CITN charges tax professionals on govt policies, devt’s

The President and Chairman of Council, Chartered Institute of Taxation of Nigeria, (CITN) Dame Gladys Simplice has called on tax professionals in the country, who incidentally are members of the Institute to raise their professional bars in tax related matters as a result of the unprecedented disruptions and challenges the “new normal” – the Covid-19 – has suddenly brought to bear.

She stated this in an opening remark she made at the 42nd induction ceremony of the Institute, which is also the first ever virtual induction in the history of the Institute. A total number of 582 inductees, comprising of males and females, were inducted.

The CITN president affirmed that induction ceremony is in fulfilment of one of the core objectives of the Institute, which is to admit qualified persons as tax professionals in compliance with the provisions of the CITN Act.

While congratulating the inductees, Simplice reminded them that they “are joining the taxation profession at a challenging time for all nations of the world,” occasioned by the novel coronavirus pandemic.

The CITN president said, “The outbreak of Coronavirus has severely affected the world economy to the extent that the United Nations Development Programme (UNDP) has warned that “the Pandemic is far more than a health crisis: it is affecting societies and economies at their core.

“As professionals, we must be on top of current policies and developments in the profession to be able to enlighten our clients on reliefs available to them. This would assist them in reducing their exposures and going concern while also ensuring that they are able to fulfil their taxes obligations as and when due.

“In the same vein, we expect that the tax authorities will continue to engage more with taxpayers towards addressing the challenges that they face in these uncertain and challenging times.

The keynote speaker, the Director General, Nigeria Employer s ‘ Consultative Association (NECA), Dr. Timothy Olawale, disagreed with the Federal Government resorting to borrowing spree rather than widening the tax net and ensuring adequate collections.

Olawale, said the country should not have been indebted to such huge amount due to borrowing from local and foreign sources if tax potential of the country was effectively tapped.

He lamented the state of the economy, condemned the unwholesome practice of tax avoidance and tax evasion, reminding the government that “taxation is an important strategy by the government in promoting economic growth and development of a nation.

He said, “We submit that taxation is a significant determinant of economic growth in Nigeria. We, therefore, recommend that government should enact policies so as to ensure adequate collections of taxation, after widening the tax-net. It is important for government to embark on massive awareness and sensitization on the importance of taxation to the populace – this could be done through recognised Bodies like NECA, CITN,

“Government should examine the effect of taxation on economic growth in Nigeria. We call on the Institute and its members to continuously guide taxpayers, tax authorities and government on the appropriate steps that should be taken as a nation. We, however, urge that taxes should be on “what is owed” or due and not for the tax authorities to collect more than is legal. The responsibility to determine taxes due lies with tax practitioners and it is a function of knowledge; hence your training in the Institute. This also places a responsibility on the Institute on continuous training as new taxes emerge or are replaced by Government e.g. the Finance Act 2020 etc.

“It is true that taxation is an important strategy by the government in promoting economic growth and development of a nation. However, the economy of Nigeria has continued to lose huge amount of revenue through the unwholesome practice of tax avoidance and tax evasion. It is on these backdrops that government should examine the effect of taxation on economic growth in Nigeria. Specifically, the impact of Value Added Tax on economic growth in Nigeria as well as examine the effect of Petroleum Profit Tax on economic growth in Nigeria. It is not just in the collection of taxes but it’s utilisation to the benefit of the citizens and the nation at large. It is my considered opinion that the country should not be indebted to such huge amount of money due to borrowing from local and foreign sources. We submit that taxation is a significant determinant of economic growth in Nigeria. We, therefore, recommend that government should enact policies so as to ensure adequate collections of taxation, after widening the tax-net. It is important for government to embark on massive awareness and sensitization on the importance of taxation to the populace – this could be done through recognised bodies like NECA, CITN etc.