LCCI Seeks Disengagement Of Tax Consultants

The Lagos Chamber of Commerce and Industry has urged government at all levels to stop the use of tax consultants.

The body said the device had been adding to the liabilities of tax payers since tax consultants were paid on commission basis.

The president, LCCI, Chief Solomon Onafowokan, stated this during a tax awareness seminar for business, organised by the Federal Inland Revenue Service, in conjunction with Toki Mabogunje and Co in Lagos on Wednesday.

Onafowokan said, “There should be more incentives for investors, especially in the growth sectors of the economy, such as manufacturing, agro-allied industries, and mining.

Tax is a potent tool of incentives to business. “The use of tax consultants by the various governments should be discontinued, because these consultants are paid on commission basis. They are more interested in building up the tax liabilities of the tax payers, sometimes without justification.

He added, “let me reiterate the fact that as business people, we believe that a critical corporate responsibility for us is the discharge of our tax obligations. But this should be done in line with tenets and norms of good tax system. Some of these norms include certainty, clarity, equity, fairness, flexibility and economic efficiency.”

According to Onafowoka, there should be more emphasis on Indirect taxes, as against direct taxes. He added that an informal sector business dominated economy, like Nigeria, should adopt indirect taxes, which he considered an efficient systems of taxation than direct tax.

Speaking in the same vein, the chairperson, FIRS, who was represented by the Acting Co-ordinating Director, Tax Operation Group of the organisation,  Dr Joseph Okpara, said Nigeria operated a tripartite tax administration system; from federal, state to local government level.

She said Taxation Act No 21 of 1998 listed approved list of taxes to be paid to the government coffers at the federal level to include petroleum profit tax, capital gains tax from companies and company’s income tax among others.

She said tax payable to the state governments included personal income tax; stamp duties; capital gains tax; pools, betting and lotteries, gaming and casino taxes, road taxes; business premises registration and development levy among others.