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Nigeria gets 2nd term to head African Tax Forum

Tunde Fowler, has been re-elected as the Council Chairman of the African Tax Administration Forum
Tunde Fowler, has been re-elected as the Council Chairman of the African Tax Administration Forum

 

Nigeria gets 2nd term to head African Tax Forum

After his first term from 2016 to 2018, a Nigerian and Executive Chairman, Federal Inland Revenue Service (FIRS), Tunde Fowler, has been re-elected to head the Council of the African Tax Administration Forum (ATAF) for a fresh two-year term.

A statement by FIRS Communications Head, Wahab Gbadamosi said Fowler was returned unopposed by all ATAF Council members at the Forum’s 5th General Assembly meeting, Wednesday in Gaborone, Botswana.

“He led the organisation in the last two years, with commendable applause from members of the organisation. His candidature was not opposed by any of the 26 countries that participated in the election.

Burundi, Burkina Faso and Mauritius slotted it out in for the Vice-Chairman’s position. Mauritius won”, the statement added.

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Established in 2009.ATAF, the continental association of tax authorities has 38 members.

Two years ago, in Johannesburg, the FIRS Chief Executive took over from the Commissioner General of Zimbabwe Revenue Authority, Mr. Gershem T. Pasi. Fowler will preside over the affairs of the Forum from 2018 till 2020.

Fowler is an inspiration to ATAF. Two years ago, he delivered a seminar at the African Tax Administration Forum-International Monetary Fund (ATAF-IMF) organised brain-storming session where isolated how to make taxation work for Africa

Tunde Fowler was born to the family of Professor (Dr) and (Chief) Mrs. W.V. Fowler both of Lagos State, Nigeria. He studied in the United States of America at the University of Wisconsin, Whitewater, where he obtained his first bachelor’s degree with a Bachelor of Science in Economics and a minor in Political Science in 1978. He completed a second bachelor’s degree program at California State University, Los Angeles and also a Master of Business Administration degree program at California State University, Dominguez Hills in 1981. 

Before he was appointed the Executive Chairman, FIRS and Chairman Joint Tax Board (JTB) on 18th August, 2015 by His Excellency, President Muhammadu Buhari, GCFR, to oversee activities at the FIRS and drive the change agenda of the administration in the tax sector, Fowler had made a bold imprint on the Lagos State Internal Revenue Service (LIRS) as its Chief Executive Officer and Executive Chairman of the Lagos State Board of Internal Revenue between 2006 and 2015.

Some of his achievements in Lagos include:

  • A sharp increase in Internally Generated Revenue (IGR) from an average of N3.6 Billion monthly as at January, 2006 to an average of over N23 Billion monthly as at June, 2015;
  • Improved quality of service delivery to taxpayers;
  • Improvement in the use of IT and other modern methods of tax administration;
  • An unprecedented enlightenment campaign on tax administration and education in Africa.

These reforms made Lagos State the only state in the Federal Republic of Nigeria that is financially independent of the monthly financial allocation of revenue from the Federation Account and also the only State that generates internally, more revenue than the monthly allocation from the Federation Account. The state is presently able to meet to a considerable degree, the enormous demands for infrastructure and services from the exploding population presently put at over 21 million.

Fowler has been honoured as a fellow of the Chartered Institute of Taxation, Ghana and is a fellow of the Institute of Chartered Accountants, ICAN in Nigeria.

In the last two years, Fowler has collected a total of N7 trillion in taxes as Chairman of the Federal Inland Revenue Service, (FIRS) and introduced 6- e-Solutions to ensure that taxpayers can file and pay their taxes 24/7, anywhere, anytime.

Fowler ran a tax amnesty programme and the Voluntary Assets Income Declaration Scheme, VAIDS, which fetched the nation almost N100 billion in tax receipts. He has began closing in on defaulting billionaire taxpayers with the bank account substitution scheme; jerked up national tax roll in conjunction with States Internal Revenue Authorities (SIRS)- to about 19 million and is ramping up other defaulters with national tax audit programme and enforcement schemes.                                           

In recognition of the above, Mr. William Babatunde Fowler was awarded Honorary Senior Member of the Chartered Institute of Bankers of Nigeria in 2004, conferred with fellowship ‘Honoris Causa’ by Certified Board of Administrators of Nigeria in May 2007 and Professional Honorary Doctorate Degree in June 2007 by the Irish International University. He is also a Fellow of both the Chartered Institute of Taxation of Nigeria and Business Management Association (UK).

He started out as a Marketing Intern with Avon Products Inc. New York working under the Vice President in charge of Africa. Having completed his formal education, he was employed by Johnson and Johnson in New Jersey USA, thereafter he was transferred to join Johnson and Johnson, Nigeria between September 1982 and September 1983.

He made a career change from International Finance and Marketing to Banking in January 1984. In the banking industry, he had the opportunity to work and also head broad and varied areas of banking operations and business development in two major commercial banks over the next 20 years.

