The Chairman of the Federal Inland Revenue Services, FIRS, Mr Babatunde Fowler, has blamed ignorance of taxation rules for the incessant controversies between taxpayers and government.

Mr Fowler, made this known at the KPMG Tax Breakfast Seminar in Lagos, themed, ‘Tax Controversy and Dispute Resolution’. He counselled taxpayers to consult experts in tax issues to avoid over-payment, noting, however, that FIRS does tax refund when necessary. He stated: “The cause of incessant tax controversies between the government and taxpayers are majorly as a result of ignorance of tax administration on the side of taxpayers. Corporate bodies need to take advantage of tax education which FIRS is embarking on across the country using different communications media.

“Taxpayers need to query the source and any observed errors or omissions in tax letters/statements from tax authority. No one has the right to bully any taxpayers in any circumstance.
“We have our Joint Tax Board, JTB, across states whose rectification with any organization is binding by other JTB across the federation. So to avoid multiplicity of tax charges, you must know the law permitting such tax; you are even free to decline an invitation for Joint Tax Audit. Still, it is better you even go to Tax Appeal Tribunal (TAT) where necessary.”

In his remark, Mr Wole Abayomi, KPMG Partner and Head, Tax, Regulatory and People Service, said: “The constantly changing economic landscape requires governments at all levels to develop frameworks that will provide a competitive tax landscape for business, effectively accelerate tax revenues, proactively curb tax evasion and create opportunities for the country’s teeming population.

“A situation where the last time Companies Income Tax Act (CITA) and Value Added Tax (VAT) Act were reviewed was 12 years ago leaves much to be desired, thus, there is an urgent need for government to reform our outdated tax laws to reflect current economic realities. “An efficient way of doing this is to return to the practice of enacting a Finance Act soon after the passage of the annual federal budget through which our tax laws can be constantly reviewed in accordance with global best practices.”

SOURCE: https://www.trendingaccounting.com/2019/05/ignorance-is-major-cause-of-tax.html

Very true though but corruption is the capital reason because tax payers cannot see what the taxes are being used for. Na the politicians dey embezzle am las las

In need of website, blog or software to give your business, passion and ideas a quantum leap? Contact me today through signature to get the best and the affordable.

Bizmagnet:
Very true though but corruption is the capital reason because tax payers cannot see what the taxes are used for. Na the politicians dey embezzle am las las

In need of website, blog or software to give your business, passion and ideas a quantum leap? Contact me today through signature to get the best and the affordable.

Good reply