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FG grants three-year tax relief to 33 companies, bars 10 firms

FG grants three-year tax relief to 33 companies, bars 10 firms

The Federal Government approved the application of 33 companies seeking pioneer status under the Industrial Development Income Tax Act in 2021.

This was contained in the quarterly PSI reports released by the Nigeria Investment Promotion Commission (NIPC).

The reports also revealed that investments made by the 33 companies during the year amounted to N543.88bn.

It also noted that the government declined the applications submitted by 10 investing firms including the popular FinTech, Flutterwave, during the review period.

The pioneer status is an incentive offered by the Federal Government, which exempts companies from paying income tax for a certain period. This tax exemption can be full or partial.

The incentive is generally regarded as an industrial measure aimed at stimulating investments in the economy.

The products or companies eligible for this pioneer status are products or industries that do not already exist in the country.

An analysis of the first quarter PSI report showed that while the requests of 10 firms were denied, three companies had their applications approved in principle, while six firms were granted PSI for a three-year period.

The report also revealed that 33 firms were benefitting from the tax incentive scheme in Q1, while the requests of 132 companies were still pending.

As at March 31, 2021, the firms granted tax reliefs invested a total of N45.5bn in the Nigerian economy.

The Harmattan News had reported in July that Flutterwave was one of the ten companies denied PSI in Q1 2021.

Flutterwave had in February 2022, disclosed that its valuation rose to $3bn, after it was able to raise $250m from a Series D funding round.

At $3bn, using an exchange rate of N570 to one dollar, it means Flutterwave’s valuation is approximately N1.71tn.

A cursory look at the second quarter PSI report for the year 2021 showed that the government granted tax holidays to eight firms who invested an aggregate of N12.8bn.

Seven firms got approval in principle while no application was denied in Q2, the NIPC said.

The report also revealed that 31 firms were benefitting from the tax incentive scheme, while the requests of 160 companies were still pending.

In the third quarter of last year, eight firms were granted PSI while the requests of two companies were rejected.

The firms offered tax holidays invested a whopping N328.5bn into the economy during the review period, the NIPC report said.

The NIPC also revealed that the government granted approval in principle to 16 firms, 168 applications were pending and 35 companies were benefitting from the government’s tax incentive in Q3.

Meanwhile, the latest PSI report from the NIPC revealed that in the last quarter of the year, six companies were granted tax reliefs for a three-year period.

The companies are First Independent Power Company, Cormart Nigeria Limited, Premium Agro Chemicals Limited, West African Soy Industries Limited, Prudent Energy and Services Limited, and Checkers Africa Limited.

These companies contributed N157.08bn to total investments in Q4 2021.

Further analysis of the Q4 report revealed that, during the period, 13 companies had their applications approved in principle while the application of one company was denied.

As at the end of 2021, 46 companies were benefiting from the tax incentive scheme while the requests of 186 companies were still pending.

The Acting Executive Secretary, NIPC, Emeka Offor, had in an interview with The Harmattan News assured stakeholders that the commission would , this year, partner with local and global stakeholders to boost Foreign Direct Investments into the country.

Emeka had said, “I can assure you that already, we have been getting greater response and inquiries from potential investors, within the country and across the globe.

“We plan to hold more stakeholder engagements in 2022.”

 

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Business

Alleged tax evasion: FG to arraign Binance, two others on April 4

The Federal Government will on April 4 arraign Binance Holdings Limited and its two top officials: Tigran Gambaryan and fleeing Nadeem Anjarwalla, on allegations bordering on tax evasion.

Binance, Gambaryan, and Anjarwalla, listed as 1st to 3rd defendants respectively, are expected to be arraigned before Justice Emeka Nwite of a Federal High Court (FHC), Abuja on a four-count charge.

Anjarwalla, who had been in detention alongside Gambaryan, was said to have escaped from lawful custody. He escaped on Friday from the Abuja guest house where he and his colleague were detained.

Though the Federal High Court Easter vacation began on March 22 and will come to an end on April 8, the Chief Judge, Justice John Tsoho, directed the transfer of the Binance case file to Justice Nwite.

Although Justice Nwite is not a vacation judge, the chief judge granted the fiat for the judge to handle the case during vacation being a matter that concerns dire national interest.

Hearing notices had been related to the Federal Inland Revenue Service (FIRS), the prosecuting agency, and counsel to other parties for the defendants to take their plea.

