Head of Capital Gains Tax (CGT), Anambra State Internal Revenue Service (AIRS), Mr Emeka Anyaneto, has appealed to citizens to remit 10 per cent of their gains from sale of lands to AIRS.
Anyaneto made the appeal during an interview with newsmen in his office at AIRS.
He pointed out that the CGT is the gain on disposal of an asset, stating that fter deduction of the initial costs of the asset and agency fees, they should remit 10 per cent of the remaining gain to AIRS.
He explained that assuming one has a plot of land purchased at about 1, 000, 000 naira and wants to sell it for 1.5 million, the 500, 000, should be the person’s gain where they charge CGT.
Anyaneto urged buyers of lands to tell the sellers to pay the capital gains tax so that they would not bear penalties for not paying it.
He further explained that if it is a limited liability company that is selling the land, they should remit to the Federal Government, but as an individual, they should remit to AIRS.
The CGT Head noted that Capital Gains Tax is charged on the actual year basis, pointing out that the important thing about CGT is that it is charged on an actual year basis, meaning that if one sells today, one should remit today or tomorrow.
He also observed that it is not like direct tax, where they charge on a preceding year basis, that is, charging income for 2019 in 2020, and CGT is on that particular year.
He revealed that one of the challenges they face in the course of their work was that people were not cooperating, regretted that lack of information is their major challenge as people are not ready to tell them how much they have sold their lands.
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