Question 1

What does a tax consultant do that my accountant does not?

Accepted Answer

A chartered tax practitioner interprets tax law and defends your position. That means advising on how CIT, VAT, WHT and PAYE apply to specific transactions, reviewing exposure before the tax authority finds it, and representing you in audits, objections and appeals.

Question 2

Can you represent us in a tax audit or investigation?

Accepted Answer

Yes. We manage the entire process — responding to queries, reconciling the authority's position, preparing schedules and supporting evidence, filing objections and appearing on your behalf until the matter is concluded.

Question 3

We have received a large assessment we disagree with. What can be done?

Accepted Answer

You generally have 30 days from service of a notice of assessment to file a formal objection. We review the basis of the assessment, prepare a reasoned objection with supporting computations, and negotiate through reconciliation meetings or, where necessary, the Tax Appeal Tribunal.

Question 4

What is a tax health check?

Accepted Answer

A structured review of your filings, remittances, records and contracts to identify exposure, unclaimed reliefs and process gaps — before the tax authority does. You receive a written report with a prioritised action plan.

Question 5

Do you advise on transfer pricing?

Accepted Answer

Yes. We advise on intercompany pricing policies, prepare and review transfer pricing documentation, and support the annual declarations and disclosures required by the Nigerian transfer pricing regulations.

Question 6

Do you advise on the tax treatment of specific contracts?

Accepted Answer

Yes. Reviewing a contract before signature is one of the cheapest tax interventions available — we advise on WHT, VAT, permanent establishment and deductibility implications while the terms can still be changed.

Question 7

When are company income tax returns due?

Accepted Answer

Within six months of your financial year end, or within eighteen months of incorporation for a new company — whichever comes first.

Question 8

Do I need to register for VAT?

Accepted Answer

All companies must register for VAT. Businesses supplying taxable goods and services charge VAT at 7.5% and file monthly returns by the 21st of the following month, even where no VAT was collected.

Question 9

How do I obtain a Tax Clearance Certificate?

Accepted Answer

A TCC is issued once the tax authority is satisfied that returns have been filed and assessments settled for the relevant preceding years. We prepare the filings, settle open assessments and follow the application through the tax office.

Question 10

What is withholding tax and who deducts it?

Accepted Answer

Withholding tax is an advance tax deducted at source by the payer on qualifying payments such as contracts, rent, dividends and professional fees, then remitted to the relevant tax authority with a credit note issued to the payee.

Question 11

My company has never filed returns. How bad is it?

Accepted Answer

Recoverable. We reconstruct the position for the outstanding years, file the returns, apply for waiver of avoidable penalties where grounds exist, and agree a settlement or payment plan with the authority. Voluntary regularisation is always cheaper than enforcement.

Question 12

What penalties apply for late tax filing?

Accepted Answer

Penalties and interest apply to both late filing and late payment, and vary by tax type. Continued default can lead to best-of-judgement assessments and enforcement action, so early regularisation is far cheaper.

Question 13

Can you take over our monthly filings entirely?

Accepted Answer

Yes. We run your compliance calendar — monthly VAT, PAYE and WHT returns, annual CIT returns and TCC renewals — and send you confirmation of each filing with the evidence of remittance.

Question 14

Do you prepare payroll and PAYE schedules?

Accepted Answer

Yes. We compute PAYE, pension, NHF, NSITF and ITF obligations and prepare the schedules required for monthly remittance and the annual employer returns.

Question 15

Is tax planning legal in Nigeria?

Accepted Answer

Yes. Tax planning uses the reliefs, allowances, incentives and structuring options the law provides. It is fundamentally different from evasion, which we never engage in. Every position we recommend is documented so it can be defended.

Question 16

How can we legitimately reduce our tax cost?

Accepted Answer

Common levers include properly claimed capital allowances on qualifying assets, correct treatment of deductible expenses, loss relief, available exemptions and incentives, efficient group and remuneration structures, and timing of income and expenditure.

Question 17

What is pioneer status and do we qualify?

Accepted Answer

Pioneer status grants a tax holiday to companies in designated industries under the Industrial Development (Income Tax Relief) Act. We assess eligibility, prepare the application to the NIPC and support you through the approval process.

Question 18

When is the right time to start tax planning?

Accepted Answer

Before the transaction — not at year end. Structure, contract terms and asset acquisition decisions determine the tax outcome, and most of them cannot be improved retrospectively.

Question 19

Can you help with double taxation on cross-border payments?

Accepted Answer

Yes. We advise on the application of Nigeria's double taxation treaties, treaty relief on withholding rates and the documentation required to claim it.

