13 banks pay N136.84bn tax in nine months

Thirteen commercial banks listed on the Nigerian Stock Exchange paid N136.84bn in taxes to the Federal Inland Revenue Service in the nine-month 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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