Debmus Associates

Debmus Associates Debmus Associates provides tax consultancy, accounting and Corporate services.

28/02/2026

COMFORT ZONE IS A BEAUTIFUL PLACE, BUT NOTHING EVER GROW THERE

TECHNICAL NOTE: PENALTY FOR FAILURE TO FILE ANNUAL RETURNS UNDER THE NIGERIA TAX ACTPursuant to the provisions of the Ni...
21/02/2026

TECHNICAL NOTE: PENALTY FOR FAILURE TO FILE ANNUAL RETURNS UNDER THE NIGERIA TAX ACT

Pursuant to the provisions of the Nigeria Tax Act (NTA), failure to file statutory annual returns within the prescribed timeline now attracts mandatory administrative penalties.

The penalty framework is structured as follows:

1️⃣ Initial Fixed Penalty – A statutory sum becomes immediately payable upon default after the due date.

2️⃣ Continuing Default Penalty – An additional daily penalty accrues for each day the failure continues. This runs from the first day after the statutory deadline until actual filing.

3️⃣ Tax-Based Penalty (Where Applicable) – Where tax is assessed as payable, the Act further provides for a penalty computed as a percentage of the outstanding tax liability.

4️⃣ Statutory Interest – Interest accrues on unpaid tax from the due date at the prescribed rate until full settlement, independent of administrative penalties.

It is important to note that:

The obligation to file is independent of tax payable.

Nil returns do not exempt a company from filing obligations.

The penalty regime is largely non-discretionary.

Accrual continues until compliance is regularised.

Companies are therefore advised to review their tax compliance calendars and ensure strict adherence to statutory filing timelines to mitigate escalating exposure.

01/02/2026
𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 𝐨𝐫 𝐏𝐀𝐘𝐄1. Exempts individuals earning the national minimum wage or less2. Annual gross income up to ...
30/01/2026

𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 𝐨𝐫 𝐏𝐀𝐘𝐄

1. Exempts individuals earning the national minimum wage or less

2. Annual gross income up to N1,200,000 (translating to about N800,000 taxable income) is exempt

3. Reduced PAYE tax for those earning annual gross income up to N20 million

4. Gifts (exempt)

5. Pension contribution to PFA

6. National Health Insurance Scheme

7. National Housing Fund contributions

8. Interest on loans for owner-occupied residential housing

9. Life insurance or annuity premiums

10. Rent relief – 20% of annual rent (up to N500,000)

𝐏𝐞𝐧𝐬𝐢𝐨𝐧𝐬 & 𝐆𝐫𝐚𝐭𝐮𝐢𝐭𝐢𝐞𝐬 – 𝐄𝐱𝐞𝐦𝐩𝐭

11. Pension funds and assets under the Pension Reform Act (PRA) are tax-exempt.

12. Pension, gratuity or any retirement benefits granted in line with the PRA

13. Compensation for loss of employment up to N50 million

14. Sale of an owner-occupied house

15. Personal effects or chattels worth up to N5 million

16.Sale of up to two private vehicles per year

17. Gains on shares below N150 million per year or gains up to N10 million

18. Gains on shares above exemption threshold if the proceed is reinvested

19. Pension funds, charities, and religious institutions (non-commercial)

𝐂𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 (𝐂𝐈𝐓) – 𝐄𝐱𝐞𝐦𝐩

20. Small companies (turnover not more than N100 million and total fixed assets not more than N250 million) pay 0% tax

21. Eligible (labelled) startups are exempt

22. Compensation relief – 50% additional deduction for salary increases, wage awards, or transport subsidies for low-income workers

