Thursday, 11 June 2020


The World United Consumer Organization in Collaboration with OSUYA & OSUYA LAW FIRM will hold a conference on Tuesday, 9th June 2020 between 11am – 1pm.
The conference focuses on the increased need for strategic planning in every facet of human lives, from government institutions, the private sector, non-governmental Organizations as well as consumers of medical services.
This conference has particularly singled out the healthcare industry as its focus; creating an online platform for discourse of topical issues ranging but not limited to medicine, ethics and law.
The selected topics are holistic and they cover the various segments which represents the many divides in our communities. The crop of speakers represents the very finest to do justice to the topics.
Note: This conference will be too great, one to miss, ensure you make yourself available

Friday, 25 January 2019

MATRIMONIAL CAUSES ACTIONS IN NIGERIA





Matrimony is one of the most celebrated acts globally, where the union between a couple is legally recognized, more often than not – for life or till divorce takes a course in the relationship between the parties.[1]         
Where parties are considering a divorce, it is usually expected of couples to resolve their differences by way of alternative dispute resolution mechanisms. However, where such differences cannot be resolved, parties may wish to bring a Matrimonial Cause action to resolve differences either for the purposes of preserving or spifflicating the marriage.
In instituting a matrimonial cause action, it is important to pay attention to the applicable laws. The applicable laws as relates to Matrimonial Causes in Nigeria are the Matrimonial Causes Act 2004 (hereafter MCA), the Matrimonial Causes Rules 1983 and of course, Case Law. The provisions of the Matrimonial Causes Act are however only applicable to valid marriages conducted in pursuance with the Act.
The High Court of the Federal Capital Territory or State has jurisdiction to entertain Matrimonial Cause action and is taken to be one Division for the purposes of Matrimonial Cause actions.  This explains why a person who is domiciled in Ogun State, Nigeria may institute proceedings in any High Court within Nigeria, whether or not he is resident in such state. See: ADEGOROYE v. ADEGOROYE and Section 2(3) of the MCA.      
The MCA makes provision for several reliefs that can be obtained by the Petitioner in a Matrimonial Cause action. These reliefs are provided under Section 114 of the MCA, viz:        

1.      DISSOLUTION OF MARRIAGE
Dissolution of marriage can be granted on just one ground i.e, that the marriage has broken down irretrievably as per section 15(1) of the MCA. Any of the following facts below can be used to satisfactorily establish this ground:
a.      The respondent has willfully and persistently refused to consummate the marriage. 
b.      The respondent has committed adultery and the petitioner finds it intolerable to live with him/her.
c.       Since the marriage, the respondent has behaved in a way that the Petitioner cannot reasonably be expected to live with him/her.
d.     The respondent has deserted the Petitioner for a continuous period of at least one year immediately preceding the filing of the petition. 
e.      The parties have been living apart for a continuous period of two (2) years immediately preceding the petition with no objection by the Respondent to the grant of a decree of dissolution.
f.        The parties have been living apart for three years immediately preceding the petition.
g.      Failure of the respondent to comply with a decree of restitution of conjugal rights after one year of the Court Order.
h.      Presumption that the Respondent is dead because he has been absent for such a time and in such circumstances as to provide reasonable grounds to prove death.


2.      NULLITY OF VOID MARRIAGE           
Another relief available under the MCA is the nullity of void marriage relief.  Here, the petition is brought on the basis that the marriage is non-compliant with the MCA.          
Such non-compliance is usually based on any of the following:        
a.      Either of the parties at the time of marriage was lawfully married to some other person. section 35 of the MCA.
b.      The parties are within the prohibited degree of consanguinity and affinity. See section 35 of the MCA.
c.       The marriage is invalid as it fails to comply with the requirements of solemnization. See section 33(2) of the MCA.
d.     There is the absence of real consent of the parties to the marriage because the consent was obtained by fraud, mistake.
e.      Either party is not of a marriageable age (21 years). See section 3 of the MCA.      


3.      NULLITY OF VOIDABLE MARRIAGE
This is similar to the relief immediately mentioned above, but distinct in the sense that, the marriage is validly conducted until set aside by a court.     
Worthy to note is the fact that only a person aggrieved can bring a petition for its nullity. The grounds for filing a petition for nullity of a voidable marriage are:
a.      Either party at the time of the marriage was incapable of consummating the marriage. See section 35 and 36 of the MCA.
b.      Either party at the time of the marriage is of unsound mind or mentally defective, or subject to recurrent attacks of insanity or epilepsy. 
c.       A party at the time of the marriage is suffering from venereal disease(s) in a communicable form.
d.     The wife is pregnant for another person other than her husband at the time of marriage. See section 5(1) of the MCA.

