pencom

TAX AVOIDANCE THROUGH ADDITIONAL VOLUNTARY CONTRIBUTION TO PENSION – PENCOM FINALLY ACTS

The National Pensions Commission (Pencom) last week issued a circular to all licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to give directives on acceptable withdrawals from the Voluntary Contributions (VC) by employees before retirement. This circular is coming on the heels of the controversies generated by publications by the Lagos Internal Revenue Service (LIRS) and the Joint Tax Board (JTB) in August 2017, informing the public that AVCs will not be acceptable as non-taxable deduction in arriving at the tax payable by employees, unless evidence is provided to prove that no withdrawals were subsequently made by the employees.

TAX AVOIDANCE THROUGH AVC