Tax Evasion And National Development

President Goodluck Jonathan revealed
recently that 65 percent of registered
tax payers were defaulting and that the administration had come up with seven initiatives to improve the current level of non-oil revenue in the country.
He said that some of the individuals and corporate organizations that default have not filed their returns for two years, while 35 percent of firms operating under the pioneer status incentives abuse their tax exemption status.
The President who was represented by the Minister of Finance and Coordinating Minister of the Economy, Mrs. Ngozi Okonjo-Iweala at the 44th annual conference of Accountants urged the Institute of Chartered Accountants (ICAN) to support the Federal Government in its drive to plug loopholes in the system and get more money for development.
Even when it may be difficult to convince anyone of the judicious use of revenues accruing to Nigeria, it is unthinkable that anybody, especially business entities would fail to pay their taxes as and when due. It is a sin and a major harm to the practice of democracy anywhere in the world.
As a matter of fact, this trend cannot be allowed to continue when the major source of the nation’s economy-petroleum – is becoming less and less sustainable. Even compelling is the need to build infrastructure and capacities for the country as it prepares for a major global economic transition.
Fortunately, the Federal Government has engaged the services of a consultant to bring about the needed change, the culture of letting people go with their crime in this country cannot support this campaign for full tax return or the elimination of corruption at any level.
While the government is talking about the failure of more than half of registered firms to return their taxes, there are even more organizations that are neither registered nor return their taxes. To these persons, government must not be shy to prosecute or impose sanctions according to the laws of the land.
Even when it cannot be supported, some tax defaulters in Nigeria no longer suffer any conscience because even the few that are collected are hardly accounted for. In addition to the weak accountability environment, some staff of the revenue branch have safely colluded with tax payers to do so much harm.
Yet, nearly every Nigerian wonders why the government has not been able to provide development in a number of ways. Many Nigerians have also failed to acquire the sense of ownership of the country because they have failed to consciously contribute to the development of the country even through taxation.
We also think that the leaders of the day must do everything, to ensure attitudinal change among the citizenry because it is their responsibility to make every Nigerian imbibe the virtue of paying tax. On the one hand, it will encourage hard work and lubricate the economy in ways that would stimulate job creation, on the other, it will provide for the development of the country.
While we expect a hundred percent tax return on taxes in Nigeria, we think that the government needs to do more, even now to address the basic needs of the people. There is no reason why the supply of potable water, electricity, housing, roads and security should still be a problem in Nigeria. This cannot encourage anyone to pay tax.
After more than 50 years, much of Nigeria is still in rural setting, while access to people in the communities, even oil and gas bearing communities would remain a nightmare. As the individual largely provides everything for himself, the compulsion to pay to government fails to matter.
But there is a turning point for everything and we believe that this is the time for both the people and government to make good their responsibility to the obligation of taxation. For government to get enough revenue it must make the whole country an economic field and that can start now.