Chukwuemeka Eze is the Chairman of the Southeast Zone of the Tax Appeal Tribunal. A legal adviser to the Lagos Chapter of Association of Certified Fraud Examiners (ACFE), Eze, in this interview with Legal Editor JOHN AUSTIN AUACHUKWU, speaks on the challenges of tax administration, the place of tax in nation building and the way forward for Nigeria’s tax regime.
On inauguration as the Chairman of the Tax Appeal Tribunal Southeast Zone.
I feel like a fish in water. I feel nostalgic and privileged. Since I became a member of the Chartered Institute of Taxation of Nigeria (CITN) in 2008, I have been hooked to taxation as a faithful wife is hooked to her lovely husband.
My foundation having been laid on solid ground through CITN, taxation became a fundamental aspect of my law practice until 2017 when I migrated to lecturing at the Faculty of Law, Nasarawa State University, Keffi. Even there, I am not insulated from taxation as one of my assigned courses is revenue and the law.
Tax regime and laws.
Eze said the tax regime is evolving; it is not gloomy as it was in the past. We have tax experts in all areas of tax practice and administration. A new National Tax Policy was birthed in February 2017 and that the tax laws are being implemented.
The Tax Appeal Tribunal was reconstituted by the Minister of Finance on November 5, 2018. The database of taxpayers has increased from 14 million to 19 million after the implementation of tax amnesty known as Voluntary Assets Income Declaration Scheme (VAIDS). In the internal arena, Nigeria has acceded to the Automatic Exchange of Information Agreement. These and many more activities have changed the narrative in the taxation system.
On the nation’s Gross Domestic Product (GDP) ratio
We still need to do a lot to improve our tax to GDP ratio. We need attitudinal change. We need to imbibe the tax culture through a top-bottom approach. We have to synchronise and integrate all the four purposes of taxation and apply it in a holistic manner that will be beneficial to the society.
Challenges of Tax Tribunal
The major challenge for is how to sensitise stakeholders and disputants to patronise the Tribunal after almost two-and-half years of inactivity. You will recall that the TAT stopped sitting in June 2016 when the tenure of the last Panel of Commissioners expired. Although we were inaugurated on November 5, 2018, many of our individual and corporate compatriots are yet to be aware of the resumption of the sittings of the Tribunal.
Way out of Tax tribunal challenges.
The administrative arm of the TAT has initiated a publicity campaign to inform the members of the public of the new development adding, as we proceed on the job, we expect to see more challenges.
Dependence on tax as major revenue source as against oil
It is possible for tax to become a major source of revenue as against oil. Yes, tax alone has generated more revenue in some countries but it will be impracticable, in the short run, for such transmutation to occur instantly in our clime. We have to work it out until we get to the equilibrium. Oil is a natural resource susceptible to the Dutch Disease.
As a dwindling natural asset, it is not sustainable in the long run hence the necessity to device alternative and sustainable means of revenue generation. This is where taxation comes to the rescue. The level of production in the economy is, however, a veritable factor in the utilisation of taxation as a replacement strategy. Where the means of generating income is weak, tax compliance is usually a hard nut to crack. Our country is a work in progress, and I think we are making progress.
Challenges of implementing tax laws in the country
Nigeria is a federation and that this status has implications with respect to taxation. We have a mixed bag on this matter. The Personal Income Tax Act, which applies throughout the country, is uniform but being implemented by separate states’ Boards of Internal Revenue. The existence of the JointTax Board, whose membership includes the 36 tax authorities of the States, is intended to introduce uniformity. The uniformity is nevertheless cosmetic.
Fiscal federalism its effect out tax collection.
Our quest for fiscal federalism makes uniformity unattractive. For instance, Lagos State may want to collect a particular tax type for which Zamfara State may not be interested in. To solve this problem, a legislation known as Taxes and Levies (Approved list for collection) Act (Amendment) Order, 2015 has provided states with 25 taxes and levies from where they can select the types and number of taxes and levies they can charge within their states.