 

Executive Chairman, FIRS, Tunde Fowler (Middle), Botswana Finance and Economic Development Minister, Kenneth Mantambo (Left) and the Secretary General of ATAF, Logan Worth, at the opening of ATAF conference in Botswana
Executive Chairman, FIRS, Tunde Fowler (Middle), Botswana Finance and Economic Development Minister, Kenneth Mantambo (Left) and the Secretary General of ATAF, Logan Worth, at the opening of ATAF conference in Botswana

He joined Commercial Bank (Credit Lyonnais Nigeria Limited) in January 1984, where he was exposed to all aspects of International Banking, Risk Management, and Clearing Operations. He introduced positive reforms as the Treasurer of the bank. He was a foundation member and trustee of the now Money Market Association of Nigeria. His banking experience at Commercial Bank (Credit Lyonnais Nigeria Limited) came to conclusion with his last appointment as the Apapa Branch Manager, the first branch of the bank outside the head office.

He left Commercial Bank (Credit Lyonnais Nigeria Limited) in March 1990 to join Chartered Bank in April 1990 as a Senior Manager where he spent the next 14 years. His initial posting was as Head of Branch Network during which he successfully grew the bank’s branches from two to 11 branches, spread over the country within the first five years. He was also in charge of revenue collections for both State and Federal agencies, which he grew, placing the bank amongst the top three banks in all collections. He demonstrated excellence as a seasoned banker and administrator until he left the organization as a General Manager in March 2004.

Upon leaving the banking industry in 2004, Mr. Fowler joined the Lagos State Government and was appointed the pioneer Permanent Secretary/Executive Chairman of the Lagos State Board of Internal Revenue on the 24th of November 2005, thereby upgrading the office of the Executive Chairman to the highest level in the Civil Service.

Under Fowler, ATAF has recorded tremendous strides in the last two and half years. In Abuja last year ATAF launched a landmark ATAF Transfer Pricing Toolkit, which has and is assisting African countries in preventing huge financial loses through new Transfer Pricing Rules. Many African Tax Authorities are leveraging on the toolkit to contain financial leakages from their economy. 

Also, ATAF under Fowler has given the African continent a global voice in global Tax Matters. For instance, ATAF is leading the world in African position on Tax Affairs, with its representation on High Level Talks on stemming Illicit Financial Flows, IFF. ATAF, under Fowler has also launched the African Tax Outlook, through which African Tax administrations are sharing data.

The organisation has also strengthened the capacities of African Tax Administration Authorities, with its organisation of quality technical training on the continent

When he declared the conference open on Monday, Fowler noted that attendance of 35 countries at the event – (of 38 members) — reflect the value and appreciation attached to the role ATAF continues to play in leading and shaping tax matters on the African Continent. He noted too that the attendance reinforces members support for and participation in the ATAF agenda.

The ATAF Chairman noted that the ATAF Council considers this General Assembly, as pivotal in ATAF’s journey. Said Fowler: “We take cognisance of the fact that this is the tenth year of its operations and as such, we are delighted that for the last two years, as the Council, we have been deeply engaged in providing the organisation with the direction required to meet its mandate to support the forging of effective and efficient tax systems in Africa.

“This is a time for reflection and a time for renewal.  We have no doubt, that the foundation and current health of the organisation is robust, and ready to propel the work of ATAF into the next 10 years that can only be productive, focussed and support Africa as articulated in its Agenda 2063.

“ The sitting Council of ATAF which I have been privileged to Chair for the last two years, held its last meeting ahead of tomorrow’s (today 24th October 2018) election of a new Council. It is with a sense of pride and great achievement that we have been able to serve the ATAF membership. The work of the organisation is at the peak of its visibility both at the continental level, and globally. The recent recognition of ATAF’s work by the African Union during the July Assembly of its Heads of State and Government in Mauritania, as well as the most recent acceptance of ATAF as a member to two sub committees, of the UN Experts on Mutual Tax Matters (ODA and Tax Treaties) that took place last week in Geneva-Switzerland, is a clear manifestation of the global and continental recognition and endorsement of ATAF as the lead voice on African taxation. This is a vision that we as Council, have steadily promoted, in our tenure, and that we have no doubt the new Council will strengthen and advance this vision.

“The ATAF 5th General Assembly is taking place at a time of increased globalisation and at the time when many countries on the continent are realising and appreciating the benefits of free movement of goods, labour and capital.  We are witnessing an increasingly interconnected Africa in an interconnected world.  These developments provide both opportunities and challenges when it comes to tax administration. The growing sophistication in tax evasion and avoidance is a major threat that no single country can successfully tackle “individually.   But it can be fought collectively and that is why ATAF Committees including those meeting here this week are sharing experience, developing common solutions and a voice for Africa in this area.

“To assist our membership directly in creating strong tax systems, ATAF is increasing its support to revenue administrations through technical assistance programmes covering both international and domestic taxes focused on the specific needs of members. As Heads of administrations, it is crucial that we take advantage of the technical support that ATAF offers through both its country programmes and applied research and capacity building programmes.  We anticipate that over the next few days this General Assembly will have an opportunity to consider in detail some of the new initiatives that ATAF has in these areas.

