ADVERTISEMENT
  • The Membership Club
  • #EndSARS Dashboard
  • PT Hausa
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
Thursday, May 26, 2022
Premium Times Nigeria
  • Home
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • COVID-19
    • News Reports
    • Special Reports and Investigations
    • Data and Infographics
    • Health Specials
    • Features and Interviews
    • Multimedia
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Special Reports/Investigations
    • Data and Infographics
    • Features and Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • #EndSARS Dashboard
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • #PandoraPapers
  • AUN-PT Data Hub
  • Home
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • COVID-19
    • News Reports
    • Special Reports and Investigations
    • Data and Infographics
    • Health Specials
    • Features and Interviews
    • Multimedia
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Special Reports/Investigations
    • Data and Infographics
    • Features and Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • #EndSARS Dashboard
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • #PandoraPapers
  • AUN-PT Data Hub
Premium Times Nigeria
BUA Group Ad BUA Group Ad BUA Group Ad
ADVERTISEMENT
EcoBank Headquarters

EcoBank Headquarters (Photo Credit: OnTV Nigeria)

Tax Evasion: Tribunal orders Ecobank to pay N1.6 billion to FIRS – Official

byAyodeji Adegboyega
February 26, 2020
2 min read

The Tax Appeal Tribunal, Lagos Zone, has ordered Ecobank to pay at least N1.6 billion to the Federal Inland Revenue Service (FIRS) as its company income tax for 2016.

The tribunal declared as illegal, the decision of Ecobank Nigeria Limited to pay N5.5 billion as dividends to its shareholders ”in a year the bank claimed it made no taxable profit and rather declared losses from its banking operation.”

According to a release by the Director, Communications and Liaison Department, FIRS, Abdullahi Ahmad, the tribunal reached the decision in its judgment dated February 20, 2020 which it delivered in Appeal No. TAT/LZ/CIT/024/2018.

Consequentially, Ecobank must now pay at least N1.6 billion to the FIRS as company income tax for the year in dispute – 2016

“Ecobank had dragged the Federal Inland Revenue Service (FIRS) to court over the insistence of the Service that the bank must pay in full its excess dividend tax liability of N2,079,375,000, inclusive of interest and penalty for the Year of Assessment (YOA) 2016.

“But ECO Bank argued that the dividend it paid out was tax-exempt as N4,372,244,556 out of the total sum was “profit from bonds and treasury bills”, which was not taxable based on the provisions of the Company Income Tax (Exemption of Bonds and Short-Term Government Securities) Order, 2011,” the FIRS said in the statement.

The bank after reportedly admitting to only making N1.1 billion “trading profits” from other business sources, decided that it would only pay N351 million tax to the FIRS.

The bank was said to have paid the service after some months of delay.

However, FIRS “demanded the immediate payment of the outstanding excess dividend tax liability of N1,311,673,367” from the bank, which impasse led to suit before the tax tribunal.”

Spokesperson of the bank, Austin Osokpor, told PREMIUM TIMES on Wednesday that he does not ”have prior knowledge of the case”.

“I don’t know about it at all before this time,” he said on the telephone.

He promised to react once he is able to clarify the story.

Ecobank’s ‘argument’

Meanwhile, according to the FIRS statement, the bank presented three issues for determination, namely whether the FIRS “was correct to assess the Appellant to tax under Section 19 of CITA when the income earned was “from Bonds, Treasury Bills, and other Government Securities”.

“Whether the FIRS misdirected itself by failing to take account the CIT paid by the Appellant and whether by the rules of Interpretation of Statutes, the Respondent has erred in law in its application of Section 19 of CITA.”

In its consideration of the three issues raised, the tribunal reportedly resolved them in favour of the FIRS.

It held that “companies that invest in bonds will, by virtue of the tax exemption, become liable to pay excess dividend tax on their profits.”

The court maintained that “if the tax exemption granted by the order creates an excess dividend situation, Ecobank or any other company should be liable to pay excess dividend tax on the same income that otherwise would have been exempted from tax.”

“A liability to pay excess dividend tax arises where a company that seeks to pay dividends has no taxable profit as in the instant case but has the distributable profit that is higher than the taxable profit,” the tribunal said.

The tribunal also said that the FIRS properly directed itself by not failing “to take into account the sum already settled by the Appellant” (Eco Bank) in the Service’s “total assessment of N1,663,500,000.”

Addressing the final issue for determination, the tax tribunal headed by Ado-Baba Ahmed, resolved all issues raised in favour of the FIRS.

It declared that the Ecobank “appeal fails and is hereby dismissed.”

  • WhatsApp
  • Tweet
  • Email
  • Print
  • Telegram
  • More
  • Share on Tumblr
  • Pocket

WATCH: Governor Yahaya Bello's Roadmap to Hope 2023

CITIZEN-FM AD


Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


TEXT AD: Why women cheat: what every Nigerian man should know







PT Mag Campaign AD

Previous Post

Boko Haram: Nigeria soldier goes berserk, shoots four officers dead, kills self

Next Post

UCL: Guardiola leads Manchester City to defeat Real Madrid

Ayodeji Adegboyega

Ayodeji Adegboyega

More News

Naira notes used to illustrate a story

Naira extends gain at official market

May 25, 2022
Nigerian women in a rural area [PHOTO CREDIT: CSWF]

98% of Nigerian women left out of formal credit markets

May 25, 2022
CBN Headquarters in Abuja

What CBN’s interest rate hike means for Nigerians, the economy

May 25, 2022
Floor of the Nigerian Stock Exchange

Nigerian stocks in biggest year-to-date fall after interest rate increase

May 24, 2022
Toyata Headquarters

Toyota to cut global production in June

May 24, 2022
The Central Bank of Nigeria, CBN. [PHOTO CREDIT: Ehud Kaduna]

Nigeria’s central bank raises interest rate from 11.5% to 13%

May 24, 2022
Next Post
Real Madrid vs Manchester City (Photo Credit: reuters)

UCL: Guardiola leads Manchester City to defeat Real Madrid

Minister of Finance Budget and National Planning, Zainab Ahmed

Why we've not been paying National Assembly, Judiciary full allocation — Finance Minister

Read All Comment

Search

AUN-PT Ad





Transport-Technology


Stanbic Ad


Access Bank Ad





Glo Ad


Subscribe to News via Email

Enter your email address and receive notifications of news by email.

Join 1,848,031 other subscribers.

Advertisement






netherland biz school Advert



Zenith Advert

ADVERTISEMENT

Our Digital Network

  • PT Hausa
  • Election Centre
  • Human Trafficking Investigation
  • Centre for Investigative Journalism
  • National Conference
  • Press Attack Tracker
  • PT Academy
  • Dubawa
  • LeaksNG
  • Campus Reporter

Resources

  • Oil & Gas Facts
  • List of Universities in Nigeria
  • LIST: Federal Unity Colleges in Nigeria
  • NYSC Orientation Camps in Nigeria
  • Nigeria’s Federal/States’ Budgets since 2005
  • Malabu Scandal Thread
  • World Cup 2018
  • Panama Papers Game
  • Our Digital Network
  • About Us
  • Resources
  • Projects
  • Data & Infographics
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

No Result
View All Result
  • #PandoraPapers
  • Gender
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Health
    • COVID-19
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Investigations
    • Investigations
    • Interviews
    • Multimedia
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • #EndSARS Dashboard
  • Projects
    • Panama Papers
    • Paradise Papers
    • Parliament Watch
    • AGAHRIN
  • AUN-PT Data Hub
  • Opinion
  • The Membership Club
  • Dubawa
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

Our website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.