Executive Chairman, FIRS, Mrs. Ifueko Omoigui-Okauru
With barely few weeks to the implementation of the Central Bank of Nigeria (CBN) policy, which seeks to limit the use of cash in the economy, the Federal Inland Revenue Service (FIRS) has described the policy as an opportunity to expand the country’s tax base.
Executive Chairman, FIRS, Mrs. Ifueko Omoigui-Okauru, said this at an inaugural Chief Financial Officers (CFO) Forum, organised by KPMG in a Lagos at the weekend.
The CBN had said that from June 1, 2012, daily cumulative cash withdrawals and lodgements by individuals and corporate account holders would be pegged at N150, 000 and N1million respectively. However, the pilot scheme is expected to take off in Lagos by January 1, 2012.
Omoigui-Okauru whose speech was titled: “Future Direction of Taxation in Nigeria,” insisted that the ‘cashless’ economy policy was an opportunity to expand the country’s tax base.
She explained: “But we must ensure that we track the processes so that we don’t have situation where people use that as an opportunity to evade tax. So these are all issues that we are looking at. Our technology department must have initiatives in the Information Communication Technology area all to show the way the tax system is to be operated under the ‘cashless’ economy policy.
“The ‘cashless’ economy policy would help us bring the informal, into the formal tax net and increases government’s revenue. So, one of the things that we need to do is to mobilise more resources, strengthen our tax system and also widen the tax base. It is also important that all those outside the tax net are brought in.”
She also said that the FIRS would improve on its investigation and enforcement in a manner that would be practical and result oriented. We are developing a policy that would focus more on risk based audits.
However, Omoigui-Okauru, lamented that the body had not been very effective in the enforcement and investigation of cross-border companies.
The FIRS boss harped on the need for the CFOs of various organisations that attended the forum, to collaborate with the revenue body, in order to ensure growth in the country’s revenue base.
“If there are issues you (CFOs) think would be beneficial to the system, just bring them up. By that way we can support you (CFOs) better. You are the major stakeholders to help improve the tax system. So we expect you to be involved in all the processes and play both proactive and reactive roles, so that we can improve from where we are,” she explained.
According to her, policies such as the proposed sovereign wealth fund, the move to remove the fuel subsidy, the agitation for more revenue by governors, amongst others, were as a result of the country’s poor revenue base.
Omoigui-Okauru added: “This is not peculiar to Nigeria, but to all developing and developed countries. And so when you see us reforming our tax system, just put behind your mind that the idea is not to be wicked, but for us as regulatory authorities to do what the tax law says we need to do.”
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