The charges levelled against Binance include allegations of non-payment of Value-Added Tax (VAT), Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.

Furthermore, the Federal Government accused Binance of neglecting to register with FIRS for tax purposes and contravening existing tax regulations within the country.

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NNPC denies reducing price of PMS

The Nigeria National Petroleum Corporation, NNPC has debunked reports that it reduced the price of Premium Motor Spirit and Automotive Gas Oil.

Olufemi Soneye, NNPC’s Chief Corporate Communications Officer, gave the denial in a statement on Wednesday.

He said the reports making the round were fake and should be disregarded.

According to the statement: “The NNPC Limited wishes to clarify rumours suggesting a price adjustment for Premium Motor Spirit (PMS) and Automotive Gas Oil (Diesel) at its retail stations nationwide. The company asserts that these reports are false and urges Nigerians to disregard them entirely.

“NNPC Ltd. reaffirms its commitment to sustaining the current sufficiency in petroleum products supply across all its retail stations in the country.”

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Binance executive who escaped from custody, colleague sue Nigerian Govt

Nadeem Anjarwalla, Binance’s Africa regional manager, who escaped from lawful custody March 22 has filed a right enforcement suit against the Nigerian government.

His colleague, Tigran Gambaryan, detained along with him has also sued the National Security Adviser (NSA) Nuhu Ribadu, and the Economic Financial Crimes Commission (EFCC) over alleged violation of his fundamental rights.

Gambaryan, in the originating motion dated and filed March 18 by his lawyer, Olujoke Aliyu, from Aluko and Oyebode Law Firm, sought five reliefs before Justice Inyang Ekwo

Anjarwalla filed his right enforcement suit also before Justice Ekwo.

Anjarwalla and Gambaryan, in the suits marked FHC/ABJ/CS/355/24 and FHC/ABJ/CS/356/24 sued the Office of NSA (ONSA) and EFCC as 1st and 2nd respondents.

Gambaryan, a US citizen overseeing financial crime compliance at the crypto exchange platform, in his application, sought a declaration that his detention and seizure of his international travel passport, contravened Section 35 (1) and (4) of 1999 Constitution (As Amended).

He said the act amounted to a violation of his fundamental right to personal liberty as guaranteed by the constitution

He also sought an order directing the respondents to release him from their custody and! return his international travel passport with immediate effect.

Gambaryan equally sought an order of perpetual injunction restraining the respondents and agents from further detaining him in relation to any investigation into or demands from Binance.

The official, who sought an order for the respondents to issue a public apology to him, also prayed for the cost of the action on a full indemnity basis.

In a statement in support of the suit, he said he is an American citizen who visited Nigeria on Feb. 26 February, along with fleeing Anjarwalla, as a representative of Binance, to honour the invitation of the ONSA and EFCC to discuss issues relating to Binance in Nigeria

Giving 11-ground argument why his application should be granted, he said that he and his colleague, Anjarwalla, dutifully attended the meeting.

He said after the meeting the two of them were detained by the respondents and had remained in detention since then.

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He said he did not commit any offence during the meeting, and neither was he informed in writing of any offence he personally committed in Nigeria at any other time.

“The only reason for his detention is because the government is requesting information from Binance and making demands on the company,” he said, adding that he was not a member of the Board of Directors of Binance.

When the two suits were called on Thursday, T.J. Krukrubo, SAN, appeared for Anjarwalla and Gambaryan

Krukrubo, told the court that though the respondents were served two days ago, they were not represented in court.

The senior lawyer, however, drew the attention of the court to their notice of withdrawal of legal representation for Anjarwalla filed on March 26.

Although Krukrubo did not give details of why they were withdrawing their legal representation, this might not be unconnected to the disappearance of the applicant in custody.

Justice Ekwo said having withdrew their legal representation, “it means that the applicant has no legal representation and requires that the matter be adjourned for the applicant to seek legal representation and for the respondents to be given an opportunity to come to court.”

The judge adjourned the matter until April 8 for further mention.

Also, upon resumed hearing in Gambaryan’s suit, Krukrubo said though the processes had been served on ONSA and EFCC, they were still within time to respond.

He therefore sought an adjourned date, saying the respondents time to file their applications would expire next week Thursday.

Justice Ekwo consequently adjourned the matter until April 8 for further mention.

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