Bill to establish tax crimes commission scales second reading 

By Christiana Ekpa 

A Bill for an Act to establish the National Inspector-General for Tax Crime Commission; and for Related Matters on Wednesday scaled second reading in the House of Representatives. 

Sponsor of the Bill, Benjamin Kalu, said the Bill seeks to address leakages emanating from non-payment and under-payment of taxes; irregularities in the assessment, reporting and remittances of taxes; prevent and combat tax-related crimes; plug all leakages in the tax administration system; and ensure the protection of tax payers’ rights. 

Kalu said the thrust of the Bill is to establish a system for the independent oversight of revenue collection authorities in Nigeria with the aim of promoting the economy, efficiency and effectiveness in the administration of revenue laws, increasing revenue generation through plugging leakages, expansion of the tax net, ensuring fair and transparent tax system as well as protecting the rights of the tax payers. 

He said, “To effectively combat as well prevent international tax evasion and other transnational organized crimes and abuses of the nation’s financial system, there is need to establish a Tax Crimes Commission which will have adequate capacity to investigate, prevent and combat tax related crimes. This will definitely contribute to our national security through prevention of tax related crimes, prevention of illicit financial flow derived from tax evasion, international tax schemes, cybercrime, etc.  

“Mr. Speaker, Honourable Colleagues, may I draw your attention to a report of Illicit Financial Flows from Africa, compiled by an AU panel led by former South African President Thabo Mbeki, said Africa loses an estimated $60 billion annually through such transfers. The report which was presented in Addis Ababa in 2015 stirred massive concerns in Nigeria which was said to account for over $40.9 billion or 68 percent of the total figure.

“The Tax Crimes Commission will not function as a law court, it will not duplicate the functions of the Tax Appeal Tribunals established in accordance with section 59(1) of the Federal Inland Revenue Service (Establishment) Act, 2007 and it will not have quasi-judicial functions. 

“The Commission shall primarily focus on the oversight of the tax administration system, ensuring that the tax authorities discharge their duties within the laws, protecting, promoting and guaranteeing tax payers’ rights, where necessary ensuring the prosecution of corrupt and fraudulent tax officials, ensuring the complete remittances of all public revenues, ensuring the increase of public revenue not through increased taxation but through friendly and appropriate taxation, among other things.