Reps Move To Amend Companies Income Tax Act

The House of Representatives has passed for the second reading, a bill seeking amendment to 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.

Sponsored by the member representing Yenagoa/Kolokuma/Opokuma Federal Constituency of Bayelsa State, Hon. Oboku Abonsizeibe Oforji, the bill was read for the second time at plenary on Thursday.

It seeks 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 Section 33 subsection 1 and by inserting a new subsection (D) in Section 33(3).

The Section 33:3 (D) is to read; “Any company in operation that records losses in the assessment year.”

The bill seeks to amend the provision in relation to the assessment of companies for the payment of tax in each assessment year.

The emphasis is to protect the companies which are in operation but with losses from paying minimum tax.

The amendment primarily proposes exemption for such categories of companies under the Companies Income Tax Act in each assessment year.