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.