Tax administration in Nigeria lacks coherent policy direction and this is capable of undermining the economic growth and efficiency in revenue generation, experts in tax administration have said.
Experts who spoke at a tax seminar titled ‘Taxation in Nigeria – Key Issues and Preview of the Future’, hosted by WTS Adebiyi & Associates said the nation’s tax system must continue to be restructured to meet the expectation of government and the people, through enhanced social welfare for citizens.
Samuel Ogungbesan, acting director of tax policy, Federal Inland Revenue Service, delivering a key note address at the seminar said “there is no doubt that there is shortage of tax policy skills and capabilities in the country which has made tax operation system at both federal and state levels cumbersome”.
Ogungbesan further observed that all these had resulted in weak administrative capacity which were compounded by a culture of poor tax compliance in the country.
Having observed these challenges, there has been a collective effort by the FIRS to ensure modernisation of the Nigerian Tax administration, which became autonomous in April, 2007 while also operating a transparent and efficient tax system that optimises revenue collection and voluntary tax compliance.
Speaking from the legal perspective, Olaleye Adebiyi, partner with WTS Adebiyi and Associates said the nation’s tax system needs to be decentralised.
He said “laws and policies guiding tax payment in Nigeria need to be re
viewed. There are cases where FIRS contradicts the provision of the law and many organisations have taken them to court severally,” he explained.
Mentioning withholding tax law as one of the laws needing review, Adebiyi urged taxpayers to contact his firm at any point they find FIRS contradict the provision of the law.
“Our 23 years experience providing tax and business advisory services on matters relating to tax regulation and compliance enhanced efficiently in manage tax related issues.”
