The need for tax administrators to continuously adhere to the canons of taxation for efficient and effective tax administration cannot be over-emphasized. This is especially necessary to reduce tax controversies and disputes to the barest minimum.
Furthermore, the constantly changing economic landscape requires governments at all levels to develop frameworks that will provide a competitive tax landscape for business, effectively accelerate tax revenues, proactively curb tax evasion, and create opportunities for the country’s teeming population. A situation where the last time the CITA and VAT Act were reviewed was 12 years ago leaves much to be desired. Thus, there is an urgent need for government to reform our outdated tax laws to reflect current economic realities. An efficient way of doing this is to return to the practice of enacting a Finance Act soon after the passage of the annual Federal Budget through which our tax laws can be constantly reviewed in accordance with global best practices.
Government must also be fiscally responsible by being accountable for the revenues generated and thereby win taxpayers’ confidence to improve voluntary compliance.
The FG implemented its VAIDS programme from July 2017 to June 2018 to give defaulting taxpayers the opportunity to regularize their tax affairs with full amnesty. The initiative was modestly successful, and contributed in some measure to the FIRS’ ability to expand the tax net and achieve its record tax revenue collection of ₦5.3 trillion in 2018.
The FG also reconstituted the TAT and inaugurated the new TACs in 2018. This has restored the hope of taxpayers who have been practically left without recourse since the tenure of the last set of TACs expired in 2016.
This edition of the Nigerian Tax Journal summarizes the decided tax cases and administrative pronouncements by RTAs and Tax Administrators in 2018. We have also published, for the first time, an article by an academic; and republished extracts of articles written by some of our tax professionals during the year with references for further reading by users of the Journal.
Click to download and read more on the 2019 edition of the Nigerian Tax Journal.
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