Errors in Finance Act 2020 will be corrected- FG

The Fiscal Policy Reforms Committee has promised to correct errors that may erupt from the  implementation of the Finance Act 2020 lif fiscal enactment is needed to adjust the 2021 Appropriation Act.
The intimation was made by the Senior Special Assistant to the President on Finance and Fiscal Matters and Secretary of the committee, Bose Oyetunde during a virtual stakeholder consultation meeting on Tuesday.
Recall that the  Federal Government, in the Finance Act 2020, introduced a 50% reduction in the minimum tax rate.
Acccording to Oyetunde, the government had already reduced the minimum tax rate from 0.50% to 0.25% with a view to cushioning the effects of covid-19 pandemic on businesses.
“There may be some fiscal enactment before the middle of the year to adjust the 2021 Appropriation Act and if so, the Fiscal Policy Reforms Committee will take the opportunity to correct any perceived errors in the Finance Act 2020.
“We use criminal law to back tax provisions and the constitution does not allow us to penalise people for crimes committed that are not crimes at the time they were performed,” he said.
Mr. Sanya Gbonjubola, Director, Tax Policy and Advisory Department, FIRS, added that there would be no tax refunds citing that the proponent of the clause was to give relief for two years to taxpayers “in view of what everyone is facing.”
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“In couching the law, there was some error. What has happened is that the language of the law has effectively reduced the two years to one year.
“It happens that tax laws are never made in retrospect and any provision you make in retrospect, whether against or for the taxpayer, is ab initio.
“So what has happened is the intended two years has shut down to one year,” he added

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