A REVIEW OF THE FINANCE ACT 2021
A Finance Act is usually implemented to govern taxes, duties, reliefs, and so in a country.
A REVIEW OF THE FINANCE ACT 2021
There are laws made by the legislature of the country to govern different sectors. There is the Labor Act to govern areas of employment, the Land Use Act to govern usage of land, Stamp Duties Act, among others.
A Finance Act is usually implemented to govern taxes, duties, reliefs, and so in a country. It provides a framework which supports the growth and influence of commercial activities.
The Finance Act 2021 was made into law from 1st January 2022 after it was signed by the President Muhammadu Buhari thereby turning the bill into a law. The Act provides for amendments to already existing laws concerning areas of business in Nigeria such as Personal Income Tax Act, among others. It clarifies and addresses certain provisions, making notable changes and bringing new ideas to these laws.
Areas of changes that the Finance Act addresses are
Companies Income Tax Act – Section 9 which deals with definition of dividend for CIT, Section 13 for taxation of non-Nigerian companies, Section 16 for taxation of insurance companies, Section 18 which covers taxability of dividends from petroleum profits, Section 23 for Exempt profits, Section 30 for Turnover assessment, Section 31 deals with Ascertainment of total profit. Other Sections include but not limited to Section 33, 39, 55, 77, 78 etc.
Personal Income Tax Act – Section 33 which reviews Personal reliefs and relief for child and dependent relatives, Section 47 & 49 discussing call for returns and information to be delivered by bankers, Section 90 which provides for offences and penalties.
· Capital Gains Tax Act – Section 36 which concerns Capital Gains Tax on display of stocks and shares. · Customs and Excise Tariff (Consolidation) Act
· Federal Inland Revenue Service (Establishment) Act – Section 25 concerns administration of tax laws, Section 28 reviews information to be delivered by banks and others, Section 50 which deals with official secrecy and confidentiality, Section 68 on status of FIRS.
· Value Added Tax Act · Stamp Duties Act · Tertiary Education Trust Fund (Establishment) Act
· Insurance Act
· Finance (Control and Management) Act, and other related Acts.
In conclusion, the Finance Act 2021 cuts across different sectors in the country as stated above. Such Acts are the backbone for the success of the finance sectors in Nigeria and if properly inculcated would bring positive growth.
NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com
WRITTEN BY CHAMAN LAW FIRM TEAM
EMAIL: chamanlawfirm@gmail.com
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