Lack of good governance responsible for tax evasion in Nigeria – Experts

Some solicitor and tax practitioners in Nigeria have decried increasing revenue losses to illegal act of tax evasion which denies government at all levels a large chunk of money in form of internally generated revenue, saying lack of good governance responsible for the bad economic trend.

Both Olusola Idowu, the Senior Advocate of Nigeria and Gbenga Adeoye, a holder of PhD in taxation and tax management condemned ‘penny wise, pound foolish’ disposition of many people at the helms of affairs in the country who want eat their cake and have it at the same time, by asking people of taxable ages to pay taxes with little or nothing to show for it.

Speaking at the investiture of Taiwo Raji-led 6th Executive members of Chartered Institute of Taxation of Nigeria (CITN) Abeokuta and District Society, Adeoye who doubles as Guest Lecturer declared that no government or tax authority must expect citizens to pay taxes promptly if little or no efforts have taken to provide required infrastructure that aids socio-economic growth and development.

While talking on the theme “Morality of Tax Evasion: The Immorality of Good Governance in Africa”, Adeoye said that it is unfortunate that government only knows how to collect taxes, but doesn’t know how to use the money judiciously to better the well-being and social lives of its citizens.

“If those paying taxes are not enjoying what those that are collecting it enjoy, then there will be tax evaders. Turning the nation’s assets to personal ones, rigging of election results and all sorts of evils perpetrated by people in power and ultimately, poor or absence of required infrastructure account for tax evasion”, he said.

Also, the Chairman of Event, who is also the Senior Advocate of Nigeria, Olusola Idowu, said, “A revolution has to be taken in tax administration, issues of taxation have lots of responsibilities to socio-economic development. It is very difficult for informal sector to pay tax and reason is not far-fetched, since the government seems to be irresponsible and irresponsive to people’s yearnings.

“That is why tax agency must continue to sensitise people, and it is also important for government and revenue board to tell people every time what they generate, how they spend it and what they do with it, and also guard against multiple taxation”, he declared.

The two of them later agreed that there should be elements of good governance in terms of infrastructure development, rule of law and equity, consensus-oriented decisions and policies which allow for citizens’ inclusiveness and government’s responsivenes to people’s yearnings as well as transparency and accountability for people to comply and pay their taxes regularly.

But, Cyril Ikemefuna Ede, President of Chartered Institute of Taxation of Nigeria (CITN), who administered oath of office onto the new Executive Counxil of CITN Abeokuta and District Society, said, “Every opportunity to serve comes with lots of sacrifices and challenges and the new executives of Abeokuta and District Society must live up to expectations.”

 

RAZAQ AYINLA, Abeokuta