Business
MTN Nigeria appeals $72.5m tax tribunal fine
MTN Nigeria Communications Plc has appealed the decision of the tax appeal tribunal (TAT) over the payment of $72.5 million fine to the Federal Inland Revenue Service (FIRS).
The telecommunications company made this known in a statement signed by Uto Ukpanah, MTN’s company secretary.
Recently, a TAT in Lagos ordered the telecom giant to pay $72,551,059 in tax default to FIRS.
A five-member panel of the tribunal led by A. B. Hamed gave the order while delivering judgment in an appeal marked TAT/LZ/VAT/075, filed by MTN Nigeria.
The tribunal had raised five issues for determination.
However, in its verdict, the first four issues were resolved in favour of the FIRS, while issue five was resolved in favour of MTN.
The tribunal, thereby, ordered MTN to pay the $72,551,059 principal sum.
The tribunal also absolved MTN from paying the sum of $21,039,807 as penalties and interest on the principal sum.
Reacting to the judgement on Monday, MTN Nigeria said it has “resolved to appeal the decision of the tribunal”.
The telecom giant, therefore, assured the Nigerian Exchange Limited and the investing public of its commitment “to meeting our tax obligations.”
The dispute between MTN Nigeria and the FIRS dates back to 2018, when the office of the attorney-general of the federation (OAGF) issued a report alleging that the company had underpaid taxes on its import duty and value-added tax (VAT).
The OAGF’s report was based on an investigation into the firm’s Forms A and M transactions between 2007 and 2017.
In 2018, according to the statement, the OAGF demanded approximately $2 billion in tax arrears from MTN Nigeria.
“In 2020, the AGF withdrew from the case and transferred the Form A-related transactions valued at $1.3 billion to the FIRS and the balance to the Nigerian Customs Service (NCS) to resolve the contentious issues,” the statement reads.
“After a series of engagements, the FIRS issued an initial assessment of $93.6 million comprising $72.6 million as principal liability and $21 million for penalties and interest on the principal amount.
“Following an objection by MTN Nigeria and further engagements, the FIRS issued a revised total assessment of $135.7 million, representing a principal tax liability of $47,8 million and interest and penalty of $87.9 million.
“MTN Nigeria filed an appeal at the TAT.”
The transactions in question primarily involve the alleged VAT payable on offshore training services provided to employees of the company, transponder services provided by a non-resident company, and software licensing and upgrades.
Business
Akwa-Ibom government to pay extra one-month salary in December
Akwa Ibom State government has announced its readiness to pay an extra one-month salary to workers in its employ in the month of December, popularly known as Eno-Mber.
It could be recalled that the current administration started the payment of Eno-Mber last December in its commitment to the welfare of workers.
The state governor, Pastor Umo Eno who announced this during a church service at the Eternity Mission International Church on Sunday, advised those constantly agitating for disruption in the smooth and seamless relationship that has existed between the State Government and the Organized Labour to have a rethink.
He reiterated that the payment of the N80,000 minimum wage to all public servants would commence shortly after completion of the ongoing proper verification exercise.
These were contained in a statement signed by Chief Secretary to the Governor, Mr Ekerete Udoh and made available to newsmen yesterday in Uyo.
His words, “I am aware that quite a number of our Civil Servants have relocated within Nigeria while others have gone abroad. We have to be sure that those receiving payments are real Civil Servants.
“My watchword since assuming office has been transparency and honesty in service deliverables and we have to ensure that we carry this through this verification exercise, which would soon be completed.
“Since we came in, we have paid critical attention to the needs and the welfare of civil servants in this State. To date, we have paid N35billion in gratuities to retired state, local government workers and primary school teachers in the State “
According to the statement, the governor during the last Public Service Week, had announced a bonus of N1.1billion naira to all public servants in the State, which was promptly paid.
It disclosed that apart from prompt payment of salary, pension and gratuities as mentioned above, Eno had also released and ensured prompt payment of Wage award for 3months to cushion the effect of high cost of living occasioned by fuel subsidy removal.
“He is also committed to investing in Affordable Housing Scheme for Workers. Last September, 150 homes at the Grace Estate were given to Civil Servants from grade levels 1-8 free of charge through raffle draw.
“He had also given approval for the conduct of all Service Examinations in preparation for 2024 promotions as well as the release of 2023 promotion and an increase of pension to workers who retired before 2012.
“Equally striking in the Governor’s dedication to the welfare of workers, was the approval given for release of outstanding 7.5 per cent contributory pension to contributors as well as the appointment of 22 new Permanent Secretaries”, the statement added.