“One proposal which I find exciting is the implementation of what we refer to as a Commissioner’s- General Master Dialogue, where Heads of tax administrations would be invited to share their experience, develop solutions, input directly into the ATAF agenda and guide the secretariat in the development of relevant programs tailored to Africa’s needs. It would be useful to get views on this. This couldn’t come at a better time, given that this Council recently approved the ATAF Policy Framework for Technical Assistance and “Digitisation is a challenge which could also turn into an opportunity if African tax administrations rise to the task.  We need to recognise the pace of this process but also seize our opportunity as Africans to develop uniquely African approaches using technology in new and imaginative ways. This General Assembly is an opportunity to discuss such globally topical challenges and encourage you all to seize it. In all our discussions, we must be guided by the spirit of pro-activeness. The African voice must continue to be heard and listened to on tax issues. We can only avoid the “catch up Syndrome” by investing in new research, new innovations and modern tax practices and collectively develop innovative solutions that grow out of the realities of our economies”.

The ATAF Chairman, who is also the first Vice Chairman of the United Nations International Experts on Tax Matters, noted that the theme of the 5th General Assembly is “Moving Africa Beyond Aid through Tax Revenue mobilisation” is key to sustainable developments in Africa. “While aid is important to usher us to self-sustainability and leads to development when well utilised, it is crucial for African countries to look inward, modernise their tax systems and generate revenue through increased effectiveness in tax mobilisation. This is indeed more sustainable and reliable for development and since it happened elsewhere, there is no reason why it cannot happen in Africa.  It is critical that we deepen our engagement with development partners to ensure that their promised support is efficiently delivered and effectively used and that we tap into their experience as we shape the tax agenda for our continent.    

He encouraged ATAF, as the leading body on the African continent in tax matters, to continue to promote efficiency and effectiveness of the tax administrations through its mandate and subsequent programmes.

 “Let me take this opportunity to thank my colleagues on Council for the stellar work done in the last two years. It has been a great pleasure for me to lead you and I would like to thank the Secretariat for their tenacity in delivering ATAF’s mandate to support effective revenue mobilisation on the continent. We leave a solid organisational structure, clear policies and strong relationships with development partners in place. This is a platform for an organisation on the move, and with your ever-strengthening commitment to our common objective we anticipate the future decade for ATAF to be both productive and exciting”, he said.

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Business

Nigeria: New tax regime eyes freezing defaulters’ bank accounts

Head of apex tax authority in Nigeria, Tunde Fowler (Middle) in a stakeholders meeting recently
Head of apex tax authority in Nigeria, Tunde Fowler (first-row, frist from Left) in a stakeholders meeting recently

 

Nigeria: New tax regime eyes freezing defaulters’ bank accounts

If the ongoing parley between the Federal Inland Revenue Service (FIRS) and stakeholders like collecting banks (banks accredited to collect taxes on behalf of the Federal Government) ends smoothly, Nigerian revenue authority will be freezing bank accounts of tax defaulters.

Over 6, 772 defaulting taxpayers, mostly billionaires, according to banks’ data, will be affected by this exercise.

Although the power to work with institutions like banks to track and punish tax offenders is enshrined in the FIRS Act of 2007, the tax institution is just beginning to explore such powers.  

FIRS said it has come to its notice that taxpayers who are raking in billions in Nigeria are not paying taxes, its Executive Chairman, Tunde Fowler, has said.

The tax authority also said it would, through all banks in the country, do substitution on accounts for such identified taxpayers.

Fowler, who disclosed this at a stakeholders’ meeting Thursday in Lagos, noted that most of such taxpayers who have between N1 billion and N5 billion in their accounts have no Taxpayer Identification Number (TIN) and have not filed any tax returns as taxpayers.

His words: “What we have done is what we call substitution, which also is in our laws, which empowers us to appoint the banks as collection agents for tax. So, all these ones of TIN and no pay and no TIN and no pay, totaling 6,772, will have their accounts frozen or put under substitution pending when they come forward. First, they equally declined to come forward in 2016, they refused to come forward under VAT and are still operating here. So, we are putting them under notice that it is their civic responsibility to pay tax and to file returns on these accounts.”

Fowler explained further: “We looked at all businesses, partnerships, corporate accounts that have a minimum turnover of N1 billion per annum for the past three years. First of all, the law states clearly that before you open a corporate account, part of the opening documentation is the tax ID. From the 23 banks that we have analysed so far, we have 31,395 records. Out of which, effectively minus duplications, we had 18,602.

“We broke those into three categories: Those that have TIN tax ID, those that don’t have no TIN and, of course, no TIN no pay and those that have TIN and have not even paid anything.

“So, on a minimum, every company or business included here over the last three years has had a banking turnover of N3 billion and above. Some of them have had banking turnover of over N5 billion and have not paid one kobo in taxes. Now, the total number of TIN and no pay is 6,772.

“So, if someone is good in mathematics, you take the minimum level of N3 billion multiplied by 409; and they are operating within our society and economy and do not remit or make any tax payment.”

Paraphrasing the Nobel Laureate, Prof. Wole Soyinka’s famous quotation of wasted generation, Fowler said this generation should not repeat Soyinka’s description by their conduct. “I plead with the banks to support us. In supporting us, you are supporting Nigeria. In supporting Nigeria, you are supporting all Nigerians and those who have chosen Nigeria as home. And most of all, you are supporting a future that we can leave behind for the upcoming youths of Nigeria.”

