Nigeria revenue profile affected by tax non-remittance – FIRS

The Federal Inland Revenue Service (FIRS) has identified non-compliance with tax laws, other legislation and remittance to wrong accounts as some of the challenges of tax collection in the country.

Akinyemi Oluyide, state monitor, FIRS, Oyo State Government Business Tax Office, who disclosed this during a workshop with the theme, ‘Effective Partnering for Compliance by Ministries, Departments and Agencies in the South-West zone’ held in Ibadan, also said incomplete schedules from MDAs and wrong classification of tax payment were part of the problems with tax collection.

While saying Nigeria’s revenue profile was negatively affected by non-remittance of tax and disrespect for tax laws in the country, Oluyide said federal and state MDAs and local government councils were guilty of the offence because of the way they handle contracts funds.

In a paper delivered by Oluyide titled, ‘Agency arrangement in tax collection: Roles and responsibilities of collecting agents,’ urged collection agents to device a functional system of collecting tax.

He also urged tax officers to exhibit professionalism on the job, saying with the support and collective responsibility of agents, Nigeria would experience greater transformation and revenue collection performance.

According to him, all MDAs and other collecting agents are required to ensure compliance with the provisions of relevant tax laws and collection arrangement. There is need for effective record management and full automation of the tax administration with the provision of modern infrastructure.

In her own presentation, Olayinka Adenikinju, head of Ibadan District Women Society in Taxation, said there should be cooperation between tax authorities and MDAs and called for education of all those involved in tax administration.

“Community leaders should be engaged in tax campaign in order to have a committed community that shares the belief in tax payment.

“Lack of feedback impact on the expectation of tax payers from government and loopholes in tax laws that allow for tax avoidance leading to evasion should be adequately addressed,” she said.

Samuel Ogungbesan, acting executive chairman of FIRS, said the programme was put in place to provide avenue for FIRS and tax payers to interact.

Ogungbesan, who was represented at the event by Olufemi Faniyi, director, Government Business Tax Department, FIRS, said the workshop was an opportunity to share ideas and proffer solutions to the various challenges of tax administration in the country.

REMI FEYISIPO