Business
No November salary for workers without valid residents registration number, says Kwara state government
The Kwara State Government has urged public sector workers yet to register with the Kwara State Residents’ Registration Agency (KWSRRA) to do so immediately because anyone without it will not get the salary or bonuses in November.
The state commissioner for finance, Dr Hauwa Nuru, disclosed this in a statement in Ilorin on Monday, stating that the registration started in July.
The KWSRRA, she said, is empowered by law to have relevant data on every resident in the state and allocate unique identities to each person for effective planning, resource management, service delivery, and public safety, among others.
“In line with the administration’s commitment to accountability and transparency in resource administration, a directive had since been issued mandating all state employees, including those across the 16 local government areas, to complete their registration.
“Effective from November, workers who have not registered will not receive salary payments or bonuses,” she said.
The commissioner noted that the KWSRRA registration was a vital step towards establishing a comprehensive and accurate database that enables us to serve Kwara residents more effectively, and ensuring that every state worker is registered strengthens our payroll system, enhances service delivery, and builds trust in our processes.
“The integrity of our data impacts all our financial and administrative systems.
“A complete database helps us make informed decisions, allocate resources efficiently, and ensure that every eligible worker is compensated fairly and accurately,” she added.
”All state employees who have not yet registered are advised to do so,” she said.
She urged all the state employees who are yet to register to promptly visit the nearest KWSRRA centre to complete their enrolment.
“By following this directive, Kwara government is working to establish a more efficient and equitable system for its workforce and residents alike,” she said.
Business
‘It’ll reduce ponmo consumption’ — FG to establish leather factories across 36 states
The Nigerian Institute of Leather and Science Technology (NILEST) says plans are underway to establish mini tanneries or factories in all states of the country to process hides and skin into leather.
Mohammed Yakubu, NILEST director-general (DG), spoke in an interview with NAN on Sunday in Abuja.
Yakubu, who is also the chairman of the implementation committee of the national leather policy, said more tanneries are necessary to provide the right infrastructure and technology for the proper processing of leather.
He said leather is a huge national resource with the potential to generate foreign exchange and massive employment.
“Nigeria is not unknown in the area of leather products. We used to have 84 leather industries and some even have branches in Italy and Spain,” Yakubu said.
“The Nigerian leather industry had branches in Europe. We want that to come back.”
“It is not the issue of technology because NILEST is providing all the technical requirements for the Nigerian tanneries and Nigerian leather industry to make an impact in the world,” he said.
“We are not lacking that but poor infrastructure is what is hindering us, especially power which consumes over 50 per cent of our production cost.”
He said that for Nigeria to compete with China, Brazil or India in leather industries, there must be a cheap and regular supply.
“There must be some concessions. We must provide cheap power to our industries, particularly the leather industries, for them to be able to compete with their foreign counterparts,” Yakubu said.
‘ESTABLISHMENT OF MINI TANNERIES WOULD REDUCE CONSUMPTION OF PONMO’
Yakubu also said the establishment of the mini tanneries would reduce the consumption of hides and skin in the country, which was being done largely because the number of industries cannot mop up the excess products generated every day.
Animal skin is locally known as ‘ponmo’.
“We are eating the hides and skin as ponmo because if we don’t eat it, the available industries cannot mop all the hides and skin produced in Nigeria,” the DG said.
“In Lagos State alone, they slaughter about 100,000 cows every day and there are only 48 industries that can buy and process the skin and convert it to leather.”
Yakubu, therefore, said by reducing the cost of production, more industries would spring up.
“The main problem is power. As far as I’m concerned, the issue of tax is secondary,” he said.
“What’s important is to employ our teeming youths and attract foreign exchange, therefore, whatever concession is given to the industries will never be a waste.
“From the point of view of the leather policy, we are asking the government to take a look at the power component for our processing industries in Nigeria, because with this problem, it is not going to be an easy task for the industries to come back to life.
“That is why we are planning to establish mini tanneries all over Nigeria; our campaign to make people stop eating Kpomo has gone far and wide.
”We are aware that if people stop eating Kpomo, those people engaged in selling it will go out of business.
“So in the interim, we, the institute, are going to have mini tanneries all over Nigeria, so that we buy the hides and skin, process it into leather and export the leather.”
Yakubu also said the mini tanneries would be processing between one to five tonnes of leather every week from each of the clusters, particularly the ones products could be made from.
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