 

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Latest News Law

Nigeria’s Presidency, NASS, EFCC not tax compliant—Report

Aso Rock, Nigeria’s seat of executive power, failed to remit taxes, such as pay as you earn (PAYE), value added tax (VAT) and withholding tax (WHT), to the Federal Inland Revenue Service (FIRS) in 2016
Aso Rock, Nigeria’s seat of executive power, failed to remit taxes, such as pay as you earn (PAYE), value added tax (VAT) and withholding tax (WHT), to the Federal Inland Revenue Service (FIRS) in 2016

 

Nigeria’s Presidency, NASS, EFCC not tax compliant—Report

Report has emerged that Nigeria’s Presidency, the same quarters where orders for tax payment come from does not comply with the Nigerian tax laws.

The report which was published on Wednesday by The Cable, an online platform, also said the National Assembly and some federal agencies such as the Economic and Financial Crimes Commission (EFCC) default in taxes.

“Aso Rock, Nigeria’s seat of executive power, failed to remit taxes, such as pay as you earn (PAYE), value added tax (VAT) and withholding tax (WHT), to the Federal Inland Revenue Service (FIRS) in 2016 — despite deducting at source. The two chambers of the national assembly also failed to remit these taxes same year. These revelations are contained in the just-released 2016 annual report of the auditor-general of the federation obtained by TheCable”.

The platform added that the auditor-general said State House headquarters did not remit N253,194,782.74 in taxes, while State House operations (president) withheld N10,500,471.26 and State House operations (vice president) N7,497,570.93.

A total of 109 ministries, departments and agencies (MDAs) — including the Economic and Financial Crimes Commission (EFCC) — failed to remit taxes to the appropriate agencies during the audited period, according to the report signed by AM Ayine, the auditor-general of the federation.

Also named as defaulters are teaching hospitals, national parks, federal government colleges, polytechnics, universities, federal ministry of justice, office of the head of civil service of the federation, Nigerian Prison Service, Nigerian Television Authority and National Emergency Management Agency.

NATIONAL ASSEMBLY TOO

On the house of representatives, the auditor-general wrote: “Pay As You Earn (PAYE) deductions from staff salaries totalling N821,564,296.48 (Eight hundred and twenty-one million, five hundred and sixty-four thousand, two hundred and ninety-six naira, forty-eight kobo), were claimed to have been remitted to the tax authorities, but receipts for the remittances were not produced for audit verification in contravention of Financial Regulation 235 which states that “Deductions for WHT, VAT and PAYE shall be remitted to the Federal Inland Revenue Service at the same time the payee who is the subject of the deduction is paid.

“The Clerk to the National Assembly should produce the receipts confirming the remittance of the sum of N821,564,296.48 to the Federal Inland Revenue Service for verification. (b) Contrary to the provisions of Financial Regulations 1404(i) and 1405 which require Accounting Officers to provide adequate Advances records and to ensure that officers granted advances retire them promptly, advances granted to officers of the House of Representatives totalling N254,059,513.70 (Two hundred and fifty-four million, fifty-nine thousand, five hundred and thirteen naira, seventy kobo) for procurement of goods and services between January and December, 2016 remained unretired as at the time of examination in June 2017.

“The Clerk to the National Assembly should recover the whole sum of N254,059,513.70 from the defaulting officers and forward recovery particulars for Verification.”

On the senate, he wrote: “Withholding and Value Added Taxes totalling N118,625,057.48 (One hundred and eighteen million, six hundred and twenty-five thousand, fifty-seven naira, forty-eight kobo), which were purportedly remitted to the Federal Inland Revenue Service, were not acknowledged with revenue receipts.

“The Clerk to the National Assembly was requested to recover the whole sum from the defaulting officers and furnish recovery particulars for verification. (b) Withholding and Value Added Taxes totalling N118,625,057.48 (One hundred and eighteen million, six hundred and twenty-five thousand, fifty-seven naira, forty-eight kobo), which were purportedly remitted to the Federal Inland Revenue Service, were not acknowledged with revenue receipts. The Clerk to the National Assembly should produce the receipts from the Tax Authorities for verification.”

The federal government has been cracking down on tax defaulters recently 2015 but recently declared limited amnesty through VAIDS.

The auditor-general is required by Section 85 (5) of the constitution to submit the report on the audit of the accountant-general’s financial statements to the national assembly within 90 days of receipt of the statements from the accountant-general.

In the executive summary, Ayine wrote: “The Financial Statements of the Federal Government for the year ended 31st December, 2016 were first submitted to me by the Accountant-General of the Federation on 30th June, 2017. Following my preliminary observations, the Statements were significantly amended and resubmitted on 29th September,  2017.  Further  amendments to the Financial Statements led to another re-submission on 29th December, 2017 and 16th January, 2018 before the final version was eventually submitted on 20th March, 2018,” he said. Read original report.

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Latest News Law

See List: Nigeria Reconstitutes Tax Appeal Tribunals

Minister of Finance, Mrs. Kemi Adeosun
Minister of Finance, Mrs. Kemi Adeosun

See List: Nigeria Reconstitutes Tax Appeal Tribunals

Nigeria’s Government has reconstituted its Tax Appeal Tribunals (TAT) in the eight zones where TAT sits: Six geopolitical zones of Nigeria as well as Lagos and Federal Capital Territory (FCT).

