Federal Inland Revenue Service and Taxation Reforms in Democratic Nigeria

Justincox

Description

In line with the federal structure of the Nigerian State, tax administration in the country is multi-tiered. The Federal Inland Revenue Service is responsible for assessing, collecting and accounting for tax and other revenues accruing to the Federal Government. The States Boards of Internal Revenue and the Local Government Revenue Committees perform similar functions at the State and Local Government levels respectively. This book attempts to chronicle the changes that have been taking place within the Federal Inland Revenue Service since 2004 and how these activities have contributed to the reforms in the Nigerian tax system. In terms of value, the book facilitates an understanding of the role played by the Service; its staff and stakeholders in repositioning the Nigerian tax system. It is an essential reference material for everyone that seeks an understanding of the processes that underscore the ongoing changes in the Nigerian tax system.

Informations

• Publié par: Safari Books Ltd
• Date de parution: 19 décembre 2012
• Nombre de lectures: 0
• EAN13: 9789788431480
• Langue: English
• Poids de l'ouvrage: 4 Mo

Extrait

Federal Inland Revenue Service and Taxation Reforms in Democratic Nigeria

Edited by Ifueko Omoigui Okauru

Produced by Safari Books Ltd Ile Ori Detu 1 Shell Close Onireke Ibadan Email: [e-mail]

©  FIRS

Federal Inland N i g e r i a

Revenue

Service

Edited by Ifueko Omoigui Okauru

Published 2012

and

Taxation

Reforms

in

Democratic

All rights reserved. This book is copyright and so no part of it may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, electrostatic, magnetic tape, photocopying, recording or otherwise, without the prior written permission of the author.

ISBN: 978-978-48776-5-7

Safari Books Ltd Ibadan

Introduction Acknowledgments Executive Summary

TABLE OF CONTENTS

Chapter One: Pre- 2004 Reform Activities

The Macro environment in context

The Nigerian Economic Reform agenda

Chapter Two: Setting the Tone

Study and Working Groups

The Tax Reform Agenda

Chapter Three: Organisational Re-Structuring

FIRS Organisational Structure Prior to 2004

Challenges Posed by the Pre-2004 Structure

Changes in the Organisational Structure since 2004

The Evolution of Integrated Tax Offices and Large Tax Offices

The Evolution of Other Departments

Chapter Four: Tax Policy

The National Tax Policy

Tax Policy Department in Federal Inland Revenue Service

Supporting Tax Policy Unit in the Ministry of Finance

Chapter Five: Tax Legislation Background Legal ReformsAchieved

Outstanding Bills

v

ix xi xiii

1 1 3 9 9 18 25 25 27 29 30 37 73 73

94 95 101 101 104 128

Chapter Six

: Judicial Processes

Engaging the Judiciary

Tax Appeal Tribunal

Chapter Seven: Modernisation

Modernisation Overview

Re-engineering Projects

Automation of Key Processes

Other Modernisation Projects

Chapter Eight: Compliance and Enforcement

Compliance Strategy

Compliance and Enforcement Group (CEG) Activities

Investigation and EnforcementActivities

Chapter Nine: Taxpayer Services and Delivery Standards

Service Compact with Nigerians (SERVICOM): The FIRS Experience

Taxpayer Service Policy, Process and Programmes Department

Chapter Ten: Entrenching A Strong Ethical Code

Ethics, Values and Anti-corruption

Putting a Code of Conduct in Place

Chapter Eleven: Capacity Building

Concept of Capacity Building in FIRS

Structure Staffing Specialisation

Areas of skills impacted to date

Chapter Twelve: Asset Management

Chapter Thirteen: Securityand Safety Management Policies

vi

135 135 137 151 151

158 163 178 193 193 196 200

207 207 215 221 221 226 237 237 237

240 246 246 251 271 271

Organisational Structure

Chapter Fourteen: Cooperation and Collaboration

Chapter Fifteen: International Involvement CATA VADA ATAF WATAF

Chapter Sixteen: Tax Treaty Network and Transfer Pricing Background Transfer Pricing

