NAN-HE-5
Tax
By Olawunmi Ashafa
Lagos, Dec. 8, 2017 (NAN) An Accountant, Mrs Morenike Babington-Ashaye, has called for more researches that would improve tax administration in Nigeria.
Babington-Ashaye made the call in Lagos on Friday.
The accountant decried a system where government would ask people to declare their incomes but would not ask them to declare their expenditures.
According to her, this situation encourages tax evasion.
She said that the Constitution Round Table and Launch of the International Centre for Tax Research and Development (ICTRD) brought together professionals genuinely interested in the development of Nigeria’s tax system to chart the way forward.
She told NAN that the professionals included lawyers, accountants and economists.
“Today, we are moving toward a clean environment in political, economic and social setup.
“We pay taxes as citizens for government to provide a healthy environment on all fronts.
“ We allow government to harness our natural resources with the hope of using it to build a strong society,’’ Babington-Ashaye said.
“We must ensure that our representatives in the National Assembly consult us as citizens on any national issue before taking decisions on our behalf,’’ she said.
According to her, it is important to determine whether the Education Tax being paid by companies should be used as a primary source of funding education or an intervention as obtains at present.
“We will take the outcome of this roundtable to the National Assembly and all the state Houses of Assembly, the Judicial Commission and the Chief Justice of Nigeria, all governors and chairmen of local governments.
“The outcome of the Round Table will be interpreted in the three main languages and will be available to all Nigerians,’’ Babington-Ashaye said.
A politician, Mr Ayo Opadokun, said that less than seven per cent of Nigeria’s wealthiest group paid tax.
“When people pay tax genuinely, they have a right to ask questions.
“There is low level of tax payment in Nigeria; most Nigerians show lukewarm attitude to what those in government do because most Nigerians do not pay tax.
“They do not engage in asking government on how taxes are utilised,’’ the politician said.
Mr Herbert Agbebiyi, a former President of the Institute of Chartered Accountants Nigeria (ICAN), said that good taxation system should meet certain fundamentals such as equity and fairness, compliance test adequacy, sustainability and administrative ease.
Agbebiyi said that there had been researches carried out in the country on tax administration.
“Some universities used taxation topic as research programmes for undergraduates.’’
He listed such topics to include taxation as tools for economic development; taxation as a major source of government funding, and the impact of taxation on government capital expenditure and economic growth.
Others, he said included the impact of taxation on revenue generation and effects of e-direct taxation on consumption in the country.
Agbebiyi hailed the nation’s tax policy approved in February 2017 though yet to be implemented.
He said that the policy should serve as a reference point and be a guide for all stakeholders.
The former ICAN boss said that the ICTRD, the first of its kind, would provide the opportunity for cross-border interaction among tax practitioners.
He lauded the objectives of the centre and said that its contributions would be of immense benefits to nation- building.
The former ICAN chief said that the centre would be for research on taxation matters.
A chartered accountant, Mr Okeowo Oderinde, said that Nigerians needed more enlightenment on tax system for more compliance.
Oderinde, a former Chairman, ICAN Ikeja District, advised Nigerians to take voluntarily comply with tax policies than waiting to be sanctioned before compliance.’’
The Erelu of Lagos, Abiola Dosunmu, said there was need for tax experts to continue to deliberate on best ways of making Nigerians understand the benefits of taxation.
Dosunmu said that Nigerians should also be encouraged to always be involved in taxation processes.
She noted that the ICTRD would help in nation-building and promote transparency and accountability in governance. (NAN)
AWA/AJA/IGO
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Edited by Adeleye Ajayi/Ijeoma Popoola