The Chartered Institute of Taxation of Nigeria (CITN) has inducted 826 new associate members as certified chartered practitioners in the field of taxation, decrying the increasing rate of tax revenue leakages in the digital economy.
The President of CITN, Mr Adesina Adedayo, said at the 47th induction ceremony of the institute in Lagos that the exercise was a mechanism to grow the tax administration system of the country.
Adedayo said despite the advantages linked to the expansion of the digital economy, challenges arising from tax implications of the digital economy were perhaps the most urgent that bedevils revenue authorities, policymakers, international organisations and tax professionals.
He said that tax administration in Nigeria remained unclear on the most effective and efficient way to tax the digital economy, saying that the challenges arising from technological advancement and intricate business models continue to mount; thus, increasing the likelihood of tax revenue leakages.
He listed efforts made by the international and regional bodies to address the issues.
According to him, some of which include the United Nations Guidelines on Transfer Pricing, efforts to regulate Base Erosion and Profit Shifting through the BEPS projects, OECD Transfer Pricing Guidelines and ATAF guidelines on intangibles among other unilateral and bilateral efforts.
“It is therefore, behoves on us as tax professionals, to constantly enage and contribute meaningfully to the Country Impact Assessment of the OECD tax deal in Nigeria.
“To effectively achieve this, I implore you, the newly inductees to constantly upskill your knowledge on global trends and developments in taxation.
“The induction signifies commitment on the part of the inductees to become ambassadors of the profession at all times,” Adedayo said.
In his keynote address, the Executive Chairman, Bayelsa State Board of Internal Revenue, Mr Nimibofa Ayawei, said that over-independence on Federation Account Allocations Committee (FAAC) allocation for financing states budgets was detrimental to the states’ development.
Ayawei said that it becomes more worrisome when states’ Internally Generated Revenue (IGR) are not able to meet their recurrent and capital expenditures.
According to him, enhancing and sustaining IGR have continued to be a major task for states governments, stressing the need to bridge the gap between revenue resources and budgetary needs to boost IGR levels.
While he explored some ways states could improve on their IGR collections, he urged States Internal Revenue Service (SIRS) to be up and doing to improve on their collections.