4.      JUDICIAL SEPERATION
Judicial separation is also one of the various ways by which a Matrimonial Cause action can be instituted. A decree of judicial separation relieves the petitioner from the obligation of cohabiting with the Respondent whilst the decree subsist. It is akin to dissolution of marriage to the extent that, the grounds as provided under dissolution of marriage are the same grounds for a grant of a petition for judicial separation as per section 39 to 46 of the MCA.           
The difference lies in the consequences of an order for judicial separation, viz:     
a.      It relieves the petitioner of the duty to cohabit and perform conjugal duties with the respondent while the decree lasts.
b.      The parties can sue each other in contract or tort. 
c.       The parties can inherit each other’s property if either of them has died intestate. See section 41 and 42 of the MCA.
d.     A decree of judicial separation shall not prevent either party from bringing a petition for dissolution of marriage. See section 44 of the MCA.
The court will discharge a decree of judicial separation where parties voluntarily resume cohabitation and both consent to the order. See section 45 of the MCA.

5.   RESTITUTION OF CONJUGAL RIGHTS      
With regards to this, parties to the union, whether or not they have at any time cohabited or are not cohabiting and that without just cause or excuse, or the Respondent refuses to cohabit and render conjugal rights to the petitioner, may rely on this relief in a matrimonial causes action. See section 47 of the MCA.
By virtue of Section 49 of the MCA, the Court shall not make a decree of restitution of conjugal rights unless it is satisfied that:
a.      The petitioner sincerely desires conjugal rights to be rendered by the respondent.
b.      The petitioner is willing in turn to render conjugal rights to the respondent. 
c.      The petitioner had made a written request for cohabitation in conciliatory language to the respondent before commencement of the process except there are special circumstances that make it unnecessary to make such a request.
6.   JACTITATION OF MARRIAGE
With respect to Jactitation of marriage, the petition is based on the ground that the Respondent has falsely and persistently boasted that a marriage has existed between the Respondent and Petitioner. It is thus a false assertion by the Respondent of an existent marriage.
A petition can be filed for jactitation of marriage praying the Court to restrain the respondent from asserting such and perpetually keeping quiet.
In concluding therefore, Matrimonial Cause actions may be presented in a variety of ways as the circumstances of the matrimony determine. Nigerian Law on matrimonial causes is very well drafted and encompassing to address all matters arising out of matrimonial disputes.
At Osuya and Osuya Law Firm, we are willing and very well able to provide the best legal advice as well as represent you in relation to any aspect of your matrimonial matter.
BIBLIOGRAPHY
1. Matrimonial Causes Act, 2004.
2. Matrimonial Causes Rules, 2004.
3. ADEGOROYE v. ADEGOROYE (1996) 2 NWLR (Pt.433) 712 CA  
Wilson F. Okoi Esq.


[1] Word Web Dictionary

Thursday, 17 January 2019

AN OVERVIEW OF ALL APPLICABLE TAX INCENTIVES AVAILABLE TO A FOREIGN INVESTOR SEEKING TO INVEST IN NIGERIA



There are several factors a foreign investor should consider before investing in a country, one of such factors is the tax policy of the government of a country the foreign investor desires to invest in. In considering the tax policies of a government, a foreign investor should also consider the presence or absence of tax incentives or benefits.
Tax incentives are measures that provide for more beneficial tax treatment of certain industries or sectors compared to what is granted to the general industry. They are reliefs in form of allowances, exemptions, non-taxable incomes etc. granted to foreign investors in Nigeria.
Tax incentives have been set in place by the Nigerian government to attract investments into certain sectors of the economy or into a geographical area, through the use of industry-oriented incentives.
The tax incentives available in Nigeria based on investment into certain sectors of the economy, geographical areas, or as provided by some of Nigeria's tax laws or treaties are as follows:
1.      PIONEER STATUS: This status under the Industrial Development (Income Tax Relief) Act, 2004, grants tax holiday to a foreign investor for between 3-5 and 7 years who invests in any of the approved pioneer industries. The grant of pioneer status to an investor is aimed at enabling the investor to make a reasonable level of profit within its formative years. The profit made is expected to be ploughed back into the business.
2.      TAX RELIEF UNDER THE COMPANY INCOME TAX ACT (CITA), 2007
              Under the CITA there are several tax incentives available to foreign investors such as:
a.         15% investment tax credit is permitted for a foreign investor who purchases locally manufactured plants, machinery or equipment for use in its business. The tax credit is on such fixed asset bought for use. Also, 25% investment tax credit is allowed on the qualifying capital expenditure for a company engaged wholly in the fabrication of spare parts and equipment for local consumption and export. Section 38 CITA.
b.         Rural investment allowance is granted to a foreign investor/company which incurs capital expenditure on the provision of basic infrastructures/facilities such as electricity, water, tarred road and telephone for the purpose of a trade or business that is located at least 20 kilometers away from such facilities. Section 34 CITA.
c.      20% investment tax credit on qualifying expenditure is available to foreign investors engaged in research and development activities for commercialization. Section 26(3) CITA.
d.      By section 11 (1) of CITA, tax relief/ exemption is granted on foreign loans to a foreign investor carrying on business in Nigeria.

