90% of tax issues of business owners are caused by ignorance, procrastination and lack of attention to details.

Many business owners have lost tracks of number of bank accounts they have opened.

This careless acts, expose them to fraudulent bank account officers who may pass transactions through these accounts.

Not verifying all transactions in your monthly bank account statements or outrightly ignoring it may be the pathway to bankruptcy of your business through huge tax liabilities accruing from such transactions.

Jude Limited, a medium sized company recently contracted us to process their tax clearance certificate.

Our work led to discover  how their formal account officer who has now left the bank was using their account for forex transactions without their knowledge.

Even though, they did not lose money from these transactions, they have been exposed to tax liabilities because FIRS portal has captured the transactions as theirs.

It’s going to be a lot of stress to escape the huge tax liabilities from those unauthorized transactions.

Jude Limited’s got into this mess because

  • They opened the account with intention to help the banker to meet target and not for business purposes.
  • There is no accounting system in place.
  • There is no periodic management report to assess performance and profitability.

The lesson here is for you not to learn the hard way like Jude Limited.

As will get back to work from the lockdown, right your wrong.

  • Do and audit of your bank accounts.
  • Close dormant accounts.
  • Keep proper accounting books.
  • Attend to your tax issues. Take advantage of the palliatives being offered by FIRS before it expires.

Reach out to me on 08087183003. Let’s offer you advice on the way forward.

Talk Soon.

Kayode Okunola FCA

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