Nigeria is building single national database for tax purpose

Nigeria is building single national database for tax purpose

Nigeria is building single national database for tax purpose

Nigeria is working on an initiative to bring the data of all corporate organizations and individuals under one platform. The new platform which will harness different databases of various data management agencies will be overseen by the Joint Tax Board (JTB) and the purpose is tax administration.

On Monday, Nigeria’s Vice President, Yemi Osinbajo at an event to flag-off a national unified taxpayers database called New National Taxpayer Identification Number (TIN) Registration System, Osinbajo said President Muhammadu Buhari has directed all government agencies authorized to manage individuals or corporate data to fully cooperate with the JTB and release to the JTB all relevant data as the JTB might need.

Prof. Osinbajo noted that the JTB initiative fully aligns with the Federal Government’s Economic Recovery and Growth Plan (ERGP) to increase national revenue and ease of doing business, hence President Buhari’s directive.

Osinbajo said:  “All the agencies critical towards the success of these initiative: Nigeria Inter-Bank Settlement System (NIBSS), National Identity Management Commission (NIMC), the Central Bank of Nigeria (CBN) all of them have been directed by Mr. President to provide full cooperation with the JTB especially the release relevant data to the JTB. I think that the JTB led by its Chairman, Babatunde Fowler, all the partners and stakeholders who have made this possible deserve our commendation for this giant leap”, he said.

Osinbajo noted that the world is changing and that tax administration must not be left behind:

“The world is constantly changing and along with it, the acceptable ways of doing practically everything. As the international boundaries dissolve under the reality of globalizing world and as financial and economic activities increasingly transcends geographical limitation, tax administration itself must of necessity continually adapt.

“Tax administration is built around data. Without credible and comprehensive data, an efficient tax system is simply impossible. To function optimally, tax systems have to be aware of the importance of data: the number of eligible individuals, the volume of business and economic activities, the designs and strategies, to take advantage of these available data are also crucial. This is where the necessity of a proper identification of eligible taxpayers, whether they be individuals or corporate entities, a tax identification number is simply a vital instrument to be uniquely identified and to bring them into the tax net…

Whichever type of business it is, the tax identification number will life easier The new tax identification system will untilise available data of the variety of authorised identity management agencies and help build a database that is reliable and very viable. At the moment we have data from the Corprate Affairs Commission, the National Identity Management Commission, even from Telecommunications, all of that data is relevant to the tax authority. What this does is that it bring together all that data in one particular system known as tax identification number. Everyone of that data is now coordinated in one system. The ultimate outcome is increased revenue for the government and of course, the ease of doing business.

I am pleased to not that this new initiative aligns fully with the Federal Government’s strategic objectives as contained in our economic recovery and growth plan and all other documents which are meant to improve the economy”, Osinbajo said.

Chairman, JTB and Executive Chairman of the Federal Inland Revenue Service (FIRS) Tunde Fowler noted that new TIN Registration System would help tax authorities to achieve greater goals.

“Tax-revenue administration in the 21st century has evolved into a systematic and deliberate process that is underpinned by the availability of accurate and reliable data. It entails deliberate and strategic planning initiatives, well informed and adequately equipped tax-revenue managers who drive the process both on and off the field.

This new reality drives the desire by the JTB to ensure that the identification of individuals and corporate bodies in Nigeria is achievable. It is not only important that these records are available, it is equally important that the records are credible and reliable and that they are accessible under a secure environment, online real-time”, he said.