The Taxes and Levies Approved List for Collection Act (1998) as amended by the Taxes and Levies (Approved List for Collection) Act (Amendment) Order 2015 empowers Ogun State Government to administer and collect the underlisted revenue items:
TAXES AND LEVIES COLLECTIBLE BY OGUN STATE GOVERNMENT:
1. Personal Income Tax in respect of –
(a) Pay-As-You-Earn (PAYE); and
(b) Direct Taxation (Self-assessment)
2. Withholding Tax (individuals only)
3. Capital Gains Tax (individuals only)
4. Stamp Duties on Instruments Executed by individuals.
5. Pools Betting and Lotteries, Gaming and Casino Taxes.
6. Road Taxes.
7. Business Premises Registration Fee in Respect of –
(a) Urban Areas as defined by each State, maximum of –
(i) N10,000 for registration; and
(ii) N5,000 per annum for renewal of registration; and
(b) Rural Areas –
(i) N2,000 for registration; and
(ii) N1,000 per annum for renewal of registration
8. Development Levy (individuals only) not more than N100 per annum on all taxable individuals.
9. Naming of Street Registration Fees in the State Capital.
10. Right of Occupancy Fees on Lands owned by the State Government in Urban Areas of the State.
11. Market Taxes and Levies where State Finance is involved.
12. Land use charge,
13. Hotel, Restaurant or Event Center Consumption Tax,
14. Entertainment Tax,
15. Environmental (Ecological) Fee or Levy;
16. Mining, Milling and Quarrying Fee,
17. Animal Trade Tax,
18. Produce Sales Tax,
19. Slaughter or Abattoir Fees, where State Finance is involved;
20. Infrastructure Maintenance Charge or Levy,
21. Fire Service Charge;
22. Property Tax,
23. Economic Development Levy,
24. Social Services Contribution Levy,
25. Signages and Mobile Advertisement, jointly collected by States and Local Government.
PERSONAL INCOME TAX
Personal Income Tax is tax that is levied on the income of individuals who are either in employment or are engaged in their own business. The Tax encompasses both PAYE and Direct Assessment.
Pay As You Earn (PAYE) is a provision under the Personal Income Tax Act, 2004 (as amended) and it is the taxation of income of individuals derived from employment. This income includes salaries, wages, bonuses, allowances and benefits in kind.
Direct Assessment is an Income Tax which is imposed on self employed persons e.g. Directors, Accountants, Traders, Hair Dressers, Carpenters, Lawyers, Mechanics, Vulcanizers, Artisans etc.
These are taxes paid on contract awarded by establishments; It can also be defined as a government requirement for the payer of an item of income to withhold or deduct tax from the payment, and pay that tax to the government.
|SN||WHT ITEM||PERCENTAGE||DEPENDENT VARIABLE|
|1||WHT on Rent||10%||Value of Rent|
|2||WHT on Interest and Deposit||10%||Interest|
|3||WHT on Dividend||10%||Value of Dividend|
|4||WHT on Consultancy||5%||Value of Consultancy|
|5||WHT on Agency and Contract||5%||Value of Contract|
|6||WHT on Construction||5%||Value of Construction|
|7||WHT on Management Service||5%||Value of Service|
|8||WHT on Commission||5%||Value of Commission|
|9||WHT on Royalty||5%||Value of Royalty|
|10||WHT on Director’s Fee||10||Value of Fee|
Stamp Duties Tax is backed by the Stamp Duties Act, Cap. 441 LFN, 1990. The tax provides for the levying of stamp duties on certain matters. The power to collect Stamp Duties by the State Tax Authority is enshrined in Section 4(2) where the State is given the power to collect the duties in respect of instruments executed between persons or individuals at such rates to be imposed or charged as may be agreed with the Federal Government.
- 3% discounted of the consideration in the Document i.e amount stated in the document
- However, re-assessment may be done taking into consideration the current market value of the property. (make room for Best of Judgement BOJ)
CAPITAL GAINS TAX
Capital Gains Tax is backed by the Capital Gains Tax Act, Cap. 354, LFN 1990. It is the taxation of capital gains accruing on the disposal of assets by an individual.
- 10% of the gain from the sales of a fixed asset
LAND USE CHARGE
The Land Use Charge Tax is backed by The Land Use Charge Law (2012) which was introduced to consolidate all land based charges under one single charge for ease of administration and collection.
The Land Use Charge incorporates the Ground Rent which is provided for under the Land Use Act; Tenement Rate which is provided for under the Local Government Law; and the Property Tax which is provided for under the Land Use Charge Law.
- As determined by Ministry of Housing and Ministry of Land and Survey.
This Tax is backed by the “Hotels and Event Centres Occupancy and Restaurant Consumption Law (2011),” and is targeted at the hospitality industry to ensure that patrons of such outfits pay to Government a minimum tax of 5% of the total bill of the item or service consumed at these facilities.
- 5% on Contract sum.