Chapter Seventeen: Strategic Performance Management Planning Meetings and Retreats

Chapter Eighteen: Financial Performance

Revenue Collection: Performance and Trend Analysis Funding Financial Performance and Accountability

Chapter Nineteen: Board-Management Relations

Governance Reform

Policies, Guidelines and Processes of the Service

Chapter Twenty: Internal Affairs

InternalAffairs Restructuring

Internal Affairs Audit Charter

Internal Affairs Policies and Procedures

Chapter Twenty-one: Corporate Social Responsibilities

Corporate Social Responsibility

Chapter Twenty- two: Awards and Recognitions

vii

277 287 309 310 316 319 322 325 325 332 343 343 353 363 363 368 375 385 386 396 421

421 423 423 435 435 443

Background Reward and Recognition in FIRS

Taxpayer and FIRS Agents Award

Chapter Twenty-three: Unions, Societies and Clubs in FIRS

Unions in FIRS

FIRS Multi-Purpose Cooperative Society Ltd

FIRS Sports Club

Chapter Twenty-Four: Joint Tax Board

Chapter Twenty-five: Communicating the Change

Corporate Communications

FIRS Rebranding Tax Matters Chapter Twenty-six: Building Pipelines for Sustainable Engagement

Chapter Twenty-seven: Documenting for Posterity

FIRS Tax Museum

Tax History Project FIRS Reform Documentation Appendices Index

viii

443 443 448 457 457 463 466 477 497 498

509 518 527 535 535 541 542 547 559

Introduction

The history of modern taxation in Nigeria is traceable to the reforms initiated in the first decade th of the 20 Century in Northern Nigeria by the High Commissioner of the then Northern Protectorate, Sir Fredrick Lugard. Lugard issued the Stamp Duties Proclamation in 1903 and followed it with the Native Revenue Proclamation in 1906. The Native Revenue Proclamation 1906 systematized all pre-colonial taxes that existed in Northern Nigeria by defining taxable rates, procedures for assessment and collection as well as penalties for default. This made away

with the arbitrariness that was the case in the pre-colonial era and introduced the four certainties

essential in modern tax practice: what to pay, when to pay, where and who to pay to.

Following the amalgamation of the Northern and Southern Protectorates in 1914, the Colonial

Government re-issued the Native Revenue Proclamation as the Native Revenue Ordinance 1917,

but the application was still restricted to the northern territories. The application of the ordinance

was extended to the western and eastern territories in 1918 and 1927 respectively to enable the

levying of income tax in those regions.

Another major reform took place in 1943 when the Nigerian Inland Revenue Department, the precursor to the Federal Inland Revenue Service, was carved out of the Inland Revenue Department of British West Africa. The Inland Revenue Department was renamed the Federal Board of Inland Revenue under the Income Tax Ordinance No. 39 of 1958. This change was re- echoed again in 1961 when the Companies and Income Tax Act No. 22 of 1961 established the Federal Board of Inland Revenue, FBIR. CITA 1961 also established the Body of Appeal Commissioners as the first point of call in the resolution of disputes between taxpayers and the Board concerning assessment and payment of tax. Also, the Income Tax Management Act 1961 created the Joint Tax Board and charged it, primarily, to ensure uniformity of standards and application of personal income tax in Nigeria.

In 1993, some major changes took place with the passage of the Finance (Miscellaneous Taxation

Provisions) Act No 3 of 1993 and decree 104 of 1993. While decree 3 reviewed the composition

of the FBIR and also established the Federal Inland Revenue Service (FIRS) as the operational

arm of the FBIR, decree 104, among other things, reviewed the functions of the Joint Tax Board.

The history of tax administration changed dramatically again in 2007 with the granting of financial

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