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Friday, September 8, 2017

Is Union Bank Really Paying 4.2 As Interest Rate?

To me, I will say no. Why? The reason is because of the tax policy they just started.

Last month, August 2017, Union Bank PLC started a policy of deducting 10% off the interest they are giving their Savings Account users. They call this 10% deduction Withholding Tax.

Thus to me, the actual interest rate of Union Bank of Nigeria is 4.2% of your annual balance less 10% of the interest paid.

But on the other hand, someone might say, aren't you expected to pay tax before?
To me, Yes. Infact, I consider it as a sin and crime if you intentionally evade paying tax.

My reasoning is this, are we to pay tax for money that was tipped to us as incentive for using their services?

To me, it does not make sense. What about you?

Team +Pinfoltd 



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