What do we do?
We are firm of Chartered accountants and tax practitioners, we rendered accounting services and statutory audits for companies. We also rendered taxation services to ensure our client is always on the right side of the law.
How do i procure Tax Clearance Certificate (TCC) for my company?
Tax Clearance Certificate is free upon application to the Federal Inland Revenue Service Close to your business. The first requirement for obtaining TCC is to have records with the Federal Inland revenue Service. TCC as its fondly called, is of two type depending on the information on it. (1) We have one that is based on POL (Pre Operation Levy) and (2) We have the one based on Tax returns filed with FIRS. The POL based TCC is the one issued to business that is yet to commenced business but need TCC to do some registration or chase some business prospect. Information on the TCC will be Nil since the company is yet to commence business.It is issued upon payment of the POL levy of N20,000 as first timer, in subsequent year the levy is N25,000. Also the status of not-yet commenced business will be confirmed by FIRS before issuing out the POL based TCC. The Tax Returns Based TCC is for companies that has commenced business and the information on the TCC will be extracted from the Tax Returns to FIRS (Tax returns include, Audited accounts, Tax computations, Evidence of Tax Payment, if any). TCC is issued within two weeks from the date of filing application and can only be denied when there is pending payment issues but not as a result issue of accuracy of tax paid.
How do my company have records with the Federal Inland revenue Service?
When a company is registered with the Corporate Affairs Commission (CAC), it is statutorily required to registered with FIRS within 18 months of registration. The requirement for registrations are (1) Copy of Certificate of incorporation and Original for sighting (2) Copy of the company memorandum and article of Association, with stamp duty on it (3) Completed VAT form 001 (4) Execute standard questionnaire for new Tax Payer on the company letter head. The registration is to be done at the FIRS close to the company business address.
What is Lagos State Consumption tax?
Hotel Occupancy and Restaurant Consumption Law is a law enacted by the Lagos State House of Assembly which imposes Tax on goods and services consumed in Hotel, Facility or Event Centers within the territory of Lagos State. It imposes on any person, Corporate or otherwise who: Pays for the use or possession of any hotel, facility or event centre; or Purchases consumable goods or service in any restaurant whether or not located within a hotel in Lagos state. The rate of tax imposed by the law is 5% of the total bill issued to the customer excluding Value Added Tax and Service Charge.
Hotels to be licensed and subject to tax by Lagos State are any building used as a guest house, inn, lodge, motel, tavern, night club, restaurant, event centre and any other place for the sale of food and drink within the premises of a hotel and includes fast food outlets and restaurants operating outside the premises of a hotel.”
What is the position of the Supreme Court Judgement on Hotel Licensing and Regulation?
The apex court led by Justice Suleiman Galadima on 19 July 2013 dismissed the federal government’s suit and delivered its judgment in favour of Lagos state. It was the view of the court that the NTDC Act went beyond its powers as stated in the Exclusive Legislative List of the Constitution which is to regulate “tourist traffic”. This effectively challenged the constitutionality of the NTDC’s powers to unilaterally regulate and control of hotels and tourism in Nigeria. The court therefore validated the respective laws of Lagos State (that is, Hotel Licencing Law of Lagos State (as amended), and Hotel Occupancy and Consumption Law).
However, the judgment did not address the issue of the imposition of tax and whether or not Lagos State has the constitutional right to impose the tax and therefore one can reasonably expect that the Lagos Internal Revenue Service (LIRS) would seek to enforce the payment of the 5% consumption tax. It should however be noted that the Supreme Court judgment did not specifically validate the tax so it is expected that the ongoing case in this regard should continue.