TAT is a parastatal under the Federal Ministry of Finance charged with the responsibility of adjudicating over tax issues between Nigeria’s apex tax authority, the Federal Inland Revenue Service (FIRS) and the taxpayers in accordance with the Establishment Act of the FIRS, N0: 13 of 2007.

Minister of Finance, Mrs. Kemi Adeosun, who announced the reconstitution on Thursday in Abuja

A statement by the Minister’s Media Adviser, Mr Oluyinka Akintunde, quoted her as saying that “the reconstitution of the Tax Appeal Tribunals is an essential part of building tax payers trust and confidence in the fairness of the system.”

According to the Minister, “the Federal Ministry of Finance has undertaken a rigorous process to select competent persons on the basis of merit who will be expected to discharge their duties professionally.”

She added that the Ministry sought nominations from a number of professional bodies and stakeholders, including the Institute of Chartered Accountants of Nigeria (ICAN), Association of National Accountants of Nigeria (ANAN), Chartered Institute of Taxation of Nigeria (CITN), Nigeria Bar Association (NBA) and the Nigerian Association of Chambers of Commerce & Industry, Mines and Agriculture (NACCIMA).

The Tax Appeal Commissioners, according to Mrs Adeosun, are expected to hold office for a term of three (3) years from the date of appointment.

Each Tribunal is made up of a Chairman and four Commissioners knowledgeable in the laws, regulations, norms and practices of taxation in Nigeria, management and trade.

* Members of ABUJA TAX APPEAL TRIBUNAL are : Iriogbe Ayo Alice, (Chairman); Prof. Ishola Rufus Akintoye, Ajayi Julius Bamidele, Dr. Almustapha Aliyu, Nasiru Kuliya.

 *LAGOS TAX APPEAL TRIBUNAL:

Lassise-Phillips Olanrewaju Moshood (Chairman),  Dike Mark Anthony Chidolue, Sanusi Maijamaa Ajiya, Mrs Titilola Akibayo, Rasaq Adekunle Quadri.

 *NORTH-EAST ZONE TAX APPEAL TRIBUNAL – SITTING IN BAUCHI, BAUCHI STATE: Bagoni Alhaji Bukar(Chairman), Barr. Bashir Maidugu, Adamu Ismaila, Tijanayi Musa Isa, Mrs. Nafisa Shehu Awak.

*NORTH WEST ZONE TAX APPEAL TRIBUNAL – SITTING IN KADUNA, KADUNA STATE:  Umar Mohammed Adamu (Chairman), Isa Kabir Dandago, Bayero A.S. Muhammad, Abubakar-Gwandu Sameerah, Dr. Ahmad M. Kumshe.

 *NORTH CENTRAL ZONE TAX APPEAL TRIBUNAL – SITTING IN JOS, PLATEAU STATE: Barr. Richard Bala (Chairman), Barr. Emmanuel Seungwa Ukera, Ogbaenyi Ivan Chikwendu,Member, Abdul Zaidu IddeMember, Mrs. Atoki Dupe.

*SOUTH WEST ZONE TAX APPEAL TRIBUNAL – SITTING IN IBADAN, OYO STATE: Ajibola Akinmade (Chairman), Atitola Felix Bimbo, Falade Sufian Alani, Mrs. Queensley S. Seghosime, Princess Elemanya Ebilah.

*SOUTH EAST ZONE TAX APPEAL TRIBUNAL – SITTING IN ENUGU, ENUGU STATE: Chukwuemeka Eze (Chairman), Ide John Udeagbala, Anyaduba John Obiora, Mazi Nnamdi Okwuadigbo, Obri Francis Ogar.

* SOUTH SOUTH ZONE TAX APPEAL TRIBUNAL – SITTING IN BENIN, EDO STATE: Odiase-Alegimenlen Obehi (Chairman), Ala Peters David, Mrs. Hilda Ozoh,  Ajokwu Vitalis Friday, Otusanya Olatunde Julius.

 

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Finance Latest News

Nigeria: 5 Tax Amendment Bills, 2 Executive Orders Coming, Says VP Osinbajo

Vice President Yemi Osinbajo (in white) with Tunde Fowler at the opening of 20th CITN Conference on tax at the NAF Center, Wednesday in Abuja. Photo/FIRS
Vice President Yemi Osinbajo (in white) with Tunde Fowler at the opening of 20th CITN Conference on tax at the NAF Center, Wednesday in Abuja. Photo/FIRS

 

Nigeria: 5 Tax Amendment Bills, 2 Executive Orders Coming, Says VP Osinbajo

Five Tax Amendment Bills and two Executive Orders are coming, Nigeria’s Vice President Yemi Osinbajo announced Wednesday in Abuja.

The tax Bills and Executive Orders are aimed at simplifying tax payment process and reducing tax burdens on Small and Micro Enterprises (SMEs) in the West African country.

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The Vice President said the Federal Government’s Committee on the National Tax Policy (NTP) had drafted the five amendment bills and two Executive Orders all of which will be presented to the Federal Executive Council (FEC) for approval. This is in collaboration with states and other stakeholders to ensure that Nigeria’s tax laws and the NTP are friendly and realistic.

