June 25, 2018

LIRS, PWC clarify taxation of loans to employees by employers (Tribune)

LIRS, PWC clarify taxation of loans to employees by employers (Tribune)

The Lagos State Internal Revenue Service (LIRS), and PriceWatercoopers (PWC), a firm that focuses on audit and assurance, tax and consulting services have explained how loans that are granted to employees by their employers can be taxed. Over time, employers have adopted various practices in the treatment of loans that were granted to their employees for tax purposes. There has been a lack of clarity regarding the taxation of benefits that arise from such loans. However, the LIRS has issued a public notice to guide taxpayers in this regard. The notice describes employee loans and seeks to explain when a Benefit-In-Kind (BIK) arises from a loan that is granted to an employee by an employer and how to ascertain the benefit that is enjoyed by the employee from the loan. Read more

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