Federal Inland Revenue Services (FIRS), has blamed the failure of some businesses in the country on multiple taxation. Mr . Koffi Abassi, the Head, Micro and Small Tax Payers Department, said this at the 2013 National Revenue summit organised by Centre for Economic Research and Development.

The summit sought to explore ways to improve revenue generation, allocation and monitoring in the three tiers of government. He said that one of the factors contributing to multiple taxation was the contracting of private agents by some states to collect taxes on commission basis.

Abassi said that though it could be argued that the practice had resulted in improve debt recovery rate for some states, it however had a negative effect on the economy.

He said that one of the negative effects was the allegation of imposition of multiple charges on innocent businesses.

“When you use tax contractors you virtually have less control over their modus operandi. They are interested in using the means they feel expedient to get more commission even when the method applied is wrong. Because of all these, the National Economic Council (NEC) made up of the 36 governors and former heads of states among others recently resolved to abolish the use of tax contractors in the country. This is because of the perceived burden on citizens due to multiplicity of taxes imposed by these tax contractors,” he said. Abassi advised states that want to use tax contractors to only engage them to play advisory roles.

He said that they could be also engaged in capacity building and education of the informal sector on the importance of paying tax. Mr Omar Hambagda, former Chairman, Senate Committee on Ethics, Code of Conduct and Privileges said the legislature’s most important role was its function in budgetary allocations. Hambagda in a paper on the role of the legislature in appropriating funds for government use said that legislative control of the country’s finances was meant to curb the excesses of the executive.

“The legislature has the final say in appropriating funds as they represent the people, therefore, better equipped to direct resources to areas that are most beneficial to them. “The legislature can approve or reject out rightly, any demand for appropriation of funds, or accept it with modification and amendments when it deems it necessary,” he said.

Participants were drawn from State Houses of Assembles, Local Governments Councils, States and Local Government Boards of Internal Revenue Service, among others.

Promhize: Private agents. The tinubus of this world

Omexonomy: Tinubu and his (thieves) tax contractors are being targeted so that their will not be enough fund to campain for 2015.

Chuksphil2go: But most Igbo businesses dont fall now.

some famboyant, lazy and stupid folks across will tell me its bloodmoney.

aguiyi:



what are you guys talking

TINUBU CRIES BLOODY MURDER – NIGERIA BANS TAX CONTRACTORS
Posted by: THEWILL Posted date: October 24, 2013 In: Opinion

No matter how some of us feel about Governor Emeritus Tinubu, the powerhouse of Southwestern Nigerian politics, he may have finally met his match under Okonjo-Iweala. Ban on tax contractors has been discussed and digested only to be forgotten because nobody implemented it. In spite of this writer’s differences with Ngozi, she is dead right on this one. There are different ways to skin a cat; you can also hang it by the balls.

The reason for the implementation of this tax policy is even more economically sound than the political motive. Yeah, it’s like everybody was speeding but only one person get caught and brought before the court. Once the Nigerian Police get a good grip of this tax policy, most of the people violating people’s meager pockets by demanding taxes in every nook and corner of Nigeria must be severely dealt with.

We cannot be against taxes as long as the money is well spent on services the people can be proud of. Most of the Scandinavian countries and Canada pay high taxes and they are rewarded accordingly. Nigerians are taxed for even waiting at the bus stops by different thugs that are actually Political contractors. They introduce illegal levies or tolls and employ thugs who too many times punish citizens to enforce compliance.

It is not that we sympathize with Manufacturing Association of Nigeria (MAN) in the country since they do not pay the lowest workers enough in wages but they complain of multiple taxes and levies country-wide. 79 different taxes they claim is an exaggeration. That taxes prevent expansion and were responsible for the shutdown of businesses and relocation to neighboring countries is the usual cry of businesses everywhere.

What we cannot ague with is that multiple taxations increase the cost of doing business in Nigeria, discourages local trade and investment and also gives a negative perception of the Nigerian business environment. Foreign investors in Nigeria have already taken into account the fat profit they make which is impossible to make anywhere else. This is the reason they tell one another to hold their noses and make a killing in profit.

There is no reason to dispute World Bank report which indicates that for every 100 naira that businesses have to pay in taxes, they pay about 35 naira in compliance costs by taking Federal, State and local taxes into consideration. We also know that most of them if not all, never report their true profit. It is well hidden in gross cost. The oil companies are good example. They will rather declare profit to their governments than to Nigeria.

When it comes to harmonization of taxes and levies across the Federation, it is overdue. There are too many cooks in the kitchen. By the time you count tax collectors, mafias demanding protection money, government officials collecting bribes not to mention traffic and police officers extortion; you wonder how Nigerian small businesses survive.

Lekki Toll booths are just a symptom of greater malaise affecting the whole Country. How individual states and political godfathers get away with it for so long is nauseating, to say the least. Despite protest by the young and old people across Lekki road that was built by Jakande, decorated with flowers by Fashola; they are bent on milking folks dry.

When fish farmers, stewards, maids, drivers, cooks and old pensioners that hardly receive their money in or on time complained, they were told it is not their business because they are not rich enough to drive cars. By that logic, one would think that old pensioners must not drive in and out of their houses because they bought houses around Lekki; or what non-drivers pay does not include toll levied on public transports.

Well, fish farmers, Jakande house owners and pensioners must sell their modest houses and move out of Ajah and Lekki areas to avoid paying tolls. If they ever live longer than the sale price of their properties, they should lie down and die, abi no be so!

