Nojeem Yusuf, a tax and finance expert, has clarified that former President Muhammadu Buhari introduced the use of third-party technology platforms for tax administration and collection in the Finance Act, 2021.
He added that controversial tax reform bills, sponsored by the Bola Tinubu administration, do not introduce the provisions; they merely maintain the existing legal framework.
According to Section 18(a)4 of the Finance Act, 2021 the Federal Inland Revenue Service “may deploy proprietary or third-party technology to automate the tax administration process including tax assessment and information gathering provided it gives 30 days’ notice to the taxpayer.”
Section 69(2) of the Nigeria Tax Administration Bill, 2024, also states that “A relevant tax authority may deploy any technology, including third party payment processing platform or computer application to collect or remit taxes.”
This section has generated a lot of controversies as critics claimed the federal government is planning to use Alpha Beta, a consulting firm allegedly linked to the president, for collection and administration of tax.
Read also: Bishop Kukah: Tax reform bills could end elites’ financial recklessness
Reacting to the speculation on his X account on Wednesday, Yusuf said the provision was not introduced in the controversial tax reform bills, “they merely maintain the existing legal framework.”
“A section of the Tax return bill provided that a third party can be asked to help in the technology of collection. This is where Alpha Beta will come into play when the tax reform bill is passed. It is just the Lagos model that will be applied to Nigeria,” an X user, @HAHayatu, claimed.
Reacting to the claim, Yusuf said, “Three years ago, President Buhari signed the Finance Act 2021, which includes Section 18. This law allows the use of third-party technology platforms for tax administration and collection.”
“The recent tax reform bills do not introduce the provisions; they merely maintain the existing legal framework.
“If you have an issue with this provision, your focus should be on advocating for its removal from current law, rather than rejecting the new bills,” the finance expert added with a screenshot from the Finance Act, 2021.
On Monday, Taiwo Oyedele, the chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, also debunked the speculation that tax reform bills will empower the federal government to engage Alpha Beta for tax collection.
“We had a very interesting debate at the committee level. I wanted to put language in the law that says no government should use a consultant to collect tax. We think that is one of the biggest problems in our economy today.
“So I can confirm to you 100 percent there is no plan whatsoever in using a consultant to do any of this,” Oyedele said at a town hall meeting hosted by Channels Television.
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