The Executive Secretary/Chief Executive of the Financial Reporting Council (FRC) Mr. Jim Obazee, has described as needless the arguments surrounding plans to get religious organisations in the country to pay taxes and render proper accounts, insisting there is no going back on the policy.
The FRC executive, who made this clarification at the media retreat with Finance Correspondents and Business Editors in Akodo, Lagos, on Saturday, explained that it was no longer business as usual for religious groups and other organisations that fell within the not-for-profit category. He described not-for- profit organisations as entities normally without transferable ownership interests and were organised and operated exclusively for social, educational, professional, religious, health, charitable or any other not-for-profit purposes.
He explained further that the income of not-for-profit, registered under the FRC Act, was exempted from income tax, noting however, that business subsidiaries that were set up by charities were usually treated in the same manner as any other companies. His words: “The income of these business subsidiaries is subject to income tax and should be rightly so reported, accounted and disclosed. This is the practice in the United Kingdom, Singapore and other developed economies of the world,” he said.
He regretted that financial statements presented by these entities in the country were not uniform and comparable, thus making comparison and accountability difficult. To this end, he pointed out that FRC would be meeting with the Federal Inland Revenue Service (FIRS), Corporate Affairs Commission (CAC) and the leadership of the entities to expose the technicalities of the financial reporting requirements.
“It has been noticed that a number of entities operating on commercial lines, within charity are claiming tax exemption on their income on the ground that the totality of the outfits are charitable institutions. The claim when made in respect of an activity carried out on commercial lines is contrary to the intention of the provisions of the law and put the assets of the charitable purpose at significant risk,” he said.
NECO Shifts Exam Over #EndSARS Protest
The National Examination Council, NECO, has announced the rescheduled of one of the practical examinations supposed to hold in October till the next month.
This was contained in a statement made available to newsmen on Sunday, October 18, by the Head, Information and Public Relations Division for the Nigerian exam body, Mr. Azeez Sani.
He announced that the Paper I Computer Studies Practicals examination which was supposed to be taken on Monday, October 19 is now delayed till November 16, 2020.
Sani revealed that the postponement is a result of the ongoing #EndSARS protests across the country, particularly the blockage of movement of transport at the entrance gate into Benin City, the Edo state capital.
He noted further that the truck conveying NECO examination materials had left its take-off point two days earlier to deliver to some states but has been held up in the ‘blockage.
FG, ASUU Meeting Over IPPIS, UTAS End In Deadlock
The meeting between the Federal Government and the Academic Staff Union of Universities (ASUU) on Thursday ended in a deadlock.
Although some agreements were reached at the meeting, the meeting is set to reconvene on Wednesday, October 21, 2020, by 3.00 pm after the Federal Executive Council (FEC) meeting for ASUU to report back on the decision of its NEC.
In a bid to end the strike, the federal government agreed to release N30billion for payment of arrears of earned academic allowance to the university lecturers.
The communiqué issued at the end of the meeting revealed that the release of N20 billion funds for revitalisation of public universities will be payable by the end of January 2021.
On the issue of Earned Academic Allowances(EAA), which had accumulated to N40 billion since November 2019, the Accountant General of the Federation (AGF) made a commitment to release N30 billion on or before November 6, 2020.
He said the remaining N10 billion would be spread equally over the two tranches to be paid in May 2021 and February 2022, respectively.
The communiqué also revealed that ASUU agreed to take the offer to its members for consideration and revert by Wednesday, October 21, 2020.
The issue of the implementation of the Integrated Payroll and Personnel Information System (IPPIS) almost stalled the meeting as the federal government asked that IPPIS be allowed to operate in the interim until the test run on UTAS is concluded.
But ASUU insisted on payment of outstanding salaries on the old GIFMIS platform before full implementation of UTAS.
BREAKING: FG, ASUU Meet Today To Resolve Strike
In a bid to end the ongoing industrial action by lecturers of universities, the Academic Staff Union of Universities (ASUU) will be meeting the federal government today.
Minister of Labour and Employment, Dr Chris Ngige, will lead the government delegation.
This was made known in a statement by the Deputy Director of Press and Public Relations at the ministry, Mr Charles Akpan.
ASUU had embarked on an indefinite industrial action following its opposition to the government’s move to enforce the use of the Integrated Personnel and Payroll Information System for salary payment (IPPIS).
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