The House of Representatives is set to debate the general principles of a bill seeking to amend the Companies Income Tax to protect companies operating in losses from paying the minimum tax.
The proposed legislation is titled, “A Bill for an Act to Amend the Companies Income Tax Act to Provide Adequate Security and Guarantee for Businesses and Companies in Relation to Payment of Minimum Tax Upon Losses in each Assessment Year and for Related Matters.”
Sponsored by Oboku Oforji, the member representing Yenagoa/Kolokuma/Opokuma Federal Constituency of Bayelsa State, the bill was read on the floor of the House for the first time at a plenary session a fortnight ago.
A copy of the bill obtained by newsmen revealed that the proposed law sought to amend Section 33 of the Principal Act by deleting the phrase “Results in a loss or where a company’s ascertained total profits.”
In the amendment, a sub-section was inserted to read in the place of the deleted phrase, “Any company in operation that records losses in the assessment year.”
In the explanatory note, the lawmaker noted that the bill sought to amend the provision in relation to the assessment of companies for the payment of tax in each assessment year.
The lawmaker noted that when passed, the bill would ensure fair taxation on companies and made them competitive for the good of the nation’s economy.
