BrazilEY Nigeria holds information session about new tax regulatory framework
Following the introduction of new country-by-country income tax reporting regulations by the Federal Government of Nigeria earlier this year, global professional services firm EY has held a “knowledge-sharing” session in Lagos to help multinational companies understand compliance under the new framework.
New income tax regulations with respect to country-by-country (CbC) reporting were implemented in Nigeria this year, which took effect as of January 2018. Two years ago, in January 2016, Nigeria signed a Multilateral Competent Authority Agreement (MCAA), which was later ratified in August 2016 by the country’s Federal Executive Council.
The new regulations, which correspond with the automatic exchange of CbC laid down in the MCAA, are aimed at enhancing the ease of doing business for multinational firms operating in Nigeria, by way of informing them of their “reporting obligations” to the Federal Inland Revenue Service (FIRS).
Reporting regulations involve requirements around a number of aspects of a global firm’s operations, including global activities, profit levels, taxes, overall revenue levels, and a number of other economic indicators. The FIRS can further leverage this information to conduct better risk assessments in the transfer pricing domain.
The move is targeted at ultimately eliminating tax evasion, which usually happens in the form of base erosion and profit shifting. The Nigerian government has been making concerted efforts in recent times to set a minimum standard in the compiling of transfer pricing documentation and CbC reporting.
To help organisations in Nigeria better understand where they stand under the new regulations, Big Four accounting and advisory firm EY has organised a “knowledge-sharing session,” which was held yesterday at the EY Nigeria office in Lagos.
“The Knowledge-sharing session is being organized as part of EY’s commitment in supporting Multinational Enterprises to better understand their compliance obligations in Nigeria and avoid penalties for non-compliance,” said Akinbiyi Abudu, Partner at EY and Leader of Tax Services.
In addition, EY clarified any queries that organisations had around the new framework. The session is indicative of the expanding advisory role that EY is playing across Africa, helping firms of all sizes on the continent with understanding the business environment, as well as advising multinationals on entry strategies into the versatile economic environment.
