Under the IFRS regime, the circular proposes clarifications as to how specific assets, expenses, and income will be acted for tax motives. It also highlights the position of Nigerian tax authority on other issues, like the tax treatment of costing and the tax devaluation of intangible assets. The change to International Financial Reporting Standards (IFRS) raises various issues in respect of the transition from one accounting standard to another and the tax treatment of amounts arising. Tax circular provision notices:
- No re-calculation of previous year income tax by first-time adopters of IFRS;
- Claims of capital allowances;
- Threshold amounts concerning property, plant and equipment (PPE);
- Deferred consideration arrangements;
- Tax treatment of intangible assets;
- Non-deductibility of professional fees and costing with respect to assets;
- Time extension to file income tax returns; and
- Information to be incorporated with income tax returns.