Question 20

What does a feasibility study include?

Accepted Answer

Market and demand analysis, technical and operational requirements, capital and operating cost estimates, financial projections with sensitivity analysis, risk assessment and a clear recommendation — in a format lenders and investors accept.

Question 21

Can you help us prepare a business plan for financing?

Accepted Answer

Yes. We prepare bankable business plans with validated assumptions, three-to-five year projections and the supporting schedules banks and development finance institutions request.

Question 22

Do you support corporate governance and board reporting?

Accepted Answer

Yes. We help design governance structures, board and committee charters, delegation of authority frameworks and management reporting packs.

Question 23

Can you help improve our internal processes?

Accepted Answer

Yes. We map current processes, identify control gaps and inefficiencies, and implement revised procedures with clear ownership and reporting.

Question 24

Who needs NUPRC registration?

Accepted Answer

Any company intending to provide services or operate in the upstream, midstream or downstream petroleum sector requires the relevant permit for its service category before it can bid or operate.

Question 25

What is PENCOM compliance and who needs it?

Accepted Answer

Employers with three or more employees must remit pension contributions and obtain an annual Pension Compliance Certificate. It is a standard requirement in both public and private sector tenders.

Question 26

What is ITF registration?

Accepted Answer

Employers with five or more employees, or with an annual turnover of ₦50 million or more, must contribute 1% of annual payroll to the Industrial Training Fund and obtain an ITF compliance certificate.

Question 27

What is BPP registration for?

Accepted Answer

The Bureau of Public Procurement maintains the national contractors database. Registration and a valid Interim Registration Report are required to bid for Federal Government contracts.

Question 28

What is NSITF registration?

Accepted Answer

Employers must register under the Employees' Compensation Act and remit 1% of monthly payroll to the NSITF, which issues the compliance certificate required in most tenders.

Question 29

Do you still handle company registration?

Accepted Answer

Yes, as a supporting service for our advisory and tax clients. As a CAC accredited agent we register business names, limited liability companies, partnerships and incorporated trustees.

Question 30

How long does registration take?

Accepted Answer

A business name is typically 3 to 7 working days and a limited liability company 5 to 10 working days, subject to CAC portal availability. Incorporated Trustees take longer because of the statutory advertisement requirement.

Question 31

What is the difference between a business name and a limited liability company?

Accepted Answer

A business name has no separate legal personality — the proprietor is personally liable. A limited liability company is a separate legal person, can own assets and contract in its own name, and members' liability is limited to unpaid share capital.

Question 32

Do you file annual returns and post-incorporation changes?

Accepted Answer

Yes. We file annual returns and process changes of directors, shareholders, company name and business objects, and obtain status reports and certified extracts.

Question 33

Can a foreigner own a Nigerian company?

Accepted Answer

Yes. A company with foreign participation must be incorporated in Nigeria, register with the NIPC, obtain a business permit and meet the higher share capital requirement applicable to companies with foreign shareholding.

Question 34

Where are your offices located?

Accepted Answer

Our head office is at 3 Dapo Bode Thomas Street, Off Montgomery Road, Yaba, Lagos, with branches at No. 1 Commisional Road, Off Refinery Road, Warri, Delta State and No. 152 Tombia Street, G.R.A Phase 1, Port Harcourt, Rivers State.

Question 35

How do I start an engagement?

Accepted Answer

Send us a message through the contact form, email towageconsultingltd@gmail.com or chat with us on WhatsApp at 0813 441 5540. We will schedule a consultation and issue a written proposal.

Question 36

How are your fees determined?

Accepted Answer

Professional fees depend on the scope, complexity and turnaround required, and statutory fees are billed at cost. Every engagement begins with a written fee quote before work starts.

Question 37

Is the first consultation really free?

Accepted Answer

Yes. The initial consultation to understand your position and scope the work carries no fee or obligation.

Question 38

How long has the firm been in practice?

Accepted Answer

The practice has over nine years of experience serving clients across multiple sectors, led by Innocent Akhere Onwugbonu, FCA, FCTI.

Question 39

Do you work with small businesses and startups?

Accepted Answer

Yes. A large part of our practice is supporting startups and growing SMEs with tax registration, filings and planning as they scale.

Question 40

Is my information kept confidential?

Accepted Answer

Yes. All engagements are governed by professional confidentiality obligations under the ICAN and CITN codes of ethics, and sensitive matters are handled by partners directly.

Frequently Asked Questions

Tax Consulting & Advisory

Tax Compliance & Filing

Tax Planning & Strategy

Business & Management Consulting

Regulatory & Statutory Compliance

Corporate & CAC Services

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