Goddy Egene
Determined to stop the federal government from taking over their unclaimed dividends, some shareholders of companies listed on the Nigerian Stock Exchange (NSE), under the aegis of Palm Wealth Shareholders Association(PWSA), have instituted a case against the government at Federal High Court of Nigeria, Abeokuta Division, Ogun State.
The Finance Act 2020, signed into law by President Muhammadu Buhari last month provides that any unclaimed dividends of a public limited liability company quoted on the NSE and any unutilised amounts in a dormant bank account maintained in or by a deposit money bank which has remained unclaimed or unutilised for a period of not less than six years from the date of declaring the dividend or domiciling the funds in a bank account shall be transferred immediately to Unclaimed Funds Trust Fund.
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To reduce future debt servicing bill, the Federal Government got the Central Bank of Nigeria to crash interest payable on Treasury Bills, then raised Value Added Tax from five per cent, to 7.5, per cent, to raise its revenue profile.
But strangely, the same cash-starved Federal Government is shaving duties on imported cars from 35, to five, per cent, with the outlandish explanation that this will lead to a reduction in cost of transport, and positively reflect on cost of food.
Also, the Federal Government is thinking of selling off non-oil assets to fund the 2021 Budget. Funds from “Ancestor” Sani Abacha are thinning out as his family want the courts to unfreeze foreign bank accounts traced to him.
A. OVERVIEW
President Muhammadu Buhari signed the Finance Act 2020 into law
on December 31, 2020. The new legislation followed hot on the heels
of the Finance Act 2019
1 which amended several tax
statutes. The Finance Act 2020 was enacted in furtherance of the
Federal Government s progressive reform of the business climate
in Nigeria, and the need to constantly restructure the tax system
to align and conform same with international best practices, and
make it respond effectively to the changing socio-economic
landscape.
Specifically, the Finance Act 2020 amended fourteen (14)
principal tax and tax-related legislation. The thrust of the
legislation includes boosting government revenue, preventing base
erosion, streamlining areas of regulatory conflict and clarifying
FINANCE ACT 2020: An x-ray of major innovations in Nigeria tax system vanguardngr.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from vanguardngr.com Daily Mail and Mail on Sunday newspapers.
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FINANCE ACT 2020: Key changes and implications
On
President Muhammed Buhari, on 31 December 2020, signed the Finance Act 2020 (FA20) alongside the 2021 Appropriation Act into law. This reaffirms the Federal Government of Nigeria’s (FGN) commitment to enact fiscal policy annually, alongside the passage of the annual budget into law and aligns with global best practice.
The Act, which took effect on January 01, 2021, amended the provisions of 14 tax and fiscal related legislation, namely:
Capital Gains Tax Act (CGTA) Companies Income Tax Act (CITA) Industrial Development (Income Tax Relief) Act (IDITRA) Personal Income Tax Act (PITA) Tertiary Education Trust Fund (Establishment etc.) Act Customs and Excise Tariff, etc. [Consolidation] Act (CETA) Value Added Tax Act (VATA) Stamp Duties Act (SDA) Federal Inland Revenue Service (Establishment) Act (FIRSEA) Nigeria Export Processing Zones Act (NEPZA) Oil and Gas Export Free Zone Act (OGEFZA)