TAX PRO MAX : AVOIDABLE CONFUSION IN TAX ADMINISTRATION IN NIGERIA: BY DR. GBENGA ADEOYE. - THE BUSINESS PACKAGE

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Tuesday, June 22, 2021

TAX PRO MAX : AVOIDABLE CONFUSION IN TAX ADMINISTRATION IN NIGERIA: BY DR. GBENGA ADEOYE.



From June 2021, Federal Inland Revenue  introduced full migration to online filing and payment through TaxProMax.

The whole country Tax arena is currently battling with confusion as the new system is not friendly at all .

One wonder how FIRS is so comfortable not to generate adequate tax revenue in June as a result of the confusion created by TaxProMax.

It is worrisome that the process of payment have become so bad that one can confidently say that FIRS will not generate 50% of what is expected in June, 2021.

The way out : 

1. Apply the Canon of Taxation of convenience. Tax should be so simple and easy to pay.

2. Return to payment via TIN( Tax Identification Number ) through Remita or banks.

3. The retinue of forms to be filled online will discourage filing and should be modified.

4. Allow Tax Payer to pay taxes at the Bank with ease without having to fill a form before paying.

5. Every change in system should follow International Best Practice which is to allow the old and the new to run at the same time till the new one is very effective.

6. How can you make Tax payment so  difficult at a time that the country is facing crisis economically and government need money at all levels.

7.When the process of tax filing and payment is cumbersome, you will be discouraging compliance. 

8. Truth must be told, the portal is slow and you can easily log in at night or early in the morning around 5am if your can deprive yourself of sleep .

9.TIN is unique enough to be the basis of Tax payment at any time.

10. Tertiary Education Tax is not showing on the portal.Witholding Tax is difficult to pay.

11.FIRS Managrment should quickly return to the old easy payment method without any delay . This require honest and objective appraisal of how much have been generated in June so far.

12.There should be no penalty for late filing of VAT from May till September  because there is confusion in the arena. 

13.There should be an extension of filing of 2020 Financial Statements till 30th Sept,  2021.

14. Finally, how can you just migrate suddenly without considering what is good in the old method. ?

Dr.Gbenga Adeoye  holds a Bachelor's Degree in Law.( LLB)

He holds an MSc in Banking & Finance and a  PhD in Management Accounting.

He is a Fellow of The Institute of Chartered Accountants of Nigeria ( FCA) , a Fellow of The Chartered Institute of Taxation of Nigeria ( FCTI) &  an Arbitrator of UK and Nigeria.

He is the Principal Partner of Gbenga Adeoye & Co.( Chartered Accountants) .

He is a member of Tax & Fiscal Policy team of the  Nigeria Economic Summit Group .

He was a  member of ICAN Tax Faculty Board .

He is an advocate of Tax Justice, Good Governance and Socio Economic Development of Africa in general and Nigeria in particular.

He believes that Transformation and Development is hinged on the  Quality of Leadership at any level, be it  private or public sector organisation.

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