13 banks pay N136.84bn tax in nine months

The Punch - - BUSINESS & ECONOMY - Fey­isayo Popoola

THIR­TEEN com­mer­cial banks listed on the Nige­rian Stock Ex­change paid N136.84bn in taxes to the Fed­eral in­land Rev­enue Ser­vice in the ninemonth pe­riod ended Septem­ber 30, 2019.

Data ob­tained from the fi­nan­cial state­ments of banks for the pe­riod un­der re­view showed that the amount was 17 per cent higher than the N112.68bn tax ex­pense recorded for the cor­re­spond­ing pe­riod of 2018.

An anal­y­sis of the fi­nan­cial state­ments filed by the banks on the NSE showed that Ecobank Transna­tional in­cor­po­rated paid the high­est amount of N32.05bn.

A break­down of the amount re­vealed that the cur­rent tax li­a­bil­ity was N32.06bn, which was re­duced by a de­ferred tax in­come of N6.87m.

Zenith Bank Plc recorded the sec­ond high­est amount of N25.46bn made up of N7.6bn cor­po­rate tax, N15.18bn div­i­dend tax, N1.54bn in­for­ma­tion tech­nol­ogy tax and N70m ed­u­ca­tion tax.

A de­ferred tax ex­pense of N2.02bn was de­ducted from the to­tal tax amount of N27.49bn to give N25.46bn.

Guar­anty Trust Bank Plc re­ported a tax value of N23.66bn made up of a prior year un­der-pro­vi­sion of N334.9m, de­ferred tax ex­pense of N5.3bn orig­i­nat­ing from tem­po­rary dif­fer­ences, com­pany in­come tax of N16.21bn, ed­u­ca­tion tax of N828.69m and N971.38m NITDEV levy.

A to­tal of N16.61bn tax ex­pense was re­ported by United Bank for Africa Plc.

UBA stated that it had a tax li­a­bil­ity of N4.88bn for the pe­riod un­der re­view.

Stan­bic IBTC hold­ings Plc re­ported a tax of N13.56bn, which in­cluded a cur­rent tax of N13.29bn and de­ferred tax of N263m.

Ac­cess Bank Plc com­puted a tax of N12.36bn for the nine-month pe­riod.

it recorded N6.44bn from its cor­po­rate and in­vest­ment bank­ing arm, N1.87bn from its com­mer­cial bank­ing arm, N1.43bn from its busi­ness bank­ing di­vi­sion and N2.63bn from its per­sonal bank­ing busi­ness.

FBN hold­ings Plc had a tax li­a­bil­ity of N8.19bn, which it said com­prised a cor­po­rate tax of N7.09bn, ed­u­ca­tion tax of N797m and N309m orig­i­nat­ing from tem­po­rary tax dif­fer­ences.

Fidelity Bank Plc re­ported a tax ex­pense of N1.54bn made up of N1.31bn cur­rent tax and a tech­nol­ogy levy of N230m.

The bank also paid N2m to the Po­lice Trust Fund in the pe­riod un­der re­view.

First City Mon­u­ment Bank Plc posted a tax of N1.31bn for the nine-month pe­riod.

it said the amount was made up of N78.43m NITDEV levy, N505, 000 cap­i­tal gain tax and N1.23bn cor­po­rate in­come tax.

in ad­di­tion, it would pay a min­i­mum tax of N700.82m.

Min­i­mum tax is payable by com­pa­nies hav­ing no tax­able prof­its for the year or where the tax on prof­its is be­low the min­i­mum tax.

A tax ex­pense of N642.32m was recorded by Wema Bank Plc.

The amount in­cluded N600.55m com­pany in­come tax and N50.03m NITDEV levy.

The bank also recorded a tax li­a­bil­ity of N1.01bn for the pe­riod un­der re­view.

Union Bank of Nige­ria Plc, on its part, paid a tax of N451m, com­pris­ing N256m com­pany in­come tax, N42m cap­i­tal gains tax and N153m NITDEV levy.

it, how­ever, said in line with the Com­pany in­come Tax Act, 1990, as amended, it was not li­able to pay in­come tax as it recorded a tax loss for the year.

Union Bank said it was ex­empted from pay­ing min­i­mum tax un­der the Act as it had im­ported share cap­i­tal of over 25 per cent.

No ed­u­ca­tion tax was charged be­cause the bank had no as­sess­able profit for the year.

As­sess­able profit is the por­tion of in­come that is sub­ject to tax af­ter all al­low­able de­duc­tions and ad­just­ments had been made and al­lowances claimed.

Unity Bank Plc re­ported a tax of N128.88m while it said its cur­rent tax payable was N491.27m.

Ster­ling Bank posted a tax ex­pense of N72m for the pe­riod un­der re­view.

it said the tax was for the it levy as there was no in­come tax charged for the pe­riod.

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