Non-Business and Not-For-Profit organizations are registered in Corporate Affairs Commission (CAC) as RELIGIOUS ORGANIZATIONS, SOCIETIES, CLUBS AND NGOs. For now, such organizations don’t pay tax but they are to file and pay annual returns every year to CAC.
To show that such institutions are still in existence among other things, they are expected to file “Annual Returns” every year. Annual return is not tax. Tax goes to Federal, State or Local government Tax Offices while Annual Return goes to Corporate Affairs Commission, only. Annual return must be filed yearly and has nothing to do with profit or loss of an organisation. Whether an institution/organisation make profit or loss, it must file yearly annual returns to CAC.
Annual returns for such organizations must be filed and paid every year between 30 June and 31 December, apart from in the year of registration. Newly registered organizations have waiver from filling and paying annual returns for the year they were registered.
Failure to pay annual return is punishable with a fine of #5.00 for each day. However, in reality, CAC has amended the fines to flat rate of #5,000.00 per annum.
My authorities are sections 607 and 613 of the Companies and Allied Matters Act, 1990.
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