Thread by @WoleOluyemiCo

This is a thread on the Taxability of educational institutions in Nigeria. 👇🏽

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#SchoolTax #WoleOluyemi 9/12

FYI - Section 23(1)(c) of CITA provides that “profits of any company engaged in ecclesiastical, charitable or educational activities that are of public character and the profits are not derived from a trade or business carried on by such company”
#SchoolTax #WoleOluyemi 10/12

Based on the “letters” of CITA, it would appear as if the major bases for the tax exemption are the nature of activity, “public character” and non-derivation of profit from a trade or business. Kindly that CITA does not define “public character”
#SchoolTax #WoleOluyemi 11/12

So, the courts seem to have now defined (albeit indirectly) “public character” to mean the inability to be able to distribute profits (dividends, etc) through the registration as a “company limited by guarantee” (CLG).

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#SchoolTax #WoleOluyemi 12/12