Please do not underestimate Tinubu. There are plans in the works to sell some interest at inflated prices dictated by him in exchange for properties, expressways, tax collecting agencies and companies: back to Lagos State or even to others. All he has to do is get a bank to lend Lagos State the money and pay him off. By that transaction, he would have severed his connections, let others hold the bag. Nobody may trace the loss back to him.

This is turning out like the housing bubble that started in U.S causing economic collapse that led to world recession. What they did was inflate houses prices to those that could least afford it and get them bank loans knowing full well that it was backed by mortgage insurance. In this case Lagos State Government will be stuck with all the unsustainable highly inflated expressway and Eko Atlantic projects loans while Tinubu laughs to Bank.

You must remember those students that inflated their school fees with bursars breaking their fathers' back on cocoa farms to enrich bursars (foreign contractors). Whenever we say it costs about a billion naira or one million dollars to build a kilometer of road in Nigeria, people think it is an exaggeration. In reality, newly awarded 127.6 km Lagos-Ibadan expressway reconstruction is expected to cost N1.30 billion per km. Lekki new road running about N3.5 to 4.15 billion naira per km. Yet, nobody probe or query them.

The people of Lagos must bestow an honorary Lagos State Citizen on Ngozi Okonjo-Iweala. There are many people that deserve the honor but it is during her time that the determination comes to implement a ban on Nigerian Tax Contractors. There are other titles that can also be given to her in case she wants something different. Lagosians have to keep it in mind that there is nothing Tinubu has not given away as bribes in Lagos.

This is why it is important to pray for Tinubu so that he must not get sick or die. Lagos State has more to lose if anything happens to him than to gain. As long as he is around, he could be called upon to disgorge all his ill-gotten loot from Lagos State. Nobody in the whole wide world has ever gouged a state unscathed, as much as Tinubu.

Written By Farouk Martins Aresa
- See more at: http://thewillnigeria.com/news/tinubu- cries-bloody-murder-nigeria-bans-tax-contractors /#sthash.vt2g7mC1.dpuf

Chuksphil2go: But most Igbo businesses dont fall now.

gboss4sure: Multiple taxation by people like T.A orji of Abia State and that Emperor of the west.. The worst is that T.A orji is now using the military and bakassi people to collect the taxes from people because his local touts always gets beaten. Any day una hear of showdown between the military and aba traders make una know say na T.A orji taxation cause am o

speedyboi:

they are not talking about roadside boutiques.

*runs out of thread*

Chuksphil2go:

cus ur silly,flamboyant and lazy folks cant hustle it,they aint streetsmart soo swines cant hang.
What happened to Leventis,Kingsway stores,NigerianAirways,NPA,UAC, now Glo is dying slowing.
Ur slowpokes cant run business succesfully,the amount that will go into partying will exceed the amount in stock,wen the time for naming ceremony comes they will auction everytin,empty shop and run to buy the latest necklace and lace after naming ceremony comes hunger and aggression

angelinvestor: I think lack of financial literacy on the part of the entrepreneur is the reason why a business is double taxed. Just get a good corporate lawyer to structure your business well and then seek the advice of a tax strategist. Believe me, you will pay less tax and even cheat on your tax legally. This is one of the secrets of billionaires.

angelinvestor: I think lack of financial literacy on the part of the entrepreneur is the reason why a business is double taxed. Just get a good corporate lawyer to structure your business well and then seek the advice of a tax strategist. Believe me, you will pay less tax and even cheat on your tax legally. This is one of the secrets of billionaires.

googlepikin: dis guy I don't think you stay in Nigeria. Imagine in a country like Nigeria where we need fiber optic broadband, but the reason why we can have fast and cheaper internet is cos states, local govt and agberos want their own share before telcos will be permitted to lay their pipes. Something dey too will benefit from. But they want to collect their own share first before any story. I'm sorry to say dis , somehow I blame Fashola on issues like dis cos I knew when those optic cables started landing in Lagos , Fashola quickly setup an agency to checkmate the progress of rite of way. At a point he started disturbing telcos cos of basestations(mast) the next thing his in microsoft office doing what sef? My broda, that is into contract work with mainone told me a story about how Lagos state govt agberos started cutting already layed cables. Cos they haven't settle dem omonile. now tell me how dis country can progress technologically .annoying thing is dat other state govrns saw Fasholas action as an eye opener for them to collect their own omonile too. The next thing some clowns will start comparing us with US, UK and malaysia lets continue to fool ourselves.

stanbiggi: Yes,its true.I am a practising accountant. Let me give u an instance.
1. FIRS- federal inland revenue
2. LSiRS- lagos state inland revenue
3. Lassa- lagos state signage ....agency,
4. LSFS_ lagos state fire service
5. FFS- feferal fire service
6. Education Tax
6. Lrma_ lekki resident maintennce agency Except you are resident or do business in Lekki
7. Rtl- local govt radio/ tv liencence - You only pay this when you run an entertainment business
8. [s]Fhc_ local govt food handling certificate[/s] - You only pay this if you are in the food business
9.Lgeas_ Local govt environment assesment
10. Lawma_ lagos state waste management
11. Consumption tax _ on the pipe line
Tell me who go pay all these bills and still make profit when staff is crying for salary increase,customer are wiser to get cheaper product so the burden is not pushed to them and you also know there are many more bills to pay. As an accountant_ !usiness no easy for nigeria take it or leave it