As a lawyer, i’ve met people who have raised the above concern. If you recently had your business registered in Nigeria, and you have similar concerns please take the following steps;
- Obtain your tax identification number from the relevant tax authority immediately after having your business registered.
- Notify the relevant tax authorities of your intentions not to commence business operations for the time duration you have in mind.
- Keep an acknowledged copy safe for future references.
However, it is important that you take note of the following points;
- Your notice of non – commencement should be done immediately after registration. A notice of non – commencement given after five years of registration for instance may not fly.
- Where you claim your business isn’t in operations, you must ensure your claim can be verified by your words and actions. You can’t say your business isn’t in operations and you have a business account indicating ongoing financial transactions!
I hope you got value from this?
Eno William
Thanks for this barrister. I have a concern here. My business has been registered since 2011 as a business name but has not been actively involved in any form of business. Though in thee period outlined, I did not obtain a TIN for the business. How can I go about evading tax foe the years I have not been in business? Looking forward to your reply.
Cynthia Tishion
Hello Eno Williams, thank you for your question. First let me clarify the point that the purpose of this article is not to enable businesses or tax payers "evade" taxes, but to "avoid" taxes within the provisions of the law. Both phrases are two separate things and have separate implications. The former is illegal, while the later is lawful. As regards, your question, you cannot go about avoiding taxes lawfully without obtaining your tax identification number (TIN) as well as following the procedures outlined in the article. Not obtaining your TIN as required by law amounts to evading taxes which is illegal. To avoid paying taxes especially as an entity that has not been actively involved in any form of business, please follow the steps provided in the article. If you need further clarification, you may give us a call through the numbers displayed on the website and we'll be in touch. Furthermore, if you'll like to know how to take advantage to tax laws for your business's benefit, you could get our ESSENTIAL TAX GUIDE at our store via this link https://lexpraxisng.com/product/essential-tax-guide-for-businesses-in-nigeria-ebook/ I look forward to your feedback!