Tax evaders rob Nigeria $15bn annually – Fowler – TheNigerialawyer

…Information exchange regime starts 2020

Executive Chairman, Federal Inland Revenue Service (FIRS), Mr.
Tunde Fowler, on Wednesday made a startling revelation that
recalcitrant tax evaders rob Nigeria $15 billion revenue
annually.

This was as he revealed that the tax information exchange regime
commences in 2020 as part of global efforts to combat offshore tax
evasion.

At a seminar organised by Africa Tax Administration Forum
(WATAF) in Abuja, which attracted global tax experts, Fowler said
that Nigeria would implement the first Automatic Exchange of
Information standard by 2020.

He added that the regime was part of the country’s commitment to
improving transparency in tax administration, increase tax revenue
collection, enhance effectiveness and efficiency in service
delivery.

The FIRS boss added that there was important linkage between tax
compliance, domestic tax investigation, tax audit, information
gathering framework and the international infrastructure for
exchange of information amongst authorities and nations.

“Nigeria had demonstrated her commitment to improve transparency
around tax matters, when she signed a declaration and joined the
Multilateral Competent Authority Agreement (MCAA) on Automatic
Exchange of Financial Account Information (AEOI) on 17th August
2017.

“Furthermore, to facilitate the process of implementing the
Automatic Exchange of Financial Account Information under the
Common Reporting Standard (CRS), Nigeria published the AEOI
regulations in the Official Gazette of the Federation.

“Finalsed and issued CRS guidelines, constructed and finished a
dedicated building for the operation of the AEOI and put in place
the necessary Information and Communication Technology (ICT)
infrastructure to operationalise the AEOI processes.

“Nigeria has done all these to enable us conduct the first
exchange of information under the automatic exchange of information
regime by September 2020.

“I encourage those countries in the ECOWAS sub-region who have
not committed to implement the AEOI standards to take necessary
steps to do so, especially as the automatic exchange of information
portend huge benefits for domestic resource mobilisation,’’ Fowler
explained.

He noted that increase in mobility of income and assets had
created a challenge for tax administration and that governments
across the world were joining efforts to address such
challenges.

Fowler said the challenges offered a global response to the
issues of international tax avoidance, tax evasion, illicit
financial flows, money laundering and other harmful tax practices
based cooperation and use of advanced technologies to tackle the
issues.

He added “It is my hope that this seminar will broaden your
knowledge and develop your skills on how to use AEOI tools to
combat tax evasion and improve domestic revenue mobilization in
your countries.

Also, it is expected that the training will further enhance the
effectiveness of participants who are at advance stage of AEOI
implementation in their countries to increase the number and
quality of outgoing requests to their treaty partners while those
of you whose countries have not committed to the implementation of
the international standard on AEOI will take steps to do so in view
of the enormous benefit to be derived from it.’’

Earlier, Mr. Babatunde Oladapo, the Executive Secretary, West
Africa Tax Administration Forum (WATAF), said that the body was
committed to contributing to the expansion of the global tax base
through exchange of information.

Oladapo explained that efforts were on the closed gap among
nations to ensure effective implementation of exchange of
information and that tax administration could only be done
successful based on the availability of information.

He commended the OECD Global Forum for leading the drive for the
automatic exchange of information that would ensure high network of
individuals and multinationals were made to pay their taxes.

Also, the representative of the OECD Global Forum, Ervice
Tchonaya, said that forum core mandate was to ensure effective
implementation of the international standard for the implementation
of the automatic exchange of information among countries.

He said that forum instrument of intervention included
Per-Review Process, In-Depth Monitory System and Technical
Assistance in the area of capacity building in form of trainings
and seminars among others.

The seminar organised by WATAF in partnership with the OECD
Global Forum had the theme: “Exechange of Information as a Tool to
Combat Offshore Tax Evasion,” aimed at sharing experiences and
build capacity across borders.

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2020 Budget: NASS tasks MDAs to provide measurable
targets

The National Assembly has tasked the Federal Ministries,
Departments and Agencies (MDAs) to provide achievable targets that
are measurable with timelines for the implementation of the 2020
Budget.

President of the Senate and Chairman of the National Assembly,
Ahmad Lawan, said the ninth Assembly is not only concerned about
the timely passage of the budget but also deeply concerned about
its implementation.

Lawan, flanked by the Speaker of the House of Representatives,
Rt. Hon. Femi Gbajabiamila and principal officers of both chambers,
spoke at the National Budget Hearing on the 2020 Federal Government
Budget which began on Wednesday at the National Assembly.

The Senate President said: “We have mandated our Committees to
engage with the MDAs. We want the MDAs to give us roadmaps on how
they intend to achieve their targets.

“If you are taken 10 million Nigerians out of poverty in 2020,
in ten years it will be one hundred million. We want to see the
plans by the relevant or responsible Ministries, Departments and
Agencies of government on how the 2020 budget will be able to take
10 million Nigerians out of poverty.

“We want these to be measurable targets. We are not going to be
asking for stories. We are going to be asking for facts.

“So, we are going to task the MDAs that in this year budget we
will not wait until 2021, give us targets that are measurable which
we can evaluate after every quarter.”

The Senate President also cautioned on the continued reliance on
borrowing to fund the infrastructure needs of the country but
instead suggested a Public Private Partnership (PPP) option.

“If we have to borrow, we should borrow. Where we can avoid
borrowing because there is another opportunity, we should take that
opportunity that has a lesser burden,” Lawan said.

Lawan is also in agreement with the suggestion for the
resuscitation of the long term national planning programme.

“I agree that the long term national economic programme is
useful. We had it before, it worked for us better. We stopped it
and we have seen the consequences.

“So now that we have a minister that thinks that we should go
back to that process and we have a National Assembly that is
prepared to ensure that this country does better. We should hit the
ground running.

“I am not aware of any request for legislation but if it is the
desire or necessity that we legislate, this National Assembly will
work with the government to ensure that we legislate on the
national economic development plans,” Lawan said.

Signed:
Ola Awoniyi
Special Adviser (Media)
to President of the Senate