Headlines
ASUU strike: How companies can fund universities with taxable profit – FRIS
Nasiru Yusuf
The Federal Inland Revenue Service (FIRS) said Nigeria’s company income tax law has allowed corporate organisations to donate up to 20% of their taxable income to universities.
KANO FOCUS reports that the legal officer in the legal department of FIRS, Barr. Thihwi Dauda revealed this while making a presentation titled, ” CSOs and Profit-making; legal perspective”, at the three-day National Conference on Civil Society Regulatory Environment in Nigeria organised by the EU-ACT project in Nigeria.
Dauda pointed out that if these provisions of the tax laws were exploited by our universities, the incessant strike by the Academic Staff Union of Universities, ASUU would have been addressed.
Cross section of participants
“There is provision for donations to the Universities; Section 25a and 26 of the Company Income Tax makes a provision that a company can make a donation to the University up to 20% of its total cost and that donation will be removed as an allowable expenses in the company book.
“If all these blue chip companies are making donations to the Universities under that section, I think most of the infrastructure the Universities need today will be there and it will reduce the incessant strike by ASUU,” Mr Dauda said.
The tax official urged Civil Society Organisations to exploit the provisions of the nation’s company income tax laws to solicit funds from companies to finance their not for profit operations.
According to him “Donations made to CSOs by companies are allowable expenses under the companies income tax.
Cross section of diginatries
“Section 23, sub-section 1c made a provision that when a company make donation to CSOs which is not more than 10% of its profit, such donation is an allowable deduction in the financial book of that company. So the company will not suffer for making such donation.”
He noted that although operations of CSOs are exempted from tax, profit made from businesses undertaken by subsidiaries of CSOs such as schools, hospitals and other social enterprises are taxable by law.
“Under the provisions of the law profits generated by CSOs through legitimate business cannot be shared by the promoters of the organisation, but spend in the realisation of its objectives,” Mr Dauda said.
Cross section of participants
The three-day conference began Tuesday in Abuja with the support of the European delegation to Nigeria, ECOWAS and the Agents for Citizen-Driven Transformation (ACT) programme.
Attendees included representatives of civil society groups, government (regulatory agencies, legislators, etc), development partners, donor community, private sector, opinion leaders and other interest groups.
The participants at the conference recommended that the government should provide incentives for companies operating in Nigeria to make donations to the nonprofit sector and such donations can be deducted from the company’s tax liability as stipulated by the Company Income Tax Regulation.
They also urged regulators to ensure CSOs have access to needed information on existing guidelines and obligations of the non-profit sector to ensure total compliance with such regulations.
Cross section of participants
“It is imperative for the regulators to constantly engage the CSOs to provide updates and provide needed assistance in compliance with the regulations including complying with the rules of the Financial Reporting Council,” participants said.
They said CSOs in Nigeria are currently burdened with multiple regulatory laws and some of such laws have very insidious provisions that tend to stifle the CSOs’ operational environment.
A cross-section of panellists conceded that “CSOs in Nigeria have always been regulated, but recently introduced regulations such as CAMA and the proposed NGO regulation bill have provisions that cast doubt on the intentions of the government.
“These kinds of regulations are what continue to put both regulatory agencies and civil society actors at loggerheads,” they said.
The 3-day National Conference on Civil Society Regulatory Environment in Nigeria brings together various actors from the civil society sector, and government including regulatory agencies and legislators, as well as donors and other stakeholders, to discuss pertinent issues that affect the effectiveness and impact of the civil society sector from the point of view of enabling a conducive regulatory environment for CSO operations in the country.
The broad objective of the conference is to create an opportunity for stakeholders to synergize efforts at improving the CSO regulatory environment.
The Conference is aimed at generating shared understanding and collective perspectives by stakeholders on appropriate instruments of regulation and effective processes to regulate CSOs operation in Nigeria as well as increasing broad public awareness about the roles of CSOs and the need for an enabling regulatory environment to protect the sector from repressive legislation.
This convergence is the first of its kind to provide a neutral platform for multi-stakeholder dialogue and ensure that all relevant opinions from all concerned groups are holistically collected.
It is therefore hoped that the conference will result in the development of comprehensive recommendations arising from the resolutions reached and agree on modalities for implementing the recommendations.
The Conference was supported with funding from the European Union delegation to Nigeria and ECOWAS and the Agents for Citizen-Driven Transformation (ACT) Programme which is implemented by the British Council.
