So, the land is a chargeable asset as it becomes subject to capital gains tax where it is sold or disposed of in any other manner as long as there is a change in its value.
Capital Gains Tax (CGT) is imposed by the Capital Gains Tax Act (CGTA) Cap C1 LFN 2004 at a rate of 10% when Companies and individuals in Nigeria make gains from the disposal of capital assets.
A smart person once said, “The only thing that hurts more than paying Income Tax, is not having to pay Income Tax”.
Courts should not be the place where the resolution of disputes begins but rather where disputes end after alternative methods of resolving such disputes have failed, as ADR processes tend to arrive at settlements that are more creative, satisfactory and longer lasting than those imposed by the Court.
After profits from all sources are added into the Tax basket, the exempted profits, deductions allowed and all allowances like Capital Allowances, Rural Investment Allowance, etc are removed from the basket. The remaining profits in the Tax basket – Taxable Income, are then subjected to Companies Income Tax rate of 30% in Nigeria.
To retain important control of resources and the economy, and because we also need what the IOCs have – Oil Exploration and Production Infrastructure, taxes are used to regularize the heavy production of our Oil and to reinvest into the economy.
A hearty congratulations, dear reader, you not only steadily pay a Federal tax called Value Added Tax (VAT), as the final consumer/buyer, you bear the burden of the tax to a large extent.
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TAX SERIES BY ENIOLA – SEASON 1 Episode 1- Canons of Taxation “You can have a Lord and you can have a King, but the man to fear is the Tax Collector.” Many of us today still share this sentiment of the Iraqi from almost 4 millennia ago that Tax is a necessary evil. Tax however, has a human face and is founded on important principles. Adam Smith in his work ‘Wealth of Nations’, propounded the Principles/Canons of an…