Experts: Transparent, Accountable Tax System Will Boost Compliance, Reset Economy

James Emejo and Sonia Mayomi in Abuja

Transparency and accountability remain the blueprint to an effective and efficient tax system, experts have stressed.

Tax expert and the National Coordinator, Association of Concerned Citizens of Nigeria on Revenue and Economy, Mr. Orji Philip Orji who stated this during a press briefing in Abuja also called for speedy passage of the proposed National Inspector General for Tax Crime Commission (NIGTCC) for effective and proactive taxation system in the country.
He said a restructured tax administration, comprising independent tax auditors and investigators is crucial to achieving a good tax system.

He said for the government to win public trust and encourage voluntary compliance to tax payment by citizens, a transparent system was inevitable.
Orji noted that though tax transparency remained a topical issue globally, countries have had to borrow a leaf from other successful nations in an attempt to perfect their domestic tax administration – and urged the federal government to tow same path.

He said, “Most of the countries that are doing well today in their taxation passed through challenges that may be more than ours at the moment. So, that is why I refuse to lament in our situation because it is not insurmountable and lamentation does not solve problems.”

Orji said Nigeria remains a member of the Organization for Economic Cooperation and Development (OECD) which stipulates that its member countries should have an independent auditors and external investigators for the purpose of checks and balance on taxation in their respective jurisdictions.

Orji, however, expressed concerns that Nigeria has no database to share automatic information against international tax evasion, transfer pricing and illicit financial flow of the OECD global programmes and operation since joining the organisation in 2018.
He stressed that the country’s current economic challenges could be mitigated through a well restructured and proactive taxation system.

He said a bad taxation system constituted a threat to human rights, security, democracy and economy, adding that, “a weak taxation system is dangerous than pandemic such as Ebola or COVID-19 because it kills on a daily basses.”
He urged the Nigeria Labour Congress (NLC) and other civil society organisations and rights groups to take up the challenge and demand for tax transparency in the country.

He noted that some of the laudable reforms in tax administration were carried out during the military era.
He said, “But, from the inception of democracy since 1999 till date our legislatures have not visited tax in more efficient manner, in that regard the Federal Inland Revenue Service were made to be a judge in their own case, which must result in an obvious temptation and work overload in that respect.”

He said, “Our outdated method of taxation is no longer obtainable in the world, the risk posed by Electronic Service Delivery (ESD) has proven that countries no longer have the luxury to operate in isolation.

“So, any country that fail to innovate will waste the benefits in taxes like the transfer pricing. What we are demanding is for the National Assembly to fast track this bill (Tax Crime Commission) so as to rekindle our people’s lost confidence in our government.”