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Counsel corner: Tax/Sovereign Wealth fund

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By Dayo Benson
Kindly enlighten me on whether  the following companies such as oil companies, breweries, manufacturing industries, pay taxes to the government through federal inland revenue services.

1. How is the sum total of all the taxes paid by companies shared by the government (Federal, State and L.G.A)?

2. Are the taxes part of monthly allocation shared by the three tiers of government or does the monthly allocation come from  oil revenue only?

3. What is Sovereign Wealth Fund?

Thanks.

David

Federal Inland Revenue Collects all Corporate tax in Nigeria and they pay it into consolidated account.

It is then shared among the three tiers of government namely Federal , State and Local government as non -oil revenue.

Corporate tax s part of monthly revenue to the three tiers of government and they share it because it is paid into the federation account.

Another tax that comes in for the government is excise tax which the customs collect on it’s behalf .

This is also part of duty customs pays into consolidation account which  is also  shared

these are known as non-oil revenue.

Sovereign wealth fund is a pool of money derived from a country’s reserves, which is set aside for investment     purposes that will benefit the country ‘s economy and citizens . The funding for a sovereign wealth fund SWF comes from the central bank reserves that accumulate as a result of budget and trade surpluses , and even from revenue generation from export of natural resources.

Today the sovereign wealth funds  are avenue for nation that operate them to attract investment into their countries.

The term sovereign wealth fund was introduced in 2005 , but the first SWF was introduce in 1953 by the Government of Kuwait known as Kuwait investment Authority, a commodity SWF. Kuwait took  the initiative then and invested in several areas ranging from refineries , filling station in Europe popularly called Q8.

Perhaps the constitutional bases for sovereign wealth fund  is provided in section 162 of the 1999 constitution which state that “The Federation shall maintain a special account to be called “the Federation Account” into which shall be paid all revenues collected by the Government of the Federation, except the proceeds from the personal income tax of the personnel of the Armed Forces of the Federation, the Nigeria Police Force, the Ministry or Department of government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory, Abuja.”

Journalist and FOI Act.

Please, what does the FOI Act say about the journalist right not to disclose his source of information?

PATO – Benin

The right of a journalist not to disclose his source of information is one of the professional ethics of journalism which practitioners are expected to adhere to. Apart from his editor , it is only a court of law that can compel a journalist to disclose his source of information . But with the coming of the freedom of information FOI  Act , access of journalist to information is guaranteed as long as request for it is made. This is provided in section 1 of the FOI Act which says |”

Notwithstanding anything contained in any other Act, law or  regulation, the right of any person to access or request information,. whether or not contained in any written form, which is in the custody or possession of any public official, agency or institution howsoever described, is established.

An applicant under this Act needs not demonstrate any specific interest in the information being applied for.  Any person entitled to the right to information under this Act, shall have the right to institute proceedings in the Court to compel any public institution to comply with the provisions of this Act”. The implication is that journalist would no longer have recourse to obtain information illegally and the issue of right not to disclose will not arise.

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