….As Bill to establish National Inspector – General for Tax Crime Commission scales 2nd Reading

By Gabriel Okoro, Abuja (20-07-2022)

There is hope for a paradigm shift in the country’s tax regime activities as the House of Representatives tightens the noose against under remittance and assessment, non payment of taxes and general leakages in Nigeria’s tax administration in a new Bill to establish the National Inspector General for Tax Crime Commission

The House of Representatives, Wednesday, passed into second reading the Bill for an Act to establish National Inspector – General for Tax Crime Commission.

When in fruition as law, it will address Revenue leakages emanating from non-payment and under-payment of taxes, irregularities in the assessment, reporting and remittances of taxes.

It will also help to prevent and combat tax related crimes, plug all leakages in the tax administration system and ensure the protection of tax payers rights.

Sponsor of the bill, Mr. Benjamin Kalu in the debate of the general principles of the bill, explained that the instrument is to effectively combat as well prevent international tax evasion and other transnational organized crimes and abuses of the nation’s financial system, there is need to establish a Tax Crimes Commission which will have adequate capacity to investigate, prevent and combat tax related crimes.

Mr. Kalu said this will definitely contribute to national security through prevention of tax related crimes, prevention of illicit financial flow derived from tax evasion, international tax schemes, cybercrime, etc. 

The lawmaker representing Bende federal constituency, Abia state noted further that the Tax Crimes Commission will not function as a law court, it will not duplicate the functions of the Tax Appeal Tribunals established in accordance with section 59(1) of the Federal Inland Revenue Service (Establishment) Act, 2007 and it will not have quasi-judicial functions.  The Commission shall primarily focus on the oversight of the tax administration system,  ensuring that the tax authorities discharge their duties within the laws, protecting, promoting and guaranteeing tax payers’ rights, where necessary ensuring the prosecution of corrupt and fraudulent tax officials, ensuring the complete remittances of all public revenues, ensuring the increase of public revenue not through increased taxation but through friendly and appropriate taxation, among other things. The Commission will ultimately ensure that the five basic qualities of a good tax system, which include fairness, adequacy, simplicity, transparency and administrative ease, are entrenched in the Nigerian tax system.
  
Speaking on the structure of the bill, the sponsor explained that this Bill which seeks to establish the National Inspector-General for Tax Crimes Commission to promote economic efficiency and effective tax administration system, detect and deter evasion, fraud and abuse in Nigeria’s tax administration system and to protect tax payer’s rights, comprises of thirty-five (35) clauses divided into seven (7) parts and a schedule. 

“The thrust of this Bill is to establish a system for the independent oversight of revenue collection authorities in Nigeria with the aim of promoting the economy, efficiency and effectiveness in the administration of revenue laws, increasing revenue generation through plugging leakages, expansion of the tax net, ensuring fair and transparent tax system as well as protecting the rights of the tax payers.  The passage of this Bill will be of immense benefit to the government and its citizens.  The entire nation will be the better for it”, Mr. Kalu said. 

Recall that the amount of revenue available to any government determines the extent to which such government may be able to provide public goods and services.  It is a pointer to how far a nation can ensure her growth and development.   While taxation is the most important means of generating public revenue, it is worthy of note that nations that strive to develop aim at putting in place a fair, just, efficient and simplified tax administration system which builds confidence amongst the citizens and as well motivate and encourage citizens to pay their taxes.

END