Top 6 things to do about The Nigerian Tax Reform Acts

In view of the changes introduced by the Acts, companies and businesses need to:

Become aware

Sensitise management – Organise sensitisation workshops for relevant board committees and executive management on the impact of the reforms on your business

Empower your people- Train and upskill staff to ensure seamless adoption of new tax laws in specific roles and processes that are impacted.

Assess

Carry out a holistic impact analysis – Proactively assess the corporate structure, operational, financial and compliance implications arising from the tax laws.

This can also include considering the impact on supply chains, commercial arrangements such as acquisitions and divestments, incentive regimes and so on.

Articulate

Reframe tax strategy- Reframe your tax strategy to align with the commercial goals of the business. More will be expected from the tax function to protect business value amidst the various changes arising from the new laws or technology changes such as the VAT fiscalisation.

Set up a Tax Risk Register- Implement a living risk register to continuously identify, monitor, and control tax risks and opportunities that have been triggered by the reforms in real time.

Operationalise and implement

Update compliance processes- Taxpayers will need to update their compliance processes in line with the tax laws. For example, taxpayers will need to update their systems to cater for new rates, revised compliance obligations and filing requirements, information sharing, claim of input VAT etc.

Execute your implementation plan- Achieve tasks in your implementation plan effectively and efficiently in line with your strategic objectives.

Leverage technology- Update the logic in accounting software and ERP to align with the new rules. Ensure processes and technology align to ensure end-to-end compliance and prepare for changes such as e-invoicing.

Optimise tax governance & management frameworks- Evaluate, expand, or eliminate tax functions and processes for effectiveness and efficiency, closing compliance gaps and embedding robust internal controls.

Engage

Engage stakeholders -Determine a communication strategy and protocol for key internal and external stakeholders. Some examples include: Shareholders – ROI impact, Employees – PAYE impact, Customers – e-invoicing processes, Vendors – KYC and validation, Tax authorities – rulings on new risks, host communities etc to ensure a smooth transition and adoption process.

Monitor

Stay updated- Regularly monitor official communications, information circulars or regulations from the government authorities issued pursuant to the Tax laws.

Manage change – Apart from training and upskilling, there should be a deliberate change management plan to drive behaviour, review and monitor the transition and adoption of the new rules.

Credits to PricewaterhouseCoopers

Check out all PensionNigeria Financial Blog posts here

Be the First to Know – Follow PensionNigeria WhatsApp Channel Its Free – Click here to follow our WhatsApp Channel

Support PensionNigeria

Support PensionNigeria financially with N1,000 per Month HERE, or with any amount ONCE (One Time Only) HERE
Empower us to do more independent analysis of the Pension Industry in Nigeria

Be the First to Know – Follow PensionNigeria WhatsApp Channel
Its Free – Click here to follow our WhatsApp Channel

Don’t Miss Anything Subscribe to PensionNigeria Newsletter on Substack

Once you Subscribe, we immediately send you an Email.
Please check your Inbox and SPAM folder.
If the Email is in your SPAM folder, kindly move it to your Inbox and add pensionnigeria@substack.com to your address book or contacts.
If you have subscribed before and you still do not receive our Newsletter,
please check your “Spam Folder”, if you find our Newsletter there, mark it as “NOT SPAM” or move it to your Inbox

Check here for Recent PensionNigeria Newsletter

Follow PensionNigeria on Social Media

Like our Facebook Page
Follow us on Twitter, Instagram & LinkedIn
Subscribe to our Channel on YouTube

Grow Your Personal Investment with Stanbic IBTC Asset Management

Pension is Your Right,
An Insurance for Old Age
Follow PensionNigeria on Social Media LinkedIn Twitter Instagram Facebook YouTube