TAX RETURNS
A Tax Returns is a document/Audited Financial Statement filed
with a Tax Authority that reports income expenses and other
relevant financial information filed annually.
Companies are required to register for tax and file their tax
returns within 6 months of their financial year end on self-
assessment or 18 months after incorporation (whichever is
earlier) Companies may file application for extension of filing tax
returns for 2 months at the discretion of FIRS.
Tax Payers calculate their tax liabilities claims, allowable
deductions and pay net tax liability.
Most tax returns can be e-filled online via the FIRS e-filing
platforms.
Gather all required documents
Complete the applicable tax form
Form C08A, C08B, C08C & C08D
Form C08A = For companies generally
Form C08B = For upstream Petroleum Operation
Form C08C = Natural Gas Liquid Separation/Sales
Form VAT 002 = Monthly VAT Returns
Form VAT 011 = Upstream Petroleum Operations
Form EDT = Education Tax
Form CGT/DE = Capital Gains Tax Chargeable
Assets on disposals
Form WHT = Returns for taxes withheld
Form HI = PAYE
DATES DUE
Form CIT = 6 Months after accounting year end
VAT = 21 days after end of each VAT period
PPT/HCT
Payable on an actual year basis Estimated Tax Returns must be
filed within 2 months of the Fiscal year. Actual Tax Returns should
be filed within 5 months after the end of the accounting period i.e.
not late than 31 May.
BOJ may be applied where FIRS is of the opinion that the tax
returns filed are deliberately misstated or where no returns are
filed within expected time of filing.
Completed tax return forms can be file electronically or
manual
Audited Financial Statements
Tax Computations schedules
Withholding tax credit notes for taxes deducted at source
Tax exemption/compliance certificates claiming any specific
tax exemption/reliefs
Supporting schedules/documents on Transfer pricing
policies, prior year losses carried forward, evidence for
special deduction claimed, such as
WHT deducted from contracts/service payment
Foreign Tax Credit – On incomes paid on profit from foreign
sources
Specific Tax Credit on Sectors Industrial or operations such
as
Tax holidays for Coy in FTZ
Tax Credit for export
Investment Tax credit on good
Foreign companies carrying out business activities or deriving
income from a fixed base: or permanent establishment in Nigeria
a/s file CIT on Nigerian source profits
Branch offices on foreign coys
Turnkey Project in Nigeria
Providing Technical Service/Mgt Consultancy
Where there is no fixed based, they should file through
appointed agent/representatives
DESK EXAMINATION
The essence of desk examination and Tax Monitoring exercise is
to ensure completeness, arithmetical accuracy and detection of
obvious misapplication of tax laws.
It is limited to issues relating to reconciliation of balances
b/forward and carried forward.
Desk examination is generally called Desk Review or Desk query.
It is within the jurisdiction of the relevant Tax office and usually
carried out by the officers in the Returns Payment Processing
(RPP).
Monitoring Exercise on the other hand is restricted to current year
activities only. This is to ensure completeness arithmetical
accuracy and detection of tax laws.
Monitoring is conducted whereby Tax Officers visits tax payers to
conduct an interview and on-site high level review of their tax
affairs.
Highlights of Desk Examination
It is limited to issues relating to reconciliation of Balances brought
forward and carried forward.
It focuses on checking the accuracy of tax computations,
losses, capital allowances and minimum tax computation.
It imposes penalties for late filing of returns and payments.
It is required to convert dormant into live cares.
It does not involved visitation to tax payers offices and
request for source document relating to revenue and
expenditure items.
It can cover beyond current tax returns where tax payers file
more than one year tax returns.
