Tax payers asked to form association

Tax payers asked to form association

Taxpayers have been
asked to come together and form associations and pressure groups to
address common issues, press for their rights, channel their demands to
the government, and obtain better services.

Ifueko Omoigui
Okauru, executive chairman, Federal Inland Revenue Service (FIRS), said
this would encourage a two-way communication between the government and
taxpayers.

Mrs.
Omoigui-Okauru, who said this recently, added that there is strength in
unity, and taxpayers could achieve more by coming together, rather than
by going through the struggle alone.

“I really want to
see a situation where taxpayers form themselves into associations, into
some lobby groups,” a statement from Wahab Gbadamosi, a media
consultant to FIRS, said.

“I think it is a good idea”, Stephanie Olorunshola, a client service consultant in a PR firm in Lagos said.

“When there is a
union, there would be a better platform to address issues of employees
who have their salaries taxed, without anything to show for it, from
the employer, as receipts or from the government, in terms of its
responsibility to the government.

“Employees can make
their stand known, demand for notification whenever their taxes are
paid, and take the necessary actions when they are not,” Ms.
Olorunshola said.

However, Laruba
Owa, a visual artist, said “How realistic is it for us, all tax payers
in Nigeria, to form an association? All these would not have been
necessary if we had responsible hands.”

Voluntary compliance is important

Mrs. Omoigui Okauru
noted that voluntary compliance is the best for taxpayers and the tax
authorities, given the low level of tax education. Though the legal
option and enforcement are available, FIRS employs this as the last
resort.

“Nigeria cannot be
called a tax paying nation, judging from what is obtainable in other
nations. Our compliance level is low. And people are not knowledgeable
about tax.

“In some countries,
people get jailed for not paying their taxes. But in Nigeria, where
people are not very knowledgeable about taxation, jailing such
defaulters cannot be considered as a solution, but this could come as a
last resort,” Mrs. Omoigui Okauru said.

On multiple
taxation and issuance of Tax Clearance Certificates, TCC, she said that
FIRS was working towards correcting some abnormalities in the process:
“We have received complaints from some quarters about the confusion
caused by multiple taxation.”

She, however, said
the constitution is very clear on this, and that the institution is
working to see that the abnormalities are corrected.

Multiple taxes, a
situation where the same income is subjected to more than one tax
treatment, and unauthorised and unclear charges, are fast crippling
businesses in the country.

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