A statement on Wednesday by the Head, Communication and Servicom Department of the Federal Inland Revenue Service (FIRS), Wahab Gbadamosi, quoted Osinbajo to have said: “Our tax system requires review, to among others, ensure removal of obsolete and contradictory clauses. That was why we raised a committee in 2016. The committee’s work has produced five amendment bills that will soon be sent to National Assembly. Our aim is that no one is left at the mercy of bad tax regime.

“I am happy at new levels of cooperation between states and the Federal Government which we have seen in the implementation of VAIDS. I am pleased to note that the number of registered taxpayers is now in excess of 19 million”.

The Vice President, according to the statement, said the embrace of technology to collect taxes and to block leakages in public expenditure—like the Treasury Single Account (TSA) and accompanying transparency in public expenditure, — are significant game changers. He compared the changes this brought about to the impact which invention of electricity had on people’s lives when it was invented.

“Osinbajo who spoke ex-tempore noted that the CITN conference held on the day when Chief Obafemi Awolowo died some 30 years ago. He noted that free education, which was funded solely from revenue from taxes, ensured a spiral in school enrolment in the old Western region-from 355,000 in 1952 when it was introduced to 811,000 in 1959. It was the highest in Africa at the time.

The Vice President noted too that key infrastructural provision in Western Nigeria: University of Ife, Airport hotel in Ikeja, 25-storey building Cocoa House building in Ibadan, several industrial estates in many parts of the Western Region, were made possible by tax money from people’s pocket.

Citing further statistics about national revenue collection, the Vice President observed that Lagos alone generates more Internally Generated Revenue than over 30 states combined. “Of the 70 million taxable individuals, only 14 million pay any form of tax. Of the 943 individuals who pay any form of Self-assessment and who pay above N10 million, 941 live in Lagos State. Two live in Ogun State.

The Vice President who observed that tax is not a subject that excites most people in the world, said tax is a social-contract question that should bind citizens and trigger robust interest in governance, accountability and democracy. He recalled that it was tax that triggered the slogan “No taxation without representation” that was the rallying cry for the American War of independence. Tax, he said, was also at the root of the riots in Aba and Abeokuta- both led by women.

He noted the gains of over N200billion which the Federal made from the deployment of technology to track ghost workers and the Treasury Single Account (TSA) from whence the Federal Government has made savings of about N4 billion monthly. This has strengthened its ability to spend more on infrastructure, he said.

The VP said the economic prosperity of Nigeria will come from taxation and encouraged taxpayers to always tax right taxes at the right time as that is the fulfilment of their responsibilities as citizens.

At the same event, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Tunde Fowler, said the Service is building a robust that system that is making tax payment convenient to taxpayers both at the federal level and at the states and local government levels.

“What we are doing is to build a tax system that will not only be effective at the Federal level but also at the states and local government levels. Nobody wants to pay taxes. Not even the tax administrator. So, we have to make tax payment convenient and attractive. Attractive in the sense that people must see what you are doing with the tax money. That is what the FIRS and the Joint Tax Board (JTB) are doing”, he said.

Fowler said it is the culture of the JTB to go to the states to inspect projects that state governments are handling. By doing that, he said, “states which are not doing well get inspired by their counterparts who are using money from taxes well to build facilities for their people.

 “The only way you can improve the tax system is through technology. FIRS has rolled out six-online solutions through which you can pay your taxes online (e-payment), e-receipt. You can download your receipts and authenticate the receipts using your smart phones. We have e-Stamp duties, e-filing, e-Withholding Tax e-alerts, e-payment, e-Tax Clearance Certificates, (etc).

“Our job is like that of a medical doctor, we ensure that businesses are healthy. It is when businesses are healthy that they can make profits and pay taxes.

We have changed the orientation of our staff to make them see their jobs as stewardship. We let the staff know that they are there to serve the taxpayers”.

The theme for this year’s CITN conference is Institutionalising Taxpaying Culture in Developing Economies.

CITN President, Cyril Ikemefuna, said theme for the year was crafted given the need for a change in the taxpaying culture in Nigeria”, said the statement.  

Categories
Africa Finance

Nigeria extends tax amnesty with more 3 months

VAIDS extended to June 30th, 2018
VAIDS extended to June 30th, 2018

Nigeria extends tax amnesty with more 3 months

Nigerian government on Wednesday approved the extension of tax amnesty programme—the Voluntary Assets and Income Declaration Scheme (VAIDS)—to June 30.

VAIDS is an opening for defaulting taxpayers to come up and pay the taxes owed without facing additional charges as stipulated by law. Nigeria started the VAIDS programme on July 1st 2017 and said it would end on March 31st.

Vice President, Yemi Osinbajo communicated the approval at the Federal Executive Council meeting (FEC) held today, noting that no further extension of time will be approved after June 30.

Quoting President Muhammadu Buhari as cited by the official tweeter handle @NGRPresident, “For a nation of people who are competitive and driven, it is not a pride that we are the lowest performer in tax to GDP, not just in Africa, but in the world.

“Nigeria’s growth needs are such that every Nigerian must do his duty to his nation, to his neighbour, and to himself.

“Hiding monies overseas, evading taxes by manipulation, and other unwholesome practices, have never developed a country, and for Nigeria to attain her true potential, these must stop.

Newsmen equally gathered that the short extension after the original March 31 date was based on the appeals of professional bodies and individual taxpayers.

