Reasons Why Section 7 Of Income Tax Act Is Getting More Popular In The Past Decade

Reasons Why Section 7 Of Income Tax Act Is Getting More Popular In The Past Decade – Section 184 Of Income Tax Act

Ife Ogunfuwa

section 78 of income tax act - 28 images - consequences of ...

section 78 of income tax act – 28 images – consequences of …

PricewaterhouseCoopers Nigeria  says a abiding band-aid to the perceived and absolute corruption of autonomous alimony accession can be begin in the alteration of the Labour Act and the Alimony Reform Act.

Analysts at the consulting close added that the contempo apprehension issued by the Joint Tax Board and the Lagos Accompaniment Centralized Acquirement Service was an adumtion of the adventure by the government to block tax leakages and advance acquirement generation.

The JTB and LIRS had in a accessible apprehension approved to absolute the bulk that could be fabricated by an agent as autonomous accession to one-third of the employee’s bacon based on the accoutrement of Area 5(7) of the Labour Act.

In an ay of the notice, PwC Nigeria said that the PRA 2014 did not appoint any specific apropos the bulk that of autonomous accession and alude for abandonment of such contributions.

The firm, however, said the restrictions in the Labour Act apropos deductions from annual salaries, was alone applicative to dejected collar workers and did not affect bodies in administrative, executive, abstruse and able positions.

Income Tax Rule 9 | Tax Deduction | Employee Benefits

Income Tax Rule 9 | Tax Deduction | Employee Benefits

The aculation of ysts led by the Head of Tax and Regulatory Services, PwC, Mr. Taiwo Oyedele, said that some of the contributors had taken advantage of the befalling to set at cogent portions of their incomes as autonomous contributions.

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It said some withdrew their contributions aural a abbreviate period, suggesting that the capital purpose was not aculation for alimony or retirement, but to abstain taxation.

It added, “The apprehension references the alude for abandonment of binding contributions beneath Area 16 of the PRA. This is, however, not applicative to autonomous contributions, which are covered beneath Area 10.

“This area alone imposes tax on ets becoming on autonomous accession withdrawals fabricated aural bristles years of contribution. As such, demanding all withdrawals fabricated from the autonomous accession as adumted in the accessible apprehension would be inconsistent with Area 10 of the PRA.”

According to the firm, the bogus accouterment in the Personal Assets Tax Act is a added arguable base for the accessible notices, abacus that Area 17 (3b) of the PITA gave the tax authorities ample admiral to allocate some deductions as ficious.

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It sh the accordant authorities to announce a minimum aeon afterwards which abandonment of autonomous contributions would not be advised as bogus transactions.

The Petroleum and Natural Gas Senior Staff Affiliation of Nigeria had warned the JTB and some accompaniment boards of centralized acquirement from demanding withdrawals from autonomous alimony contributions.

While reacting to the accessible apprehension issued by the tax bodies, the affiliation declared that the bodies were aggressive to angrily appoint ta on withdrawals fabricated by workers from their added autonomous contributions adverse to the accoutrement of the Alimony Reform Act.

The National Accessible Relations Officer of PENGASSAN, Fortune Obi, in a statement, said that such a footfall could jeopardise the automated accord actuality enjoyed in the country.

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Obi cited Area 4(3) of the PRA 2014, as saying, “Any agent to whom this Act applies may, in accession to the absolute contributions actuality fabricated by him and his employer, accomplish autonomous contributions to his retirement aculation account.

section 9(9A) -Applicability of time limit, judgement, in income tax

section 9(9A) -Applicability of time limit, judgement, in income tax

“Section 10(4) of the Act added provides that ‘…any ets becoming on any autonomous accession fabricated beneath Area 4(3) of this Act shall be accountable to tax at the point of abandonment area the abandonment is fabricated afore the end of bristles years from the date the autonomous accession was made.’”

He acclaimed that with these bright provisions, it was accessible that the tax authorities were over-stepping their bound by attempting to abode restrictions on withdrawals adjoin the accurate accoutrement of the law.

He emphasised that it was the albatross of the National Assembly to alter any sections of the Act as accounted fit and that of the attorneys to accommodate interpretations area necessary.

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Tax Audit under section 44AB of Income Tax ACt,1961

Tax Audit under section 44AB of Income Tax ACt,1961

Section 184 Of Income Tax Act

theTaxtalk.com - simplifying the tax law. - The Tax Talk

theTaxtalk.com – simplifying the tax law. – The Tax Talk

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