CIIN President tasks Nigerians on tax payment
Nigerians of all walks of life have been urged to pay their taxes as at when due as their contributions to the country’s economic growth and sociopolitical development.
The President/Chairman, Governing Council, Chartered Insurance Institute of Nigeria (CIIN), Mrs. Funmi Babington-Ashaye made the call recently in Lagos during a seminar organized by the Institute to sensitise insurers on the need to embrace Federal Government’s Voluntary Asset Income Declaration Scheme (VAIDS).
She emphasized payment of tax as a legal requirement that all persons must adhered to strictly, adding that when this is done by all and sundry, government will have enough revenue to grow the economy.
“..The payment of tax is a legal requirement and therefore, it is mandatory for all persons to pay taxes on their legitimate income. The point must be made that there is no direct relationship between the amount of taxes a citizen pays and the benefits he/she receives or enjoys. Thus, payment of taxes is a civic obligation. It is the citizens’ contributions to the running of government and not an exchange process. With higher tax revenues, the government will be better placed to meet the needs of Nigeria’s growing population. If we pay tax, we can then hold the government accountable,” Ashaye said.
CIIN boss who commended the Federal Inland Revenue Service and KPMG Professional Services for partnering Institute to drive VAIDS campaign called on Nigerians to leverage the opportunity to make it up to government by paying their tax obligations.
She frowned seriously at tax evasion describing it as a criminal offence even as she revealed that many human and legal persons own assets from which they earn taxable income but deliberately refused to disclose such additional sources of income for purposes of tax.
This, she said, amounts to tax evasion and a criminal offence. There is need to encourage such persons to voluntarily disclose and pay appropriate taxes as a demonstration of their support to government.
According to her, “some persons just refused to pay tax because they argue that they are not getting any direct benefits from the previous taxes they pay. As persuasive as their thoughts may appear, they are actually committing serious illegality that is sanctionable.”
She equally warned that the penalties for not taking advantage of this window for those that will be caught will be very severe even as she advocated that the word should be spread in order to encourage more tax compliance.
CIIN boss said what the government has done with the VAID Scheme, was to provide a window for all tax defaulters or evaders to voluntarily declare their hidden or previously undeclared assets and income over which they have not paid taxes so that they can be appropriately taxed.
Pointing out that in taking this decision, the government wants to forgive their previous sins of not paying taxes as well as waive the associated sanctions, describing it as a tax amnesty.
The window was opened on July 1, 2017 for 9 months and closed on March 31, 2018.