POOLS BETTING/ LOTTERIES AND CASINOS
See attached Rules and Regulations guiding its operation in Ogun State. (Hard Copy Provided)
|COST OF VEHICLE REGISTRATION IN OGUN STATE|
|VEHICLE TYPE||REVALIDATION/ REPLACEMENT||NUMBER PLATE||REGISTRATION GMR||HAND BOOK||P.O.C||VEHICLE LICENSE||TESTING FORM||HACKNEY STAGE CARRIAGE||TOTAL|
|2||VEHICLES BELOW 1.6CC WITH STD PLATE||10,000.00||12,500.00||3,125.00||1,250.00||300.00||1,875.00||1,250.00||1,300.00||20,300.00|
|3||VEHICLES BTW 1.6 – 2.0cc WITH STD PLATE||10,000.00||12,500.00||3,125.00||1,250.00||300.00||2,500.00||1,250.00||1,300.00||20,925.00|
|4||VEHICLES 2.1 – 3.0cc WITH STD PLATE||10,000.00||12,500.00||3,125.00||1,250.00||300.00||3,125.00||1,250.00||2,000.00||21,550.00|
|5||VEHICLES ABOVE 3.0cc||10,000.00||12,500.00||3,125.00||1,250.00||300.00||3,125.00||1,250.00||2,000.00||21,550.00|
|10||PICK UP VAN||10,000.00||12,500.00||3,125.00||1,250.00||300.00||3,125.00||1,250.00||2,000.00||23,550.00|
|11||BUSES (BIG) E.G COASTAL, (LUXURIOUS)||10,000.00||12,500.00||6,250.00||1,250.00||300.00||6,250.00||3,750.00||3,200.00||33,500.00|
|12||TIPPERS AND LORRIES||10,000.00||12,500.00||6,250.00||1,250.00||300.00||6,250.00||3,750.00||3,200.00||33,500.00|
|14||16 TYRES TRAILER (ARTICULATED N/PLATE)||17,500.00||20,000.00||6,250.00||1,250.00||300.00||8,750.00||3,750.00||3,800.00||44,100.00|
|15||TRACTORS AND BULLDOZER||17,500.00||20,000.00||6,250.00||1,250.00||300.00||8,750.00||3,750.00||3,800.00||44,100.00|
Offences and Penalties for breach of Tax Obligations
Late Filing of Tax Returns
(a) Every employer of labour must file tax returns by January 31 of every year. Failure to do so attracts a fine of N500,000 for a corporate employer and N50,000 for an individual upon conviction.(.S. 81 PITA) .
(b) Self employed individual who earns more than N30,000 in an assessment year must file tax returns of his global income from all sources on a previous year basis within the first 90 days of the year and assess himself to tax. (S 41, 43 and 44 PITA). Failure to file returns is an offence and is punishable with a fine of N5,000 on conviction with an additional payment of N100 for every additional day of default. Default to pay the fine attracts imprisonment of six months.
Assessment year means January 1 to December 31 of a given year.
Making incorrect returns
A person who gives false returns without reasonable excuse is guilty of an offence and liable to a fine of N20, 000 and double the amount of tax undercharged or would have been. (S.95 PITA).
False statements and returns
It is an offence to make a false statement for the purpose of obtaining any form of relief from tax payment. It is also an offence to procure, aid or abet or counsel any person to make a false report, keep a false account or unlawfully refuse or neglect to pay tax. This offence is punishable on conviction with a fine of N50,000 for an individual and N500,000 for a corporate body or to imprisonment for not more than six months. Where an offence under this section is committed by a person in relation to tax payable or repayable for an assessment year, it is punishable with a fine of N10,000 or treble the amount of tax chargeable for that assessment year, whichever is greater. (S. 96 PITA).
Failure to deduct Withholding tax
It is an offence for any person or corporate body to not deduct or after deduction not remit withholding tax within thirty days of deduction. This is punishable by a fine of 10% of the amount of tax due plus the value of the amount deducted or deductible with interest at the prevailing monetary rate of the CBN. (S. 74 PITA).
Failure to deduct tax at source when so requested
It is an offence to not deduct tax from any payment to any person when the tax authority so directs. The same sanction, as for failure to deduct withholding tax applies by virtue of the further amendment to PITA by the Finance Act 2019; fine of 10% of the amount of tax due plus the value of the amount deducted or deductible with interest at the prevailing monetary rate of the CBN.
Failure to deduct and remit PAYE
Every employer who fails to deduct and remit deductions to the tax authority within the first ten days of the new month after the month of deduction shall be liable to payment of 10% penalty per annum and interest at the prevailing commercial bank rate. The revenue authority may levy a distress on the premises/property of the employer or initiate a debt recovery action in court. (S. 82 PITA).
Late Payment of Income Tax
This is also an offence and attracts a penalty of 10% per annum and interest at the prevailing bank rate. (S.76 PITA).
Obstruction of a Tax Officer is an offence
It is an offence of obstruction to willfully neglect or refuse to give information or to attempt or mislead a tax officer in the performance of his duties. This is punishable with a fine of N5,000 on conviction with an additional payment of N100 for every additional day of default. Default to pay the fine attracts imprisonment of six months. (S. 105 PITA). Physical aggression against a tax officer in the course of his duty is assault under the criminal code and is punishable with a jail term of seven years.( S.353 Criminal Code Act)
This is a crime and may not merely consist of failure to pay tax but also willful underpayment or other unlawful act aimed at underpaying or not paying at all and is punished in the various forms in which it manifests. Tax evasion may also be punished as an economic and financial crime as well as under the criminal code law of Ogun State.
S. 94 as an omnibus section punishes offences for which there is no specific punishment.
Where there is no specific punishment provided, an offence is punishable with a fine of N5,000 on conviction, with an additional payment of N100 for every additional day of default if same is in respect of failure to file returns or keep proper account. Default to pay the fine attracts imprisonment of six months.
Tax Payable Notwithstanding Proceedings
The institution of proceedings for the imposition of a penalty, fine or term of imprisonment under PITA does not relieve a person from liability to payment of any tax for which he may be liable.