Nasiru Yusuf Ibrahim
Governor Abba Kabir Yusuf has approved the appointment of Mustapha Adamu Indabawa as the new Managing Director of Kano state-owned Abubakar Rimi Television Corporation (ARTV) and Yusuf Kabir Gaya, Executive Chairman, State Universal Basic Education Board (SUBEB).
KANO FOCUS reports that the appointment was contained in a statement signed by the governor’s chief press secretary Sanusi Bature Dawakin Tofa on Wednesday.
Yusuf Kabir Gaya
According to the statement,the Governor had also approved the appointment of Hon. Salisu A. Kabo, Director General, Youth Empowerment, Dr. Hamisu Sadi Ali, Director General, Debt Management Office, and Abduljabbar Mohammed Umar, Director General, KAN-INVEST.
Others appointed by the Governor are:Yusuf Kabir Gaya, Hamisu Dogon Nama, Managing Director, Kantin Kwari Market,Abdulkadir B. Hussain, Managing Director, Sabon Gari Market and Dr. Kabiru Sani Magashi, Acting Managing Director, KASCO.
The rest are: Aminu Aminu Mai-Famfo, Deputy Managing Director, KASCO and Engr. Abubakar Sadiq J. Deputy Managing Director, Kano Line.
The statement said the appointments which were with immediate effect, were made “pursuant to the quest of placing appropriate hands to improve good governance.”
It added that the Governor charged the appointees to use their wealth of experience in the discharge of their engagements so as to diligently serve the people of the state and justify the confidence reposed in them.
Nasiru Yusuf Ibrahim
Kano State Governor Alhaji Abba Kabir Yusuf has declared wednesday, October 4, as Public Holiday in commoration of the birth of the noble prophet of Allah, Muhammad Peace and blessings of Allah be upon him.
KANO FOCUS reports that the declaration was contained in a statement issued by the commissioner of information and internal affairs Alhaji Baba Halilu Dantiye in the early hours of Wednesday.
Takutaha celebration
The Governor urged the people of the state to use occassion to reflect on the teachings of our noble Prophet and imbibe them in their daily affairs.
He also urged the people to pray pervently for peace and prosperity to reign in Kano and Nigeria at large.
He prayed to Allah to see us through this tough period and bless us with bumper havest in this rainy season and the coming dry farming season.
Nasiru Yusuf Ibrahim
The Kano State Private Health Institutions Management Agency (PHIMA) has sealed off a health facility, Reach Clinic for noncompliance with the law establishing the agency and standard operation guidelines.
KANO FOCUS reports that the Director General of the Agency, Prof. Salisu Ahmad announced the sealing off of the facility after leading the enforcement on the clinic situated in Gyadi-Gyadi quarters in Kano metropolis.
In a statement by the Information Officer, Ministry of Health, Ibrahim Abdullahi, the Director General said the facility was sealed off because it was opened before completing the documentation and guidelines laid down by the PHIMA, necessary for opening any private health institution.
The statement reads, “The DG stated that the information the clinic presented to the Agency was totally contrary with the record they have in possession regarding the hospital when they were invited for discussion.
“He noted with dismay the fact that the staff names the Reach clinic submitted to the PHIMA as their registered staff were not even in the state so much that some are no longer working with the clinic.
“Unfortunately, the doctors we got working at the time of our arrival at the hospital were not the ones whose names were given to us. In view of this, we deem it pertinent to close the clinic until they abide by all the rules and standard operation guidelines because they are not even permitted to start operations.
“He recalled that the law of the PHIMA that empowers it to oversee activities of the private health institutions has stipulated it that, for any centre to be opened, it must come to the Agency to complete the required documentation regarding its staff and the activities it is going to undertake.
“The DG added that with all these, such a centre wouldn’t be allowed to start operation until when the Agency goes and examine as well as assess the information submitted to them and become satisfied with.
“Reach clinic just go ahead and open the hospital without our permission despite the lapses they have. That is why we sealed off the clinic. It will remain closed until we are given the genuine information that we require and become convince with.
“The DG pointed out that Governor Abba Kabir Yusuf is much concern with the health of the people of the state, maintaining that the Governor is so committed and determined to see that the healthcare system is robust and standardized.
“He noted that since coming on board, His Excellency is being up and doing towards fulfilling the promises he made on health sector and the commitment is yielding positive results as people can attest to.
“If our amiable Governor can deny himself sleep in the night and goes out supervising health facilities what of us he entrusted to steer the wheel of healthcare system of the state? We must also not relent. We must work hard to complement to this noble effort of our leader.
“On this note, I want to call on private health institutions in the state to ensure they are operating in accordance with the standard guidelines and laws establishing the PHIMA. We will surely not hesitate to close any clinic that fails to follow due process.”
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