MY OPINION ON THE PROPOSED TAXATION OF CHURCHES BY THE FEDERAL GOVERNMENT.

In Nigeria, people's opinion are more driven by sentiment rather than objectivity particularly on issue of religion dimension and I can say that the Muslim and Christian faithfuls are often guilty of. I for one have long hold the believe that in this country of ours (Nigeria), people have used religion as an instrument of deception than good. This is why I tell whosoever cares to listen that I am neither a christian or muslim, I am a Chrislam by religion. And before you ask me say, 'which one be Chrislam again'? I have a right to serve the Almighty God in whatever name, way and manner I chose to and only him (God Almighty) knows who is truly serving him. That settled.

Long before now, there are been arguments back and forth on the activities of Churches particularly in the area of them paying taxes to the government. Once again, this issue made headline in most of the National Daily Newspapers last week. And trust the popular and ever vocal presiding bishop of Living Faith Church Worldwide David Oyedepo. The Pastor in his usual style, told his large congregation last Sunday of his total disapproval of the application of the Company and Allied Matters Acts (CAMA) on churches by the Federal Government. He buttressed his arguments on the fact that the “church is God’s heritage on earth” and that it works “on the pattern delivered by God not the pattern of man.' And before you could say Jack Robbinson, his utterances got the attention of the social media aide of President Muhammed Buhari, Lauretta Onochie. The media aide lambasted Oyedepo asking him to go and 'manufacture his own country and live by his own laws.' She further stated that, as long as he (Oyedepo) lives and operates within the entity called Nigeria, he (Oyedepo) will live by Nigerian rules and laws. He will do as he's told by the lawFace with rolling eyes. Enough of lawlessness. She concluded by revealing that 'OYEDEPO'S CHURCH IS REGULATED IN THE UK BY THE GOVT'S CHARITY COMMISSION. But he (Oyedepo) promotes lawlessness by bullying d Nigerian govt. She concluded by sharing the below information about Winners Chapel International to buttressed her point that Winner Chapel do pay tax in UK so why not do the same in his home country, Nigeria?
World Mission Agency- Winners Chapel International
Income -£10.2M
Spending -£7.7M
Charity no.- 1134421
Company no. - 06994834

Foremost, I wish to emphasize one thing. Bishop Oyedepo may be the very vocal type particularly on issues that has to do with Churches and Government. But, what I know for sure is that whenever the bishop talks, I have the strong believe that he's speaking for other (Pentencostal) Churches. In fact, I see Oyedepo as the vuvuzela of the Pentecostal Fellowship of Nigeria (PFN). So whenever I see him being lambasted for sharing his view on national issues, I really do pity him. Oyedepo is indeed a very strong man. religious sentiment apart.

On the issue at hand, both Government and Oyedepo are very correct in their opinion. A country will always have issue of this nature when there is FISCAL INBALANCE. In a sane country, every entity (government, business, non-government organisation, religious organisations, clubs, societies etc) are well structurally defines and captured under the relevant revenue net of the country. There should be no ambiguity whatsoever in defining the nature of every entity, nature of their registration, income/revenue/profit definition, identification and taxation etc. When this is perfected, it becomes easy to administered every entities in a country.

In other not to bore my reader with much to read, I wish to recommend as below:

1, The Christian Association of Nigeria (CAN) should be primarily responsible for the registration of all Churches in Nigeria. Every church, Pentecostal or not, should be under the strict supervision of CAN which include but not limited to the filing of their Financial Statement as it may be appropriately determined. EVERY PRIMARY INCOME OF THE CHURCH SHOULD BE TAX EXEMPTED. In other words, every income realized by a church in the primary course of its church activities should NOT be tax by the government. But, where a church has some members (citizen) in its 'employment' and such a member earns remuneration of any form (salary, bonus, allowance etc) such an income should be appropriately taxed in line with the Personal Income Tax (Amendment) Act 2011 - PITA. In this case, it is the Church member's income that is being tax and not the Church as an entity.


2. Where a Church decides to invest its money in EXTRA ORDINARY ACTIVITIES like establishing an educational institution, Banking, Insurance, Pure water, Baking, Guest House etc such an entity should be registered with the Corporate Affair Commission and regulated under the Company and Allied Matters (Amendment) Act 2018. As such, any money realized by such a church In form of income, revenue, profit should be considered as SECONDARY INCOME and appropriately taxed under the Company Income Tax (Amendment) ACT 2020. Note also that every individual who is under the employment of such an entity shall have his/her earned income (salaries, bonus, allowances etc) tax appropriately under PITA 2011.
The above template should also be used for other religious faith in the country.

It is never too late to review some of the existing laws (political and/or socio-economic) in the country for further strengthening. But, truth be told, this is what happens when the church mix religion with politics..

God bless Nigeria.

The CAMA issue is beyond this conversation. The concerns they have are centered around giving arbitrary powers to the CAC without recourse to the Court. If you think EFCC and DSS are bad, wait until you see how CAC can be weaponized against contrary voices.

This is an appreciably balanced write up. I loved it!