Professional bodies have kicked against the bill for an Act to Amend the Institute of Chartered Accountants of Nigeria (ICAN) Act 1965 for seeking to confer the power of regulating tax practice in the country on the Institute and to define tax practitioners as accountants.
The bodies, including the Chartered Institute of Taxation of Nigeria (CITN), Association of Forensic Accounting Researchers (AFAN) and Association of National Accountants of Nigeria (ANAN) made their positions known at the public hearing on the Bill organised by House of Representatives Committee on Finance on Wednesday.
In his presentation, Chukwuemeka Eze, CITN Legal Adviser, said though they support amendment of ICAN Act, allowing a second body to regulate tax practice in the country would be an aberration.
Eze argued that with section 28 of the proposed law providing that the Council of the Institute shall be made up of 30 Accountants, implied that ICAN will be regulating both accounting and tax practice in the country.
He said CITN has been in court with ICAN over issues of regulations with “the Supreme Court set to deliver judgment on the matter any moment from now”, hence the House should step down consideration of the section 21 and 28 of the proposed law.
In the same vein, AFAN Board of Trustees Chairman, Mohammed Maimuna opined that allowing provisions 21 and 28 of the proposed legislation will be injurious to the profession.
He said: “Since we have bodies pursuing this line of argument, they should be allowed to do that. The two sections should not be considered as they are injurious to the profession. A professional should have freedom to play within his field of expertise.”
Also, Nurudeen Abdullahi, ANAN chief executive officer, said ANAN and ICAN are the two professional accountancy bodies recognized by law, hence the proposed amendment, if passed into law will be inimical, not only to ANAN, but to any other professional body, including future ones that may be statutorily recognised.
He said ANAN opposed the proposed amendment contained in Clause 27 of the Bill, which provides that, “the Principal Act is amended by inserting immediately after the new section 21, a new Section 22 that; This Act supersedes the provisions of any other Act, which purports to diminish, undermine, subjugate or otherwise superintend over the provisions of this Act.”
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While declaring the hearing open, the Speaker of the House, Femi Gbajabiamila said the exercise was an effort to update and improve the statutory foundations of ICAN which is one of the country’s oldest and most important professional institutions.
“Nearly for as long as Nigeria has existed as a sovereign nation, ICAN has existed to professionalise the accounting vocation in Nigeria…These are all valuable contributions, and as such, every effort to strengthen the institution is worthwhile”, said.
In his opening remarks, Deputy Chairman of the Finance Committee, Saidu Abdullahi said amendment of the ICAN Act 1965 is long overdue, hence it will address contemporary economic realities in the country.
“The current amendment proposed by the House of Representatives permeates Sections 1, 2,3,4,6,8,11,12,14,15,16 and 18 of the Principal Act and the insertion of new Clauses 20 and 21 and more interpretation Clauses. The above are to address contemporary economic realities in Nigeria.
“The amendment of the Institute of Chartered Accountants of India in 2012 revolutionized the practice of the profession in India. As lawmakers we are committed to the discharge of this legislative assignment with dexterity, and professional expertise,” the lawmaker said.