However, ‘no further extension of time will be approved after June 30’Presidency said.

The President added that a new date was also given, based on the conviction of @FinMinNigeria that the overall objective to increase compliance will be attained, and additional revenue will accrue.

A fresh Executive Order will be made to give legal backing to the new timeline.

The President urged Nigerian companies and individuals to join government in the rebuilding mission, “and do the right thing by taking this window of extension to regularize.”

He added that the right thing may not be convenient or comfortable, “but in the long run, we will all have a nation we can be proud of.”

President Buhari further urged tax authorities to use the extension window to perfect plans to prosecute those who fail to regularize their tax status.

He further said that ‘VAIDSNG’ is one of the key policies being used by the Federal Government to reposition the Nigerian economy and correct inherited underdevelopment.

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Africa Finance Latest News

Nigeria Fishes Out New 130,000 High Net Worth Tax Defaulters

Nigeria's Finance Minister, Kemi Adeosun
Nigeria’s Finance Minister, Kemi Adeosun

 

Nigeria Fishes Out New 130,000 High Net Worth Tax Defaulters

 

Nigeria’s Ministry of Finance has said it has fished out another batch of over 130, 000 high net worth individuals and corporations who evade taxes.

The Ministry said its data mining project called “Project Lighthouse” identified the tax defaulters.

A statement we obtained from the Voluntary Assets and Income Declaration Scheme (VAIDS) platform on Tuesday read: “The Federal Ministry of Finance data mining project called “Project Lighthouse” has identified a new batch of more than 130,000 high net worth Nigerian individuals and companies that have potential tax underpayments”

According to the Minister of Finance, Mrs Kemi Adeosun, this information was compiled in preparation for the closure of the Scheme on March 31, 2018.

The Minister, according to the statement which was also tweeted through VAIDS tweeter handle @VAIDNG said: “We’ve collected the data from a number of sources including land registries of the Governments of Lagos, Kaduna, Kano & Ogun States as well as the Federal Capital Territory. We’ve also been able to request and receive data from a number of nations including traditional tax havens,” she said.

Information on the VAIDS platform added: “The Minister further stated that the Automatic Exchange of Information is being used to mine data overseas. Under the Automatic Exchange of Information (AEI), information relating to bank records and financial filings for tax purposes is obtained from tax havens like British Virgin Islands, Mauritius and other participating countries that are signatories to Information exchange agreements.

Mrs. Adeosun reiterated that the data coming from abroad will be used ONLY for taxation purposes in line with the protocols governing the exchange of information. “Our only interest in the data is in raising tax revenues. There‘s no hidden agenda whatsoever on the use of the data,” she said”

Federal government of Nigeria launched the tax amnesty scheme in June 2017 to encourage tax defaulters come forward and clear their tax liabilities without facing commensurate sanctions.

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Africa Finance Latest News

Tax Revenue: Nigeria Uncovers 500 Oversea Property Owners

Tunde Fowler, Chairman, African Tax Administration Forum. Photo credit/FIRS
Tunde Fowler, Executive Chairman, FIRS and Chairman, African Tax Administration Forum. Photo credit/FIRS

 

Tax Revenue: Nigeria Uncovers 500 Oversea Property Owners

 

In their bid to raise tax revenue against unstable oil prices, Nigeria’s Government has compiled a list of 500 prominent Nigerians with property and trusts abroad, to determine their tax compliance status.

The 500 prominent Nigerians, according to her, will receive their letters beginning from Monday, asking them to take advantage of the tax amnesty to regularize their tax status and avoid prosecution and fines.

The government has also recruited and trained 2,190 Community Tax Liaison Officers (CTLOs) under the Voluntary Assets and Income Declaration Scheme (VAIDS).

Minister of Finance, Kemi Adeosun, said that 1,710 CTLOs had already been deployed to 33 states, out of the number recruited and trained. She said that their task was to raise awareness about the scheme and taxation in general. She said that the CTLOs were currently operating in Adamawa, Cross River, Delta, Edo, Enugu, Kaduna, Kwara, Lagos, Nassarawa, Niger, Ogun and Oyo states among others.

In a statement by her Special Adviser, Media and Communications, Mr Oluyinka Akintunde, Adeosun said there was no hiding place for evaders residing in Nigeria or abroad, noting that the Federal Government had put in place a data mining mechanism to fish out evaders.

“The unique cooperation between the various arms of Federal Government, state governments and foreign governments has provided an unprecedented level of data that allows the Nigerian Government to profile taxpayers accurately.

 “We are now able to identify those whose lifestyle and assets are not consistent with their declared income. “A lot of data mining is going on daily, both locally and internationally, on property ownership and other items. Data is an extremely powerful tool that is now being utilized.

“For instance, we have reviewed all companies that received major payments from the Federal Government in the last 5 years and found that even those who made money from government, under-declared,” she said. Adeosun said that the tax compliance team had looked at import records and compared the value of goods imported to the tax declarations of the importers, but the discovery was worrisome as “the variance was disturbingly wide”.

“On personal income taxes, we reviewed property and company ownership as well as registration of high value assets and foreign exchange allocations, which gives us a sense of the lifestyles of the persons. “But again, we found major non-compliance. In some cases, people declared as little as N10 million as income but purchased expensive property overseas and in Nigeria.

