I stumbled upon this case...

United Capital Trustee v FIRS, very interesting...

In summary, United Capital (UC) paid dividends to parent coy in excess of total profits. FIRS thus invoked Sec 19 of Corporate Income Tax Law to claim tax on that excess distribution.

please read.
UC in their defense said they relied on an "exemption order" issued by the President of Nigeria called the Companies Income Tax (Exemption of Bonds and Short Term Government Securities) order 2011
UC and FIRS went to the tax appeal tribunal, this tax even followed a review of books from 2011 to 2016.

The Tribunal held that "Executive Orders are inferior to the Corporate Income Tax Law...."

I am not a lawyer, but I find it interesting that a presidential Executive Order is termed "inferior".

My assumption was that the point of Executive Order was to "unblock" issues created by legislation and jurisdiction?
so what's the point?

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More from @FinPlanKaluAja1

22 Nov
Recession? What does it mean?

Imagine a bakery making Agege bread, They buy

Pay salary
Pay taxes
Deposit cash in bank, banks use that deposit and creates loans.

An econony built by Agege bread

Ioaf cost N50, output 1000 so "GDP" is N50 x 1000 =N50,000 Image
Then crisis, and people lose jobs.

Instead of buying one Agege bread and day, they buy one every two days..

So bakery sells less bread, instead of 10,000 loaves they sell 5000

So "GDP" is N50 x 5000 = 25000

A 50% fall in output of Agege bread Image
What happens? Well less Agege bread output means

less flour bought
less sugar bought
Less salary paid
Less cash deposited

So Agege industry states to infect other sectors like banking.

Those sectors also cut down on spending, pay less workers...a vicious cycle starts
Read 6 tweets
19 Nov
Let's use this offer to talk about Bonds

1. Issuer: this means the person you are lending your cash to in return for the paper called the Bond.

With Bond the KEY RISK is the Issuer.

A Venezuela Bond is more risky than a Bond issued by Switzerland.

Get my drift? Image
Sponsor: this is the financial house packaging the bond on behalf of the issuer

Securities and Exchange Commission registers and regulates these Issuing houses. Image
Program Size: this is the TOTAL amount authorized by the issuer to raise via bonds.

Issue Size: This is how much the Issuer/Sponsor are now offering to investors from that Program Size. Image
Read 16 tweets
16 Nov
Folks, once someone makes you a financial promise e.g. "invest and earn x% guaranteed" he is selling you a BOND

No matter what its called....cryptocurrency, equity, farm etc, that promise becomes a BOND

(A bond is simply a paper given to you when you lend money to some)
BOND have 4 key characteristics

1. They have a promise to repay, mostly supported by a Sinking Fund

2. They state if they are secured by collateral or if they are naked....

3. They state clearly what the cash being raised is to be used for.

4. They are registered
So when you want to invest ask the Bond issuer..

A. How will you repay? Sinking Fund?
B. Collateral?.
C. Where is the written document that states usage?
D. Where is it registered?
Read 4 tweets
1 Nov
New month....

This month I want to try something new.

This book "richest man in Babylon is the DNA of all investment and personal finance books...I will attempt to serialize a part of it

Seven Cures for a Lean Purse

1st Cure:  Start Thy Purse to Fattening

Arkad recognizes the great benefit of paying oneself first out of all income.  The recommended amount is not less than 1/10 of all earnings.

Me: When you earn save at least 10%, then invest it.
2nd Cure :  Control Thy Expenditures

Arkad explains that “what each of us calls ‘necessary expenses’ will always grow to equal our incomes unless we protest to the contrary’.

Me: Live within your means. Spend less

Read 12 tweets
17 Oct
Looking at the FGN Half Year Budget review....a few things

Expected Revenue N40b
Actual Revenue N0.00

2.Govt Owned Entp. (Exclude NNPC)
Expected Revenue N495b
Actual Revenue N0.00

3. Recoveries/Fines
Expected Revenue N118b
Actual Revenue N0.00
10 year average for collections

(2010 to 2019)

1. Company Income Tax: N111.49
2. VAT: N69.27
3. Customs: N66.40b
4. Independent Revenue N50.72
Half year 2020

Total FGN share of Crude Oil & Gas

Total FGN personal cost (MDA only)
Read 5 tweets
4 Oct
In April 2006, Nigeria paid off all her foreign debt.

It was a good deal, Nigeria essentially paid $12b to settle over $30b in debt, in effect an over 50% discount.

Should Nigeria have used $12b to build rails or pay debt?

A very short trend
Borrowing is front loaded consumption.

When Nigeria Borrowed $30b (principal plus interest) she essentially consumed "tomorrow's $30b earnings "today".

To repay, Nigeria has to take current earnings and apply to current obligations.

What are the current earnings? Crude oil
Let's step back, did Nigeria actually borrow $30b?


$30b represented principal and accrued intrest..As long as a loan were "open", intrest accrued.

The debt had ballooned not because Nigeria borrowed more but that Nigeria serviced the loan less
Read 6 tweets

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