23. Employment relief – 50% deduction for salaries of new employees hired and retained for at least three years

24. Tax holiday for the first 5-years for agricultural businesses (crop production, livestock, dairy etc)

25. Gains from investment in a labeled startup by venture capitalist, private equity fund, accelerators or incubators

𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝐋𝐞𝐯𝐲 – 𝐄𝐱𝐞𝐦𝐩𝐭

26. Small companies are exempt from 4% Development Levy
𝐖𝐢𝐭𝐡𝐡𝐨𝐥𝐝𝐢𝐧𝐠 𝐓𝐚𝐱 – 𝐄𝐱𝐞𝐦𝐩𝐭

27. Small companies, manufacturers and agric businesses are exempt from withholding tax deduction on their income

28. Small companies are exempt from deductions on their payments to suppliers

𝐕𝐚𝐥𝐮𝐞 𝐀𝐝𝐝𝐞𝐝 𝐓𝐚𝐱 (𝐕𝐀𝐓) – 0% 𝐨𝐫 𝐄𝐱𝐞𝐦𝐩𝐭

29. Basic food items – 0% VAT

30. Rent – Exempt

31. Education services and materials – 0% VAT

32. Health and medical services

32. Pharmaceutical products – 0% VAT

34. Small companies (N100m turnover) are exempt from charging VAT

35. Diesel, petrol, and solar power equipment – VAT suspended or exempt

36. Refund of VAT on assets and overheads to produce VATable or 0% VAT goods and services

37. Agricultural inputs – fertilizers, seeds, seedlings, feeds, and live animals

38. Purchase, lease or hire of equipment for agric purposes

39. Disability aids – hearing aids, wheelchairs, braille materials

40. Transport – shared passenger road transport (non-charter)

41. Electric vehicles and parts – exempt

42. Humanitarian supplies – exempt

43. Baby products

44. Sanitary towels, pads or tampons

45. Land and building

𝐒𝐭𝐚𝐦𝐩 𝐃𝐮𝐭𝐢𝐞𝐬 – 𝐄𝐱𝐞𝐦𝐩𝐭

46. Electronic money transfers below N10,000

47Salary payments

48. Intra-bank transfers

49. Transfer of Transfers of government securities or shares

50. All documents stocks and shares

17/01/2026

If you know how to use SAGE 50 Accounting Software, reply to this email: [email protected]

08/01/2026

What is the solution, when someone is trying to provide a good Idea to a leader that has a carefree attitude, and has also been beclouded by a clique in an organisation, or who is afraid to do the right thing to avoid offending his superior?

This is a very real organisational problem, especially in public institutions and highly hierarchical organisations. The solution is not one-size-fits-all; it requires strategy, emotional intelligence, and self-preservation. I’ll break it down clearly and practically.

1. First, Understand the Real Problem (Diagnosis)
What you described usually involves three overlapping issues:
Carefree leadership – the leader lacks urgency, ownership, or vision.
Clique capture – a small inner circle controls access, information, and influence.
Fear-driven leadership – the leader avoids correct decisions to stay in the good books of a superior.
👉 In such a situation, good ideas fail not because they are bad, but because:
They threaten existing power structures,
They expose incompetence,
Or they create political risk for the leader.
So, the solution is not to argue harder, but to work smarter.

2. Reframe How You Present the Idea (Very Important)
❌ Do NOT present the idea as “the right thing”
Leaders in fear-mode don’t respond to morality.

✅ Present it as:

Risk reduction
Protection of the leader
Alignment with the superior’s interest
A way to avoid future trouble
Example Reframing
Instead of:
“This will improve efficiency and transparency.”
Say:
“This will help ensure we don’t get queried by auditors / the ministry / the governor / the board.”
Fear-driven leaders respond to self-preservation, not excellence.
3. De-personalise the Idea
If a clique exists, your name attached to the idea can be the problem.
Practical tactics:
Attribute the idea to external authorities:
“This is now best practice in Lagos / FIRS / OECD / World Bank”
Reference documents, circulars, or laws
Say:
“I came across a provision / directive / case study…”
👉 Once the idea looks inevitable, resistance reduces.
4. Use the “Pilot” Strategy
Carefree or fearful leaders hate commitment but tolerate experiments.
Propose:
A small pilot
Limited scope
No public announcement
No political exposure
Example:
“Let’s test it in one unit for 30 days. If it doesn’t work, we quietly drop it.”
This lowers the psychological risk for the leader.
5. Work Around the Clique, Not Against It
❌ Never confront or expose a clique directly.
That is career su***de.
✅ Instead:
Identify one neutral or respected member of the clique

