Taxation is a unique profession dealing more in law, tax policies and the manner of treatment of tax elements regulated by legal pronouncements. This is quite unlike the accounting profession, which hitherto had Statement of Accounting Standards, International Accounting Standards and now, the International Financial Reporting Standards which provides how accounting elements are to be recognized, measured, reported and disclosed in financial reports and statements. The practice of tax and whatever professional advice that a tax practitioner is providing, therefore, must be in accordance with the respective pronouncements of the tax laws.
CITN Statement of Taxation Standard (STS) Three on Procedural Aspect of Filling Returns was issued and gazetted in the Federal Republic of Nigeria Official Gazette Vol. 100 of June 2013. The standard became effective from 1st January 2013. The standard sets out the applicable canons for tax practitioners on the obligation to examine or verify certain supporting data or to consider information related to another taxpayer when preparing a taxpayer’s tax return.
Statement of Taxation Standards (STS) Three is divided into five sections:
Parts 1, 2 and 3 present the standards, Part 4 requires compliance with any disclosure requirement of the Companies Income Tax Act CAP C21 of the Laws of the Federation of Nigeria 2004 as amended to date, the Personal Income Tax Act and any other relevant laws. Part 5 discloses the effective date of the Standard, which is 1 January, 2013.
Guidance on STS Three
Annual Return is a mandatory compliance for all taxpayers in Nigeria as required by the Companies Income Tax Act CAP C21 of the Laws of the Federation of Nigeria 2004 as amended to date, the Personal Income Tax Act and other extant tax laws. The Standard recommends that a member should be satisfied with the returns to which he/she associates which is correct, complete and consistent both on the face and basis of other facts known to the member. The extant laws and regulations should be consistently applied to ensure that pertinent disclosure provisions are complied with.
Members and stakeholders are invited to visit https://app.citn.org/home/tpgs to download the CITN Statement of Taxation Standards 1-9, and the Institute’s Professional Rules and Practice Guidelines.