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CAC to delist 91,843 firms for tax evasion

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By Mercy Kelani

Annual returns is essential for taxpayers to calculate their tax obligations.

The Corporate Affairs Commission (CAC) of Nigeria is taking a determined stance against tax evasion and ensuring adherence to regulations. As a consequence, an astounding 91,843 companies face removal from the CAC register due to their failure to submit annual returns. The firm resolve shown by the government institution in taking this severe measure demonstrates its dedication to ensuring business responsibility and preventing tax misconduct. Tax returns are documents that must be submitted to tax authorities, providing detailed information about income, expenses, and other relevant tax data.

They are essential for taxpayers to calculate their tax obligations, arrange payment schedules, and potentially request refunds if they have paid more taxes than necessary. Various jurisdictions require both individuals and businesses, who have income that needs to be reported, such as wages, interest, dividends, capital gains, or other profits, to file tax returns on an annual basis. The CAC, through a publication on its official website, has disclosed the names of the companies that will be removed from its listings.

All affected firms would be duly notified prior to any measures taken.

Currently, number of delisted companies stands at 91,843, slightly lower than the initial count of 94,581 which was announced back in August. It is worth noting that this reduction falls below the previously mentioned figure of 100,000 companies that were marked for removal, highlighting the strict approach being taken by the CAC. In July, a declaration was made by Garba Abubakar, the Registrar-General and CEO of the CAC, stating that around 100,000 registered businesses would be removed from the commission’s database due to their neglect in filing annual returns.

Abubakar stressed the significance of complying with section 692 of the Companies and Allied Matters Act (CAMA) of 2020, assuring that all affected companies would be duly notified prior to any measures being taken. The Commission would like to inform the public that the list of Companies failing to adhere to the regulations outlined in the Companies and Allied Matters Act 2020, specifically regarding updated annual returns, is now prepared for publication. This notification follows the earlier notice published on August 2, 2023, regarding the commencement of removing these Companies from the Register of Companies.

Delisted firms are prohibited from conducting any business activities.

Section 692 of the Act provides the basis for this publication. On December 5, the CAC released a statement reiterating its determination to de-register companies that fail to adhere to the annual return requirements outlined in the CAMA 2020. To avoid being removed, companies who have already submitted their annual returns are strongly advised to verify their removal from the delisting list by visiting the commission’s official website, where the updated list can be accessed.

Also, the CAC has provided a framework for companies that have been mistakenly placed on the list to fix the issue. If a company has already submitted complete annual returns but still finds itself on the list, it must send an email to [email protected] within a month and include evidence of filing. Moreover, it’s important to note that companies taken off the register are prohibited from conducting any business activities until the Federal High Court grants their reinstatement.

Firms earning a revenue below N30,000 are not required to file tax returns.

In Nigeria, the taxable year follows the fiscal year and runs from January 1 to December 31. The relevant tax authority, as per the CAC, mandates the submission of tax returns within 90 days after the conclusion of the fiscal year. Companies earning a revenue below NGN 30,000 are not required to file tax returns. Additionally, by January 31st of each year, employers must submit an annual report detailing the salaries and benefits given to their employees for the previous year.


Related Link

CAC: Website


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AN-Toni
Editor
2 months ago

CAC to delist 91,843 firms for tax evasion. – Annual returns is essential for taxpayers to calculate their tax obligations. – Express your point of view.

SarahDiv
Member
2 months ago

The CAC’s move to delist companies for tax evasion is a strong measure reinforcing the importance of business responsibility and tax compliance. The reduction in the number of delisted companies from the initial count shows a strict approach. It’s crucial for businesses to adhere to annual return requirements outlined in CAMA 2020 to avoid delisting, and the CAC’s framework for addressing errors provides a fair process. This initiative aligns with efforts to ensure accountability and financial transparency in the Nigerian business landscape.

Adeoye Adegoke
Member
2 months ago

That’s quite a significant number of firms being delisted for tax evasion. It’s crucial for businesses to fulfill their tax obligations and contribute to the development of the country. Annual returns play a vital role in this process as they help taxpayers calculate their tax liabilities accurately.
Ensuring that businesses submit their annual returns not only promotes transparency but also helps in maintaining a fair and equitable tax system. By accurately reporting their financial information, businesses can contribute their fair share of taxes, which in turn supports the government in providing essential services and infrastructure for the benefit of all citizens.
Delisting firms for tax evasion sends a strong message that non-compliance will not be tolerated. It serves as a deterrent for others who may be considering similar actions. It’s important for businesses to understand the significance of fulfilling their tax obligations and the consequences of failing to do so.
Overall, the delisting of firms for tax evasion and the emphasis on annual returns highlight the importance of tax compliance and the role it plays in the overall development of the economy. It’s essential for businesses to understand their responsibilities and contribute their fair share towards the progress of the nation.

Kazeem1
Member
2 months ago

Making sure companies carry out their obligations is a good start with the CAC’s campaign against tax evasion. In keeping with the country’s financial openness, it emphasizes the significance of adhering to tax legislation.

Taiwo
Member
2 months ago

For evading taxes, the CAC will delist 91,843 companies. In order to determine their tax responsibilities, people must file annual returns.A fair and equitable tax system is maintained by requiring firms to file their annual returns, which also fosters openness. Through precise financial reporting, companies can pay their fair share of taxes.When companies are removed from the list due to tax evasion, it is a clear indication that violation will not be accepted.