tax Archives - Gifted Analysts

Navigating Tax and Regulatory Hurdles in Nigeria’s Fintech Sector

By Dolapo AterePosted on October 30, 2023Posted in EconomyTagged cbn, Crypto, Fintech, Nigeria, Payments, taxNo Comments

The rapid growth and innovation within the Nigerian Fintech industry have transformed the financial landscape and presented unique and complex tax challenges. As Fintech companies continue to disrupt traditional financial services and expand their operations, navigating the evolving taxation landscape has become critical. The growth and competition within the payment gateway industry, as exemplified by companies like Flutterwave, Paystack, Remita, Interswitch, and others, are truly remarkable to witness. As reported by the Central Bank of Nigeria (CBN), E-payment transactions in 2022 reached an impressive volume of 22 billion. At the same time, data from the Nigeria Inter-Bank Settlement Systems (NIBSS) shows that electronic transactions amounting to ₦38.9 trillion were conducted through the NIBSS Instant Payment platform (NIP) as of November 2022 (+50.2% vs November 2021: ₦25.9 trillion). This is a testament to the robust expansion of the Fintech sector in Nigeria, attracting policymakers in terms of supporting their growth and boosting tax collections from the sector. We will delve into the problems and obstacles at hand, while also exploring potential solutions for the way forward.

Examining the Recent Amendments to the Customs, Excise Tariff, etc. (Consolidation) Act (CETA)

By Dolapo AterePosted on October 15, 2023Posted in Business & FinanceTagged Excise duty, Finance Act, Finance Minister, Import levy, taxNo Comments

The Finance Act of 2023 (FA2023 or the Act) was officially signed into law on May 28, 2023, under the leadership of His Excellency, former President Muhammadu Buhari, GCFR. The commencement date for these amendments is September 1, 2023, as per the Finance Act (Effective Date Variation) Order of 2023, signed by His Excellency, President Bola Ahmed Tinubu, GCFR, on July 6, 2023. This Act represents the fourth iteration of the Finance Act series, which commenced in 2019. It primarily refines and clarifies certain modifications introduced by its predecessors, namely the Finance Acts of 2019, 2020, and 2021, aligning them more closely with the government’s fiscal objectives and the current economic landscape. This article will focus on amendments made by the Finance Act 2023 to the Customs, Excise Tariff, etc. (Consolidation) Act (CETA) and an overview of its economic Impact.

Nigeria’s Tax Reform: Easing the Burden on the Taxpayer and Tax Collector

By Dolapo AterePosted on October 8, 2023Posted in Business & FinanceTagged CIT, FIRS, Fiscal Policy, IGR, Nigeria, PAYE, Reforms, taxNo Comments

In an ever-evolving economic landscape, Nigeria stands at a critical juncture, poised to reform its tax system to address the longstanding challenges faced by both taxpayers and tax collectors. The burden of taxation has weighed heavily on individuals and businesses for years, often accompanied by inefficiencies in revenue collection that hinder the government’s ability to provide essential services. However, with a renewed commitment to tax reform exemplified by initiatives like the newly established Presidential Fiscal Policy and Tax Reform Committee, Nigeria is embarking on a transformative journey aimed at not only lightening the load on its taxpayers but also streamlining the processes for tax collection. This paradigm shift signifies an important moment in the nation’s fiscal history, promising improved equity, transparency, and efficiency in the tax system, ultimately fostering economic growth and development for the benefit of all stakeholders. Therefore, the objective of this article is to examine reforms that can alleviate the challenges faced by both tax collectors and taxpayers.

Countering Tax Avoidance in Sub-Saharan Africa’s Mining Sector

By Abdulazeez KurangaPosted on November 6, 2021Posted in Africa & World EconomyTagged Africa, investment, Mining, SSA, taxNo Comments

Sub-Saharan Africa is estimated to possess 30 percent of global mineral reserves, representing a major opportunity for the region. Despite the high level of private investment in this critical sector, new analysis finds that many multinational companies are avoiding paying their taxes.

How to Tax in Asia’s Digital Age

By Abdulazeez KurangaPosted on September 15, 2021Posted in Africa & World EconomyTagged Asia, China, Digital age, e-Commerce, Fintech, Japan, Pandemic, tax, TradeNo Comments

Asia alone has roughly two billion internet users, with considerable room to grow. Asia’s advanced and emerging market economies have several locally headquartered tech giants—including Alibaba, JD.com, Tencent, Rakuten—and host foreign tech giants such as Facebook. A new set of agreed global tax reforms will change where these tech giants and other global giants pay taxes.

Is It Time To Tax Stock Trading?

By Joshua OlorunsaiyePosted on February 10, 2021Posted in Africa & World Economy, AgenciesTagged Financial transaction tax, Stock, Stock Market, taxNo Comments

In the economist’s utopian vision of the stock market, clearheaded investors diligently evaluate companies and invest only in the ones they expect to grow and thrive. In the process, investors direct resources where they’ll be most productive, benefiting the overall economy.

How the Rich Get Richer

By Adebisi SamuelPosted on December 1, 2020Posted in AgenciesTagged COVID-19, Inequality, investment, Pandemic, Rich, taxNo Comments

A paper co-authored this year by economists from the IMF and other institutions confirms that wealthier people are more likely to earn higher returns on their investments. It also shows that the children of wealthy people, while likely to inherit that wealth, aren’t necessarily going to make the same high returns on investments.

Financial Highlights of SEPLAT in the first 9 months of 2020

By Aminu MusaPosted on November 10, 2020Posted in Business & FinanceTagged Gross profit, NPDC, Operating profit, Profit After Tax, Revenue, SEPLAT, tax, Total assets, Total equity, Total liabilitiesNo Comments

Although revenue declined, we note that the cost of sales surged during the period. Specifically, cost of sales was N103.94 billion compared to N70.65 billion recorded in the corresponding period of 2019. This was due to 95% increase in operational and maintenance expenses (N23.56 billion) and 59.4% increase in depletion, depreciation and amortisation (N33.75 billion).

Financial Highlights of Bua Cement Plc in 9M-2020

By Adebisi SamuelPosted on November 10, 2020Posted in Business & FinanceTagged Bua cement, Dangote Cement, Gross profit, Operating profit, Revenue, tax, Total assets, Total equity, Total liabilitiesNo Comments

Gross profit grew by 13.6% compared to the corresponding period of 2019. The gross profit growth is however slow due to the fact that the growth in cost of sales was more than the growth in revenue. While revenue grew by 13.6% y/y, the cost of sales grew by 28.8%. Hence, gross profit printed N71.73 billion.

Mission Impossible? Can Fragile States Increase Tax Revenues?

By Joshua OlorunsaiyePosted on September 27, 2020Posted in AgenciesTagged COVID-19, Increase Tax, Revenue, tax, Tax RevenueNo Comments

The COVID-19 shocks are proving to be especially challenging for fragile states. Pre-COVID, fiscal revenues were low in such countries and governments were struggling to raise them. Now, COVID-19 is hitting them hard and fiscal revenues are falling. Once the pandemic abates, restoring and further enhancing tax collection is even more important to secure debt sustainability, facilitate the post-COVID-19 recovery, and meet development financing needs in order to meet the Sustainable Development Goals.

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