Tax Officials Urged To Be Considerate On Payers, Economy
ISMAIL MUSA
In the face of the current harsh economic situation, tax administrators have been urged to consider the survival of tax-paying firms and citizens, in their bid to meet set targets.
This was one of the highlights at the second edition of Issuers and Investors Alternative Dispute Resolution Initiative (IIADRI), workshop themed “the Nigerian Tax Laws: Matters Arising “.
At the Thursday’s meeting, experts pointed out that many firms and MSMEs have either been closed down or forced out of the country due to huge tax assessments, which worsened their economic plights.
Tax paying firms , they maintained, need to be empowered to excel in their businesses, taking account the high mortality rate of the country’s Micro Small and Medium Scale Enterprises (MSMEs).
While calling for the adoption of Alternative Dispute Resolution (ADR) in resolving tax matter, they also charged tax administrators in the country, to not only focus on the revenue they will get from tax payers, which in most cases, are estimated, but also to be mindful of the growth of companies and individuals that pay tax.
According to them, what is the need of heavy tax burden on dying businesses or unprofitable entities, which has lost potential for growth and creating further employment to alleviate the rising unemployment in the country?
The pace of the workshop was set by the IIADRI, chairman, Moses Igbrude, who in his opening remark, said that that the theme for this year’s symposium was carefully selected to address the numerous complaints raised by corporate organizations on the administration of taxes in Nigeria such as Multiple Taxation, Enforcement Procedures, Dispute Resolution Mechanisms, endless audit cycle etc.
He said that such disputes arising from taxation, which could be handled by Alternative Dispute Resolution (ADR) windows, have always led to protracted litigations and in come case, alleged to have be responsible for exit of some corporate companies from the country, to other countries where tax policies align with growth potentials of corporate organisations.
Vice president, marketing and membership drive, the Institute of Chartered Mediators and Councillors (ICMC), Chidy Martins Lasbrey-, in his presentation “A case for ADR option” maintained that relationship between tax payers and tax administrators has never been cordial, and will never be, thus leading to litigations.
“’ tax administrations are not to suffocate businesses, the people that pay tax must be protected”’ Which is why the ADR provides the third alternative, to quick, timely and cost effective resolution of tax disputes, for the benefit of all parties” Chidy said.
On the issue of bringing the informal sector into the tax net, Ademola Idowu of the KPMG, expressed that the sector is the key driver of Nigeria’s economy and government is fixed at ensuring that they are covered in tax duties, through the new finance Act, which made provisions for Tax Identification numbers (TIN) of firms.
“’ that is geared towards bringing the informal sector into the tax net” he further argued that “you seem encouraged to do that, when you see that the tax you are paying is used judiciously. The government has been doing a lot, but need to do more”’
According to him , in Nigeria, cost of building same kilometre of roads in Nigeria outstrip that of other countries by very high margin, yet the projects will remain uncompleted while that of other countries , same west African countries, are completed on time.
The stakeholders maintained that corporate and citizens that are saddled with tax payment, requires friendly legislation to boost their endeavours, security, provisions of infrastructures to drive their operations amongst other supportive initiatives to further create conducive environment that would further empower many others for future tax payments.
Vice President, Lagos Chamber of Commerce and Industry (LCCI) Gabriel Idahosa, stressed that tax challenges has been unbearable for manufactures, who have to contend with the challenge of providing their own infrastructures, such as roads, power, security amongst all.
Bloated running cost and in some cases unprofitable, yet forms are saddled with heavy tax charges that, can only worsen the plight of the firms, their employees and the overall economy at large, adding that alternative dispute resolution (ADR) need to be applied in tax issues.
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