Tax Advisors in Nigeria – Taxing and taxation isn’t as easy as it sounds to the ordinary man in the street. Like law, which has different branches and applications in every sphere of human endeavour, taxing toes such line too, and a huge part of it requires specialization and a good deal of understudy, away from the rudimentary accounting and economics that gives a basic leeway into its understanding.
For one thing, the kind of taxing applicable to a kind of business may not be the same as happens in another sphere of business. As a matter of fact, in order to avoid being shortchanged by the system, or running into the trouble of being accused of tax evasion, there is implicit need to either be friends with, or formally hire a tax professional.
The intricacies and rigours involved with not just being enlightened on tax matters but also managing money is large enough to warrant dedication, especially for a blue chip business venture.
Who are Tax Advisors in Nigeria?
A tax advisor, also called a tax professional or tax consultant, is trained in the workings and intricacies of tax laws.
They understand the rules of government on doing business and individual taxes and advise clients on how to adhere to both federal and state tax legislation. The services of a tax advisor are usually retained in order to minimize taxation while remaining compliant with the law in complicated financial situations. Tax advisors can entail include Certified Public Accounts, tax attorneys and financial advisors.
Many business owners are wary of hiring tax consultants because of the cost implications, but the truth is that the services of a tax consultant saves a business much more than the service would cost. If it would cost N5 to hire a professional in tax matters, he would definitely save the enterprise at least N20. Either way it’s a gain for the business venture.
Most tax consultants have worked with the governments Inland Revenue Service (IRS), or are quite knowledgeable on its workings and requirements. They must also be certified, in that they must have passed certain professional examinations that border on their profession. They are well versed in the art of representing their taxpaying clients in meetings or issues regarding tax matters.
Obviously, if one has a complex tax life, with factors such as retirement savings accounts, real estate transactions, trust funds, self-employment income, a home office, income from rental properties, stock options, and so on, tax pros can be very helpful. They can also be very helpful if one works and live in different states or countries, for people who have an active investing life, or those that buy, sell, or run private business.
It is also a smart move to consult tax advisors in Nigeria when one there is a major occurrence in one’s life. Such events include when one gets married or divorced, have or adopt a child, are financially caring for dependents (which can include your parents), receive an inheritance, are widowed, lose a job, start a new job, and buy or sell a home.
Tax advice should also apply when one has a terminal illness, too. Good tax advisors can be useful not only during tax season, when they can prepare your return, but also during the entire year. They know the latest laws and rules and can answer questions and offer advice and money-saving tax strategies, such as effectively timing the sale of various assets, taking advantage of all available deductions and credits, and much more. Tax planning is the legal means of helping a client to reduce his tax liability by exploring the available deductions possible. A good tax consultant is well versed in this.