e.      Section 23(1) CITA grants tax exemption on profits to foreign investors involved in charitable or educational activities of a public character, tax exemption on dividend distributed by unit trust, tax exemption on dividend received from small companies in the manufacturing sector in the first five years of operation, tax exemption on dividend received from investments in wholly export-oriented businesses, tax exemption on the profits of a company whose supplies are exclusively inputs to the manufacturing of products for  export etc.
f.       A tax credit of 20% is granted for five years to industries that attain the minimum level of raw materials sourcing and utilization in their respective sectors. The minimum levels are: agro-allied: 70%, engineering: 60%, chemicals: 60%, petrochemicals: 70%.
3.      DOUBLE TAXATION TREATIES: This is in form of bilateral agreements between Nigeria and some countries. It allows for double taxation relief to a foreign investor or a company that has paid taxes in any such country that Nigeria has an agreement with. This means tax payable in Nigeria on the profits of the company being remitted is reduced by the amount of foreign tax paid abroad by the foreign investor. This applies to countries that have a double taxation agreement with Nigeria.

4.      TAX RELIEFS BASED ON INVESTMENT IN CERTAIN SECTORS.
a.      Solid Minerals Sector: Tax incentives such as 3-5year tax holiday, low -income tax of between 20% and 30%, deferred royalty payments depending on the magnitude of the investment and the strategic nature of the project is granted to a foreign investor who invests in the solid minerals sector of the Nigerian economy. Also, a foreign investor who holds a mining lease shall where qualified, be entitled to depreciation or capital allowance of 75% of the certified true capital expenditure incurred in the year of investment and 50% in subsequent years.
b.      Gas Industry: Capital allowance at the rate of 20% per annum in the first four years, 19% in the fifth year and the remaining 1% in the books, investment tax credit at the current rate of 5%, an initial tax free period of three years' renewable for an additional two years, is available to any foreign investor engaged in gas utilization in the gas industry.
c.      Telecommunication: Non-fiscal incentives are provided to private foreign investors who invest in this sector, in addition to a tariff structure that ensures such investors recover their investment over a reasonable period of time bearing in mind the need for differential tariffs between urban and rural areas. A 3-5 years' tax holiday is also granted to investors who engage in the manufacture and installation of telecommunications related equipment, which is considered a pioneer activity.
d.      Energy (Electricity): Tax holiday of 3-5 years is granted to foreign investors that manufacture transformers, meters, control panels, switch gears, cables and other electrical related equipment which are considered pioneer products/industries. Power plants using gas are assessed under the CITA at a reduced rate of 30%.
e.      Transportation: To encourage investment in the transport industry, incentives such as a 3-5 years' tax holiday for the manufacture and maintenance of aircrafts, shipbuilding, repairs and maintenance of vessels, boats, barges, diving and underwater engineering services, has been put in place as a result of such activities being considered pioneer activities.
f.       Tourism: In 1999, the tourism sector was accorded preferred sector status, this qualifies it for incentives which are available to similar sectors of the economy such as tax holidays, longer years of moratorium and import duty exemption on tourism-related equipment. These incentives are granted to foreign investors who invest in the tourism industry in Nigeria.
5.      Tax concession is granted to industries with high labour/capital ratio. Such as industries with plants, equipment, and machinery, which are operated with minimal automation. A tax concession for five years at 15% is granted to a company or foreign investor with 1000 employees.
6.      Duty drawback/ suspension scheme, export processing zone allowance etc. are also tax incentives available to foreign investors in Nigeria. Section 35 CITA.
In conclusion, the above- mentioned tax incentives are available to foreign investors and companies (including Nigerian Companies) who desire to invest in Nigeria. There are several more tax incentives available and we at Osuya & Osuya Law Firm, are ready to provide all the assistance and guidance that will be needed in applying for and obtaining the said incentives.

REFERENCE
1.      The effectiveness of tax incentives in attracting investment: evidence from developing countries, by Stefan Van Parys: https://www.cairn.info/revue-reflets-et-perspectives-de-la-vie-economique-2012-3-page-129.htm#no5

2.      Investment incentives-invest Nigeria: https://www.nipc.gov.ng/investment-incentives/

3.      Ogbuanya, C.S. Nelson, Essentials of Corporate Law Practice in Nigeria (2011) Novena Publishers LTD, PG 204-231

Written by Meekness O. Ikeh (Miss).