Payment of Tax on Interim Dividends | KPMG | NG

Payment of Tax on Interim Dividends – Controversies and Implications for Business

Payment of Tax on Interim Dividends

The fact that Nigeria is currently facing one of its most turbulent economic crises in its 56 years post-independence history is no longer news. In fact, government revenue has significantly dwindled from N7.28 trillion in 2010 to N6.91 trillion in December 2015. The situation has equally impacted companies as the foreign exchange crisis has seen some businesses shut down or suspend operations due to their inability to meet up with the increasing operating costs.

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Payment of Tax on Interim Dividends – Controversies and Implications for Business

The fact that Nigeria is currently facing one of its most turbulent economic crises in its 56 years post-independence history is no longer news. In fact, government revenue has significantly dwindled from N7.28 trillion in 2010 to N6.91 trillion in December 2015.

The situation has equally impacted companies as the foreign exchange crisis has seen some businesses shut down or suspend operations due to their inability to meet up with the increasing operating costs. A major factor which has been identified as the cause of Nigeria’s economic difficulty is her mono-cultural economic structure as demonstrated by her over-dependence on oil for over 90% of foreign exchange income. Unfortunately, the crash in global crude oil prices has left the economy vulnerable, leaving the Federal Government of Nigeria (FGN) with the challenge of diversifying her economy.

© 2017 KPMG Professional Services in Nigeria, a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

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