Tax Optimization¶
Last reviewed: 2026-03-31 · Nnamdi
Status: Complete
Route: /tax/optimization
1. What is it?¶
Tax Optimization is an AI-generated recommendations engine that analyses a business's financial data and surfaces actionable suggestions to legally minimise its tax liability. Each recommendation has a priority level (High / Medium / Low), a category, a title, a description, and a Potential Savings estimate. Recommendations can be marked as done (when acted upon) or dismissed (if not applicable). The page covers the current and prior fiscal years.
2. How does it work in Finora?¶
2.1 The Tax Optimization page (/tax/optimization)¶
Header: - Heading: "Tax Optimization" - Subtitle: "Actionable suggestions to minimize your tax liability" - Year selector — 2026 / 2025 / 2024 - Export Report button
KPI summary strip:
| Metric | Value (test business, 2026) |
|---|---|
| Total Potential Savings | ₦0.00 |
| High Priority | 0 |
| Medium Priority | 0 |
| Low Priority | 1 |
For the test business, the sole recommendation is Low priority (the business already qualifies for small company exemptions). Active businesses with more complex tax positions will see more recommendations.
Priority filter tabs: All / High / Medium / Low
2.2 Recommendation cards¶
Each recommendation shows:
| Field | Description |
|---|---|
| Priority badge | HIGH / MEDIUM / LOW |
| Category | e.g., "Revenue Threshold", "Expense Deductions", "Capital Allowances" |
| Title | Recommendation heading |
| Description | Explanation of the opportunity and suggested action |
| Potential Savings | Estimated naira amount that could be saved if acted upon |
| Mark as Done | Marks the recommendation as actioned — removes from active list |
| Dismiss | Hides the recommendation permanently |
Sample recommendation (test business, 2026): - Priority: LOW - Category: Revenue Threshold - Title: "Small Company Tax Benefits Available" - Description: "Your revenue (₦436,250) qualifies you as a small company. Ensure you're claiming all available preferential treatments." - Potential Savings: ₦0.00
This recommendation has ₦0.00 potential savings because the business already has all small company exemptions applied — no additional action produces incremental savings. It serves as a reminder to maintain the qualifying status.
3. Business rules & constraints¶
| Rule | Detail |
|---|---|
| Recommendations are AI-generated | Finora analyses the business's revenue, expenses, assets, and tax position to produce recommendations |
| Year-specific | Recommendations apply to the selected fiscal year |
| Dismiss is permanent (per session) | Dismissed recommendations are hidden — they may reappear if the underlying data changes in a future period |
| Mark as Done tracks completion | Actioned recommendations are moved to a "done" state for record-keeping |
| Potential Savings is an estimate | The savings figure is based on the business's current data; actual savings depend on correct implementation |
| Export Report | Downloads the full optimization report for the selected year |
4. Nigerian regulatory context¶
Legal tax minimisation vs evasion All recommendations in Tax Optimization are based on legal exemptions, deductions, and allowances under Nigerian tax law (NTA 2025 / NTAA 2025). This is tax planning — distinct from tax evasion (which is illegal).
Common optimization opportunities for Nigerian SMEs: - Small company status: Ensuring businesses under ₦50M turnover claim 0% CIT, 0% CGT, and 0% Development Levy - Capital allowances: Claiming Initial Allowance and Annual Allowance on fixed assets instead of accounting depreciation (which is not deductible for CIT) - WHT credit utilisation: Applying accumulated WHT credits against future WHT obligations rather than letting credits go unclaimed - Pension deductions: Employee and employer pension contributions are deductible for PAYE and CIT purposes - VAT input credit recovery: Ensuring all eligible input VAT on business expenses is claimed against output VAT
5. Common customer questions¶
Q: "I have no recommendations showing. Is that normal?"
If you have no pending recommendations, it means either: (a) your business is already fully compliant and optimised, (b) there is no financial data in the system yet, or (c) recommendations have all been dismissed. Check the year selector — recommendations may exist for prior years.
Q: "What does 'Potential Savings: ₦0.00' mean on the small company recommendation?"
It means the opportunity has already been applied — your business already qualifies and benefits from the small company exemption. The recommendation is a reminder to maintain your qualifying status as your revenue grows toward the ₦50M threshold.
Q: "Can I un-dismiss a recommendation?"
Dismissed recommendations cannot be restored from the UI. If a customer dismissed something they now need, escalate to Tier 2.
Q: "The recommendations say to claim capital allowances. How do I do that?"
Capital allowances are calculated in the CIT Computation module (
/tax/cit-computations). Initial Allowance and Annual Allowance rates depend on the asset category. Escalate to Tier 2 for guidance on how to input capital allowance data into Finora's CIT Computation.
6. Known edge cases¶
Test business shows ₦0.00 potential savings¶
The COA Test School Academy has no actionable savings because it is already a small company with all exemptions applied. Real businesses with payroll, assets, and active income will see more substantive recommendations with meaningful savings estimates.
Dismissed recommendations do not return¶
If a recommendation is dismissed in error, it will not reappear unless the underlying financial data changes sufficiently to trigger a new version of the same recommendation. Treat Dismiss as permanent from a support standpoint.
7. Escalation trigger¶
Escalate to Tier 3 (Founder) if: - Recommendations are clearly incorrect (e.g., suggesting a small company file VAT when it is exempt) - Export Report fails to generate
Escalate to Tier 2 (Support Lead) if: - Customer needs help implementing a recommendation (e.g., how to claim capital allowances in the system) - Customer dismissed a recommendation in error and wants to restore it - Customer wants a detailed explanation of a High-priority recommendation and its legal basis
8. Last reviewed¶
2026-03-31 — Nnamdi. Verified against production. Tax Optimization for COA Test School Academy, 2026: Total Potential Savings ₦0.00 / High 0 / Medium 0 / Low 1. One recommendation: LOW priority / Revenue Threshold / "Small Company Tax Benefits Available" / "Your revenue (₦436,250) qualifies you as a small company. Ensure you're claiming all available preferential treatments." / Potential Savings ₦0.00. Mark as Done and Dismiss buttons confirmed. Year selector 2024/2025/2026. Export Report confirmed. Priority filter tabs All/High/Medium/Low confirmed.