The posted price is determined by multiplying the number of crude oil barrels 9. Following the broad pattern already established in those major oil producing countries whose governments were members of OPEC Organization of Petroleum Exporting Countries.
This role of the CBN VAT is a way of charging tax on the increase in value of goods and services at each stage they are produced, rather than just selling on their final selling price to customers. A person liable to PIT is expected to compute his tax liabilityfile tax return and pay tax, if any, accordingly on a calendar year basis.
For cases of non-resident companies with a fixed base in Nigeria, their business profit is taxable based on the profit attributed to the fixed base. This incredibly well-endowed ecosystemwhich contains one of the highest concentrations of biodiversity on the planet, in addition to supporting an abundant flora and faunaarable terrain that can sustain a wide variety of crops, economic treesand more species of freshwater fish than any ecosystem in West Africa.
A tax payer may therefore choose to arrange his affairs in such a way that only the smallest size of his trade will be liable to tax.
Often gas flares are often close to local communities, and lack adequate fencing or protection for villagers who may risk nearing the heat of the flare in order to carry out their daily activities.
The ascertainment of profits, adjusted profits, assessable profits and chargeable profits as provided in section 9 include the proceeds of sale, the value of all chargeable oil disposed and all income of the company incidental to and arising from anyone or more of its petroleum operations.
To examine the relationship between revenue from petroleum profit tax and total revenue. This presupposes that there are legal framework put in place to punish tax evaders it perhaps raises a poser on the efficiency and effectiveness of tax laws and tax administration in Nigeria.
Shell-BP in the pursuit of commercially available petroleum found oil in OloibiriNigeria in Revenue from oil has played a vital role in the execution of various national development plans and still continue to do so. Strife caused production of crude to drop significantly, particularly in Biafra.
Home to more than 20 million people and 40 different ethnic groups, this floodplain makes up 7. This is the reason why all joint venture companies choose to have the taxation of their profits subject to the terms and conditions of an MOU.
The PSC deals with exploration and production of deep offshore territorial water of Nigeria. Section 1 provides for where deductions are allowed; some of those instances are as follows: The Act applies to the taxation of the assessed incomes of companies engaged in petroleum operations as defined in section 2 of the Act and this includes companies engaged in liquefied and associated natural gas operations.
The study, therefore, attempts to evaluate the impact of taxation as a source of government paying special emphasis on petroleum profit tax over a period of twenty years.
The Nigerian government in an effort towards solving this problem had even gone to the extent of engaging the services of tax consultants. It is only be a tax upon the profits of the business. Ascertainment of Profits Every company engaged in petroleum operations is required to forward to the Federal Board of Inland Revenue FBIR for each accounting period, audited accounts of its profits and losses which relate to its petroleum operations.
It is done with a view to ensuring that all companies contribute to the development of the education sector. Various person may be subject to Withholding Tax deduction to balance their tax liabilities for different types of tax.
This paper which is divided into eight parts seeks to examine the following: Gas flaring in Nigeria releases large amounts of methanewhich has a very high global warming potential. The evasion of tax by oil companies could have a drastic effect on the development of the economy of Nigeria.
Despite the effort of government, tax evasion still persists, revenue derived from taxation of petroleum profits amounts to a great portion of total tax collections of the Nigeria government.
The payment is done mainly 2 segments of phases. Total crude output decreased frombarrels per day 67, cubic metres per day in at the start of the war, to onlybarrels per day 22, cubic metres per day in There is a position relationship between revenue from petroleum profit tax and total tax revenue.
Examples are Personal income tax, company income tax, petroleum profit tax, and capital gains tax. When the imposition is on the price of goods and services, then it is called an indirect tax.
Indirect tax is payable on Annual Summary of Tax Revenue Collected in Nigeria From – Source: FIRS () Nature of the Nigerian Economy.
PETROLEUM PROFITS TAX ACT An Act to impose a tax upon profits from the winning of Petroleum in Nigeria, to provide for the assessment and collection thereof and for purposes connected therewith.
[ No. No. No. No. No. No. No. ] [1st January, ] [Commencement. ] PART 1 Preliminary 1. focuses on the assessment of the petroleum profit tax under the Petroleum Profit Tax Act, Cap P 13, Laws of Federation of Nigeria, as well as judicial authorities regarding same.
PETROLEUM PROFIT TAX AND CAPITAL EXPENDITURE OF THE NIGERIAN ECONOMY (A CASE STUDY OF LAGOS STATE) BACKGROUND OF STUDY. For the development and growth of any economy, the provision of basic infrastructure is quite necessary.
PETROLEUM PROFITS TAX (PPT) PPT is levied on the income of companies engaged in upstream petroleum operation. The rate is 85% for Joint Ventures and 50% for Production Sharing Contracts (PSC).
EDUCATION TAX (ET) ET is levied on all Nigeria companies’ assessable profits. The rate of tax is 2% of Assessable profits.
PETROLEUM PROFITS TAX (PPT) PPT is levied on the income of companies engaged in upstream petroleum operation. The rate is 85% for Joint Ventures and 50% for Production Sharing Contracts (PSC). EDUCATION TAX (ET) ET is levied on all Nigeria companies’ assessable profits. The rate of tax is 2% of Assessable profits.Petroleum profit tax in nigeria