Federal Inland Revenue Service (FIRS) through various Information Circulars published April 29, 2020, has successfully clarified a lot of grey areas which have generated diverse of arguments and/or different interpretations at many fora by the Tax Practitioners.
With this information circulars, the ambiguity surrounding the right application of the Finance Act has been, to a greater extent, lay to rest. The circulars are:
- Circular No: 2020/03 – Circular on Tax Implications of the Operations of Regulated Securities Lending Transaction (‘SEC Lending’) in Nigeria;
- Circular No: 2020/04 – Clarification on Sundry Provisions of the Finance Act 2019 as it relates to Company Income Tax Act;
- Circular No: 2020/05 – Clarification on the Provisions of the Stamp Duties Act;
- Circular No: 2020/06 – Clarification on Commencement and Cessation Rules, and Business Reorganization: – Sections 29 of CITA, 32 of CGTA and 42 of VATA (as amended by the Finance Act, 2019);
- Circular No: 2020/07 – Circular on Tax Implications of Operation of Real Estate Investment Companies (‘REIC’) in Nigeria; and
- Circular No: 2020/08 – Clarification on the Amendment to Section 16 of Companies Income Tax Act in Relation to Taxation of Insurance Companies.