Sell the idea to them first
Let them own it
Hard truth:
In such organisations, ideas move through people, not logic.
6. Protect Yourself: Document, Don’t Fight
When leadership is careless or compromised:
Put your ideas in writing (memos, emails, reports)
Be professional and factual
Avoid emotional language
This achieves two things:
You have institutional memory on record
You are protected if things go wrong later
👉 Sometimes your role is not to “win”, but to be seen as having warned appropriately.
7. Know When to Stop Pushing
This is crucial.
If:
The leader is consistently evasive,
The clique blocks everything,
Your ideas are ignored or stolen,
Then the organisation has chosen stagnation.
At that point, the best solutions are:
Reduce emotional investment
Do your job excellently
Build external relevance (skills, networks, reputation)
Prepare for redeployment, promotion elsewhere, or exit
Wisdom is knowing when to push and when to preserve yourself.
8. A Hard Truth (But an Important One)
You cannot save an organisation whose leadership benefits from dysfunction.
But you can:
Preserve your integrity,
Protect your professional reputation,
Position yourself for future leadership or opportunities.
9. One Powerful Question to Ask Yourself
Before pushing any idea, ask:
“Does this idea help the leader feel safer or more exposed?”
If it makes them feel exposed, repackage it or pause it.
Final Thought
In such environments:
Ideas need strategy
Truth needs timing
Integrity needs protection

04/01/2026
Tax planning, fam! 😎 Let's get that tax burden lighter, yeah? Here are a few ideas:1. *Utilize tax deductions*: Claim al...
14/12/2025

Tax planning, fam! 😎 Let's get that tax burden lighter, yeah? Here are a few ideas:

1. *Utilize tax deductions*: Claim all eligible expenses, like charitable donations, medical bills, and business expenses.
2. *Invest in tax-efficient vehicles*: Consider pension schemes, tax-free investments, or dividend-paying stocks.
3. *Take advantage of tax reliefs*: Look into capital allowances, loss relief, and other tax breaks specific to your situation.

Want more specific advice or examples?

13/12/2025

IMPORTANT TAX UPDATE – NIGERIA TAX ACT (EFFECTIVE JANUARY 2026)

Many people are not yet aware that the Nigeria Tax Act (NTA) contains specific provisions designed to lawfully protect certain extra incomes from being chargeable to tax.

However, there is another side to this development.

From January 2026, a larger portion of personal income will become subject to tax, particularly for high-income earners. The new framework is structured to ensure fairness and equity in taxation:

Low-income earners will enjoy reliefs and protections — no cause for alarm.

High-income earners, however, will feel the impact more, as more income streams will fall within the tax net.

What this means:

Proper tax planning will become more important than ever.

Understanding allowable reliefs, exemptions, and income classifications will help taxpayers stay compliant without paying more tax than necessary.

Ignorance of the law will no longer be an excuse.

Education is key.
As implementation draws closer, taxpayers—especially professionals, business owners, and senior employees—must begin to learn, prepare, and plan ahead.

More insights and explanations are coming soon.

Please share this post so more people can learn and prepare early.

This practice from LASU lecturers should be discouraged. This does not promote academic excellency. Forcing student to b...
06/11/2025

This practice from LASU lecturers should be discouraged. This does not promote academic excellency. Forcing student to buy textbooks by tying such to the marks that will be awarded is nothing but extortion. The lecturers are now using the power to grade students as a weapon to rub them

Address

8, Duduyemi Street, Off Karimu Laka Street, Egbeda, Alimosho
Lagos

Opening Hours

Monday 09:00 - 17:00
Tuesday 09:00 - 17:00
Wednesday 09:00 - 17:00
Thursday 09:00 - 17:00
Friday 09:00 - 17:00
Saturday 09:00 - 15:00

Telephone

+2348161177247

Alerts

Be the first to know and let us send you an email when Debmus Associates posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Business

Send a message to Debmus Associates:

Share