Polaris Bank Explains Implications Of The Finance Act On Banking Services To Customers

By Justina Njoku

Polaris Bank, which was owned by Asset Management Corporation of Nigeria (AMCON) has explained the implication of the new Finance Act 2020 to its teaming customers with a promise to continue to keep then updated on all changes that affect banking services in Nigeria.

According to the explanation, which was made available to its customers via e-mails and other mediums of communication, the bank described the Finance Act 2020, which was recently passed into law by the President Muhammadu Buhari and the legislation as broad, covering many aspects of taxation. The statement further in table format broke down the details when it said, “Below, we have highlighted some key changes made and the effects on banking services rendered to you effective February 01, 2020.”

Your favourite online news platform, www.newsbitsng.com presents you with the table, Polaris Bank shared with their customers as a way of sensitizing them with Nigeria’s financial update.

   S/N Item Old Practice New Provision Effect
1 Value Added Tax (VAT) 5% VAT 7.5% VAT VAT is now to be charged at the rate of 7.5% on eligible transactions
2 Stamp duty Charge Stamp duty of N50 applied on electronic transfers on N1,000 and above Increase in the threshold for Stamp duty from N1,000 to N10,000 Stamp duty will only apply on amounts from N10,000 and above.
This will not apply to transfers to self in the same bank.
3 Tax Identification Number (TIN) TIN is a requirement for the opening of new business accounts TIN will be required for opening and operating of accounts for business purposes Tax Identification Number (TIN) will continue to be a requirement before opening any business accounts.
Existing business account holders will now be required to provide their TIN to continue operating their accounts.

Recall the shortly after AMCON took over the bank in 2019, the Corporation greeted the public with a paid advertisement in some daily newspapers with advertorial that reads: “The Asset Management Corporation of Nigeria (AMCON), the core investor of Polaris Bank Limited hereby demands that all non-performing debtors of Polaris Bank Limited settle their outstanding obligations with the bank. As the new owners of the Bank, AMCON is saddled with the statutory responsibility of recovering all troubled debts of Polaris Bank Limited.

“The Corporation has entered into a new phase in its recovery drive and therefore shall not relent in pursuing vehemently, but within the ambit of the law, the realisation of its recovery mandate against all erring debtors of Polaris Bank Limited. It is therefore in the interest of this class of debtors to urgently take steps at reaching out for an amicable resolution before our next steps that would address the issues and the individuals behind the debts.

“Take Notice therefore that AMCON shall have no option than to first publish specific and detailed list of this category of erring debtors including individuals and institutions that have failed, and or refused to reach settlement resolution of all non-performing loans within 90 days from the date of this publication.”

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