By Suleiman Anyalewechi
In a bid to block leakages and enhance the revenue collection profile of the Federal Government, the House of Representatives on Wednesday March 6, 2024 passed the second reading of a bill seeking to establish a National Tax Crimes And Oversight Commission.
The Commission, if it becomes operational, according to the bill entitled An Act to Establish The National Tax Crimes And Oversight Commission ,will address revenue leakages emanating from non payments and or under payments of taxes, irregularities in the assessment, reporting and remittance of taxes ,with a view to combating tax related crimes, protection of tax payers rights and other related matters.
While leading the debate on the proposed Act of the National Assembly sponsored by the Deputy Speaker Rt Hon.Benjamin Kalu and eight others, Hon Felix Uche Nwaeke, noted that leakages occur in a situation where tax authorities and unscrupulous officials collude with citizens to under assess tax payers ,thereby underpaying the government.
He also asserted that Governments at all levels record huge revenue losses from incidences of outright tax evasions particularly by multinational corporations and well placed individuals and corporate bodies.
A statement issued on Thursday March 7 by the Media Adviser to the Deputy Speaker, Levinus Nwabughiogu, quoted Hon Nwaeke of blaming non remittances of collected taxes to government coffers as a major factor negatively affecting its revenue profiles .
” To this end ,there is the urgent to need to establish an independent Tax Crimes And Oversight Commission which will have the power to investigate, audit, prevent ,and combat tax related crimes.
“This will prevent international tax evasions and other transnational organized crimes and abuses of the Country’s financial System.
“The bill if enacted into law,will promote economic efficiency,and effective tax administration system, detect and deter evasions, fraud and abuses of Nigeria tax regime ,as well as protect taxpayers, rights ” the statement noted.
Hon. Nwaeke allayed fears of the establishment of the Commission leading to any increases in taxes, adding that it is primarily aimed at strengthening the fiscal system .
“This bill was read the first time on Thursday October 12 2023 . The amount of revenue available to any government determines the extent to which such a Government may be able to provide public services .
“It is a pointer to how far a nation can go in growing and developing its economy. While taxation is considered the most important means of generating public revenue ,it is note worthy that countries that strive to develop, aim at putting in place a fair ,just ,efficient and seamless tax administration system which builds confidence amongst the citizens.
“But it is one thing to fix the tax to be paid ,it is another for the tax collection authorities and assessors to determine the right amount of taxes to be paid in accordance with extant laws .
“The Tax Commission will definitely contribute to our national security through prevention of tax related crimes, illicit financial flow derived from tax evasions ,international tax crimes, cybercrime etc.
“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 as part of global best standards.”
