The Lagos Internal Revenue Service (LIRS) says personal income tax of employees in the state will now cover “income from all sources” as provided under the Finance Act (FA) 2020.
Ayodele Subair, LIRS chairman, in a circular recently released by the agency, clarified the position of the FA 2020 on the personal income tax act (PITA) which applies to Lagos tax laws.
Section 29 (2) of FA 2020 amended Section 33 (2) of PITA provided a new definition of gross income for the purpose of personal income tax.
Accordingly, “Gross Income” is defined as income from all sources, less all non-taxable incomes, income on which no further tax is payable, tax-exempt items listed in paragraph (2) of the Sixth Schedule and all allowable business expenses and capital allowances.
This implies that “all statutory contributions to national housing fund, national health insurance scheme, national pension scheme, life assurance premium and gratuities as enjoyed or subscribed to, by the taxpayer, to arrive at the gross income of a taxpayer which serves as the basis for computation of consolidated relief allowance (CRA),” Subair explained.
IMPLICATION FOR WORKERS
According to PwC, this means that employees will no longer benefit from the tax relief previously claimable on income that relates to the national housing fund, pension contribution, and other tax-exempt items usually contained in the consolidated relief allowance.
The CRA is a relief granted to taxpayers to reduce the tax burden and increase disposable income.
“The new definition means that tax exempt items should now be deducted from gross emolument before computing the CRA,” PwC said in a policy document.
“As a result, employees will no longer benefit from the additional 20 percent relief previously claimable on the portion of their income that relates to the national housing fund, pension contribution and other tax-exempt items.
“The reduction in CRA would result in higher effective tax rate and lower disposable income. Employers need to update their payroll templates or applications to ensure compliance.”
Last December, the Nigerian senate passed the 2020 finance bill, amending capital gains act; companies income tax act; industrial development (income tax relief) act; personal income tax act; tertiary trust fund act, customs and excise duties tariff; value-added tax act; stamp duties act; and electronic transaction levy.
The finance act amended the definition of gross income for the purpose of personal income tax.
Also in paragraph 33 of the Third Schedule of the PITA (and section 22 of the finance act 2020), which is a catalogue of tax-exempt items, the LISR boss said it means that “all taxable persons in employment earning the gross income of national minimum wage, (currently set at N30,00= monthly i.e. N360,000 per annum) or less are expressly exempted from paying personal income tax on the employment.”
“Additional income from other sources excluding salaried employment of taxable persons on national minimum wage or less shall be subject to tax at the applicable rate(s).”
It advised all taxable persons within the state to file their statutory annual income tax returns via its electronic tax platform.
Benin Republic court declines extradition of Sunday Igboho to Nigeria, orders him to remain in cell
The Court D’Appal of Cotonou has ordered Yoruba Nation agitator, Sunday Adeyemo, popularly known as Sunday Igboho, to be kept in prison custody pending further investigation.
The court, however, declined the extradition of Igboho to Nigeria.
The court, which was expected to start hearing the case at 10:00am, barred reporters and supporters of Igboho who besieged the premises. The hearing commenced at about 5:00pm.
Supporters of Igboho were dispersed from the premises of the court later in the evening, prompting fears that he might be deported to Nigeria.
The government of Nigeria had accused Igboho of trafficking in arms, inciting violence to disrupt public peace, and agitating for secession. It also sought his extradition to Nigeria.
Igboho and his wife, Ropo, were arrested at the Cardinal Bernardin International Airport, Cotonou, last Monday while trying to catch a flight to Germany.
However, Ropo, who is a German citizen was set free by the court on Thursday while the self-styled agitator was remanded in the custody of Brigade Criminelle in Cotonou.
Igboho was placed on the wanted list on July 1 by the Department of State Services after its operatives raided his Soka residence in Ibadan, killing two of his aides. They arrested 12 others during the operation.
Buhari arrives London to see his doctors and for summit
President Muhammadu Buhari has arrived London partly to see his doctors and also to participate in the Global Education Summit on Financing Global Partnership for Education (GPE) 2021 to 2025.
His aircraft landed at Stansted International Airport, London at about 11:20pm (local time) with the temperature at 22 degrees celsius.
According to the President’s spokesman, Mr Femi Adesina, the summit would be co-hosted by the Prime Minister of the UK, Boris Johnson, and the President of Kenya, Uhuru Kenyatta.
According to him, the summit will bring together Heads of State and Government as well as stakeholders and youth leaders, and provide a platform for partners to chart a way forward toward transforming education systems in partner countries through exchange of best practices.
“It will also offer the opportunity for leaders to make 5-year pledges to support GPE’s work to help transform education systems in up to 90 countries and territories.
“Deliberations at the Summit will focus on: ‘The Power of Education –A Conversation between Global Champions’; ‘Transforming Education for Girls’; ‘Financing for Impact and Recovery’; and ‘What Now? Priorities for Transforming Education in the Coming Five Years’, among others,’’ Adesina stated.
He said the Nigerian leader would also hold a bilateral meeting with the British prime minister.
After the Summit, Adesina said, Buhari will spend a few days to keep a scheduled medical appointment.
“He is due back by second week of August 2021,’’ he said
Here’s what happens to your body when you stop having sex for a long time
Dry spells happen to a lot of people and it’s normal. When it comes to abstaining from sex, there are some physical consequences but most of them are as a result of not getting the health benefits that sex can offer.
Here’s what happens to your body when you stop having sex for a while.
1. Harder to get an erection
No sex for a long time in men can lead to a higher risk of developing erectile dysfunction due to a drop in testosterone level.
2. Less lubrication in women
Women in this situation may experience vaginal dryness since lack of sex and orgasms lowers the levels of estrogen – the hormone responsible for lubrication. Also, no sex for a long time can lead to problems getting aroused or reaching an orgasm. Regular sex or masturbation can keep the tissues in your vagina healthy by improving blood flow.
3. Cardiovascular health
It’s not just about sex being a form of exercise but also about the fact that sexual intercourse helps keep your estrogen and progesterone levels in balance, which can lower your risk of heart disease.
4. Increase in stress and anxiety level
Sex releases endorphins and the hormone oxytocin into the body which reduces stress and anxiety. Unless you get yourself involved in a lot of different activities that can help you reduce your stress, this will all be pent up in your system.
5. Poor Immune system
The body gets a boost from sex as endorphins are released. People who have regular sex have a high IgA, an antibody that shows how tough our immune system is. Stopping sex for a long period affects your immune system and you tend to get the flu easily.
- Benin Republic court declines extradition of Sunday Igboho to Nigeria, orders him to remain in cell
- Buhari arrives London to see his doctors and for summit
- Here’s what happens to your body when you stop having sex for a long time
- Police release activist, Sowore, AIT Reporter after illegal arrest, assault
- ‘Sexual assault’: Court admits CCTV footage as evidence against Baba Ijesha
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