What are some of the key provisions amended in the principal Act?
Some of the key provisions amended in the Act include: Consolidated Relief Allowance (CRA) Adjusted income tax bands; A new tax table; Tax Refunds; Exemption of income from bonds issued by government and corporate entities.

Enhanced power of administration of State Boards of Internal Revenue; Introduction of presumption tax regime for the informal sector; Deleting paragraph 2 & 3 under the third schedule that hitherto exempts the official emoluments of the President, Vice President, Governors and Deputy Governors for personal income tax purposes; Strengthening the offences and penalties provisions

What are the areas of offences and penalties affected in the amendment Act?
A comparative table below clearly shows the amendments

What is the effective date of the amended Act?
The effective date which is still the commencement date as stated in the official gazette, which is 14th of June, 2011

Does it imply that the implementation of the amended provisions will commence immediately by the relevant tax authorities?

The relevant tax authorities while upholding the commencement date, 14th of June, 2011, will for administrative convenience begin implementation of the issues from 1st April, 2012. Nevertheless, the tax paying public is expected to assess, file their returns and make payments in line with the provisions of the personal income tax (amendment) Act.

How do I calculate my tax under the amended Act?
Add your income from all sources, less the consolidated relief/allowance (N200,000.00 + 20% of gross income). The balance is to be taxed after removing all statutory deductions applicable to such taxpayer as listed below: Contribution to pension; Contribution to National Housing Fund; National Health Insurance Scheme; Life Assurance Premium; Gratuities

The balance is taxed using the following method: The first N300,000.00 – 7%; Next N300,000.00 – 11%; Next N500,000.00 – 15%; Next N500,000.00 – 19%; Next N1,600,000.00 – 21%; Above N3,200,000.00 – 24%
The tax as computed above is compared to a minimum tax of 1% of gross income; whichever is higher is the tax payable.

What is minimum tax?
Minimum Tax is that tax which is charged on an income of a taxpayer where after all allowable deductions granted, there is no taxable income or where the tax payable is less than 1% of his gross income. Therefore 1% of his gross income will be taken as tax payable

Am I entitled to tax refund?
Yes, you are entitled to tax refund where on application the relevant tax authority ascertained that you actually overpaid your tax.

What are the processes for getting the refund?
The taxpayer files an application with the relevant tax authority stating the grounds of his claim which includes: Taxpayer Identification Number (TIN) as authorized for issue by Joint Tax Board; Declaration of total income from all sources related to the year the refund is being sought; actual tax paid; tax payable; overpayment claimed; period covered; date of payment; due date for payment of the tax payable.Then the tax authority scrutinizes the tax document filed by the taxpayer and where the tax authority ascertains that there is an overpayment, the taxpayer is given a refund of his excess.

How can Tax disputes be resolved under the amended Act?
Disagreements and disputes under the Act will be resolved by Tax Appeal Tribunals (TAT). Taxpayers can file a complaint directly with TAT without necessarily seeking the service of a consultant/lawyer.