“They also registered high specification vehicles and funded luxurious personal events costing multiples of the declared income,” she said.

 Adeosun said that now, with the centralisation of data under Project Lighthouse within the Federal Ministry of Finance, a major tax loophole has been plugged. She reiterated the willingness of the Federal Government to prosecute tax evaders after the tax amnesty period had elapsed.

VAIDS, an initiative of the Federal Ministry of Finance in collaboration with the State Revenue Authorities, is a revolutionary programme that provides tax defaulters a nine-month opportunity to voluntarily and truthfully declare previously untaxed assets and incomes. The tax amnesty period is expected to lapse on March 31, 2018. Job creation is one of the spin-offs of the VAIDS initiative, with the scheme expected to create 7,500 opportunities for Nigerians as CTLOs through the N-Power scheme of the Federal Government.

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Business

African Tax Experts elected Vice Chairmen

Tunde Fowler, Chairman, African Tax Administration Forum. Photo credit/FIRS
Tunde Fowler, Chairman, African Tax Administration Forum. Photo credit/FIRS

African Tax Experts elected Vice Chairmen, UN Tax Committee

 

For the centrality of tax to development today; and that developing tax now involves more countries and more civil societies, the newly inaugurated Committee of Experts on International Cooperation in Tax Matters, yesterday elected its leadership to advance these fronts.

Two African tax experts, Tunde Fowler, Executive Chairman, Federal Inland Revenue Service (FIRS), was elected as 1st Vice Chairman while Eric Nil Yarboi Mensah, the Chairman of Ghanaian Revenue Authority, GRA is the  2nd Vice Chairman of the Committee.

 The committee is meeting for the first time after the appointment.

This election took place yesterday in Geneva, Switzerland, where the global UN committee of tax experts is holding its meeting.

United Nations Secretary General, Antonio Guteress, announced the appointment of the 25 members in a United Nations Economic and Social Council notification dated August 10th, 2017. The 25 tax experts were headhunted across the globe to sit in the Committee and proffer solutions to issues on international taxation and cooperation.

Five, out of the 25 new entrants into the prestigious Committee are Africans: Tunde Fowler, the Executive Chairman of Nigeria’s revenue authority—Federal Inland Revenue Service (FIRS). He is also the Chairman of African Tax Administrations Forum (ATAF); Elfrieda Stewart Tamba, the Chairman of the Liberian Revenue Authority and Chairman of West African Tax Administrators Forum (WATAF); Margaret Moonga Chikuba, the Chairman of the Zambian Revenue Authority.

Others are Eric Nil Yarboi Mensah, the Chairman of Ghanaian Revenue Authority and George Omondi Obell, the Chairman of the Kenyan Revenue Authority.

The appointment is in accordance with the United Nations resolution—the Economic and Social Council resolution 2004/69—which established that “only 25 tax experts selected from among all countries of the world are needed to join the Committee of Experts on International Cooperation in Tax Matters, within an interval of every four years”.

Other tax experts in the Committee are: Natalia Aristazabal Mora (Colombia); Abdoulfatah Moussa Arreh (Djibouti); Rajat Bansal (India); Mitsuhiro Honda (Japan); Cezary Krysiak  (Poland); Eric Nil Yarboi Mensah (Ghana); Dang Ngoc Minh (Vietnam); Patricia Mongkhonvanit (Thailand); Marlene Patricia Nembhard-Parker (Jamaica); Carmel Peters (New Zealand)

Others are: Carlos E. Protto (Argentina); Antonio Deher Rachid (Brazil) Aart Roelofsen (Netherlands); Christoph Schelling; (Switzerland); Aleksandr Anatolyevich Smirnov (Russia); Stephanie Smith (Canada); Titia Stolte-Detring  (Germany); José Troya (Ecuador); Ingela Willfors  (Sweden); Yan Xiong (China) and Sing Yuan Yong (Singapore).

Their mandate is to brainstorm always and offer, from their wealth of experience, knowledge of how the world can manage taxation for international development and cooperation.

Guteress, who signed the notification of appointment stated that a total of 60 nominations were received for the 25 positions in response to a note verbale, dated 27 April 2017, in which the Secretary-General invited Member States to nominate qualified candidates for selection into the Committee.

Michael Lennard, Chief of International Tax Cooperation at the United Nations, in a brief remark as the meeting commenced, underscored the importance of the important work the team need to do given the centrality of tax to development today.

Said Lennard: “Developing tax now involves more countries, more civil societies, including NGOs more Small and Medium Enterprises, SMEs, more individuals, not just more Multinationals. More women. There is a lot more women on our tax committee this year. And more young people. There is a bigger debate.on.

“Enlarging the people involved in this debate not just in subject matter, but also generationally which I think is important in this matter.

“I also commend the organisers for addressing some of the trickiest, most nuanced areas of taxation, the ethical dimension, the issue of tax transparency and the issue of tax competition: a very, very difficult area. They are all the more important because of their difficulty.  

“Taxes are at the centre of conflict and development and lifting people out of poverty and degradation and helping them to meet their potentials for the benefit of everyone. Putting that into context, the discussions today and the work of Tax Coop (Cooperation) at the South Centre, it’s all the more important that it is held in the heart of the UN.

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