Tax Reform: Author Advocates “catch Them Young” Initiative, Independent Revenue Inspectorate

By Emmanuel Oloniruha

Chief Philip Orji, an writer and tax reform advocate, has referred to as on the Federal Government to introduce tax schooling in secondary faculties and set up an unbiased income inspectorate to enhance transparency in tax administration.

Orji made the decision in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja, forward of the launch of his guide titled “Global Tax Heist: How Multinationals Undermine the Wealth of Nations.”

NAN experiences that the general public presentation of the guide is scheduled for Nov. 11 on the Shehu Musa Yar’Adua Centre, Abuja.

Speaking on his proposed “Catch Them Young, Tax Transparency and Accountability Initiative,” Orji pressured the necessity to educate younger Nigerians on public finance and company taxation earlier than they enter the workforce.

“Young Nigerians are yet to know about tax. Tax awareness ought to reach our local elites and parents through their children who attend senior secondary schools.

“When young people read my book, the question they ask is, ‘Why not borrow ideas rather than borrow money?’

“If our children are caught young, they will understand that paying tax is not just an obligation, but a demand for accountability, asking, ‘what do you gain when you pay your taxes?’” he mentioned.

Orji, who’s National Coordinator, Association of Concerned Citizens of Nigeria on Revenue and Economy (ACCNRE), additionally proposed an unbiased income inspectorate to curb leakages in tax assortment.

The tax analyst mentioned Nigeria continues to lose over 50 billion {dollars} yearly in untapped worldwide tax income due to systemic audit gaps.

According to him, the gaps embody an absence of specialized oversight and restricted integration with worldwide frameworks such because the Organisation for Economic Co-operation and Development (OECD).

To bridge the gaps, he proposed the institution of the Independent Revenue Inspectorate Agency of Nigeria.

“You cannot be a judge in your own case.Currently, revenue collection authorities audit themselves and issue their own receipts, which is fundamentally flawed.

“An independent tax inspectorate would not collect tax directly; it would inspect receipts of what was collected and report to the National Assembly every three months to ensure total accountability,” he mentioned.

Orji mentioned nations akin to Kenya, Uganda, South Africa and Ghana had efficiently deployed tax inspectors and aligned with international requirements such because the Foreign Account Tax Compliance Act (FATCA).

He added {that a} tax inspection company would assist curb tax evasion and a number of taxation in Nigeria.

The advocate mentioned larger tax charges didn’t translate to larger income, including that transparency and public belief drive compliance.

“Tax increases do not bring money; what brings money is transparency and accountability.

“Ghana previously charged higher Value Added Tax (VAT) rates, but when they reduced rates on essential commodities consumed by the poor, they actually generated more revenue because compliance and accountability improved.

“When people pay taxes blindly without transparency, it breeds inefficiency,” he mentioned.

He additionally likened tax waivers to “robbing Peter to pay Paul,” arguing that they provide little profit to odd residents whereas closely enriching beneficiaries.

Recalling his legislative advocacy courting again to 2017, Orji mentioned his proposed invoice for a National Tax Crimes Commission reached key phases within the eighth and ninth National Assemblies.

He mentioned the invoice handed first and second readings in each chambers, however stalled due to the final election cycle.

Orji expressed optimism that his guide would assist Nigeria get tax income proper, saying tax assortment remained the hallmark of any nation’s prosperity.

“If we connect with global best practices and institutionalise transparency today, Nigeria will no longer need to rely on external loans to finance its national budget,” he mentioned.

Mr Raymond Nnah, Chairman of the guide launch planning committee, mentioned Nigeria had uncared for taxation due to its over-reliance on pure assets akin to oil, fuel and gold, which had been affected by corruption.

Nnah mentioned most affluent nations survive totally on taxation reasonably than mineral assets.

“If we educate our children on taxation and also adopt the recommendations from this book, Nigeria will be better than Singapore and other Western countries.

“We have lost a lot in taxation, both in multinationals and individuals,” he mentioned.

On why residents are reluctant to pay taxes, Nnah mentioned folks concern taxation due to an absence of accountability and visual public infrastructure.

He mentioned residents would willingly fulfil their tax obligations once they see purposeful roads, electrical energy, water and healthcare amenities supplied by the federal government.

Describing the guide as fully non-partisan, Nnah mentioned it was not tied to any political occasion or authorities, however was meant to assist all Nigerians perceive the function of taxation in societal progress.

He mentioned that regardless of Nigeria’s immense wealth potential, wealth remained concentrated within the arms of some, whose funds have been usually stashed overseas, leaving the final populace in hardship.

Nnah urged native and nationwide leaders to offer correct public facilities in order that residents might see direct worth for his or her taxes.

Also talking, Mr Bede Ihentuge-Ekeh, a member of the planning committee, expressed concern over the nation’s reliance on borrowing regardless of untapped tax potential, citing monetary bottlenecks and weak checks and balances.

Ihentuge-Ekeh, popularly pressured the necessity to assessment the operational framework of income companies, such because the Nigeria Revenue Service, to accommodate unbiased oversight, steadiness accounts, and forestall institutional monopolies over income assortment.

“Ordinary businesses have audits and balancing of accounts. FIRS cannot be a judge in its own cause.

“There should be a parallel agency, one collecting the money while the other keeps the receipt, to ensure transparency,” he mentioned.

He maintained that Nigeria’s income technology capability would enhance considerably if the suggestions within the guide have been adopted and totally applied.

He additionally pressured the necessity for early tax schooling, citing outreach visits to city and rural communities.

“When we went to educate children and asked if their parents knew about tax, we found out that parents are always afraid when they hear about taxation.

“They don’t know there is something in it for them, that taxes paid can act like loans to the government or that they are entitled to refunds and Value Added Tax (VAT) rebates at the end of the year if proper records are submitted.

“If we implement what is in this book and teach taxation in schools, our children and future generations will grow up fully understanding how the system works,” Ihentuge-Ekeh mentioned.

Dignitaries anticipated on the launch embody the Minister of the Federal Capital Territory (FCT), Chief Nyesom Wike, as chief host, and the Deputy Speaker of the House of Representatives, Rep. Benjamin Kalu, as keynote speaker.

The Director of the Institute of Capital Market Studies, Prof. Uwaleke Joseph, will assessment the guide.

Special friends of honour anticipated embody Senate President Godswill Akpabio, Speaker of the House of Representatives Tajudeen Abbas, former Vice-President Atiku Abubakar and former Anambra Governor Peter Obi.

Others anticipated are Govs. Francis Nwifuru of Ebonyi and Alex Otti of Abia, the Minister of State for Foreign Affairs, Amb. Bianca Odumegwu-Ojukwu, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, and the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji, amongst others. (NAN)

(Edited by Emmanuel Yashim)