By Joy Odor
The bill establishing Tax Crimes Commission to promote effective tax administration system and deter evasion has passed second reading in House of Representatives.
The Bill Sponsored by Honourable Benjamin Kalu, representing Bende constituency in the 9th National Assembly. on Wednesdaya seek to address revenue leakages emanating from non-payment and under-payment of taxes, irregularities in the assessment, reporting and remittances of taxes.
It is also expected to help prevent and combat tax-related crimes, plug all leakages in the tax administration system and ensure the protection of taxpayers’ rights.
Hon Benjamin Kalu in justifying the bill at plenary explained that “to effectively combat, as well prevent international tax evasion and other transnational organised crimes and abuses of the nation’s financial system, there is need to establish a Tax Crimes Commission which will have adequate capacity to investigate, prevent and combat tax-related crimes.
He added that this will definitely contribute to national security through the prevention of tax-related crimes, prevention of illicit financial flow derived from tax evasion, international tax schemes, cybercrime, etc.
The Abia lawmaker further noted that the Tax Crimes Commission will not function as a law court, and will not duplicate the functions of the Tax Appeal Tribunals established in accordance with section 59(1) of the Federal Inland Revenue Service (Establishment) Act, 2007. He also stressed that it will not have quasi-judicial functions.
“The Commission shall primarily focus on the oversight of the tax administration system, ensuring that the tax authorities discharge their duties within the laws, protecting, promoting and guaranteeing tax payers’ rights, where necessary ensuring the prosecution of corrupt and fraudulent tax officials, ensuring the complete remittances of all public revenues, ensuring the increase of public revenue not through increased taxation but through friendly and appropriate taxation, among other things.
The Commission will ultimately ensure that the five basic qualities of a good tax system, which include fairness, adequacy, simplicity, transparency and administrative ease, are entrenched in the Nigerian tax system” he said.
Speaking on the structure of the bill, the sponsor explained that the Bill comprises thirty-five (35) clauses divided into seven (7) parts and a schedule.
Kalu explained that it seeks to establish the office of a National Inspector-General for the Tax Crimes Commission to promote economic efficiency and an effective tax administration system, detect and deter evasion, fraud and abuse in Nigeria’s tax administration system as well as protect taxpayers’ rights.
“The thrust of this bill is to establish a system for the independent oversight of revenue collection authorities in Nigeria with the aim of promoting the economy, efficiency and effectiveness in the administration of revenue laws, increasing revenue generation through plugging leakages, expansion of the tax net, ensuring fair and transparent tax system as well as protecting the rights of the tax payers.
The passage of this Bill will be of immense benefit to the government and its citizens. The entire nation will be the better for it,” the lawmaker added.
