Posted by By Clifford Amuzuo on
The Managing Director and Chief Executive, Trust Bank of Africa Limited, Mr. Yinka Adeola has challenged the Chartered Institute of Taxation of Nigeria (CITN) on the need to avail the government its professional expertise with a view to ensuring success of the ongoing tax reform policy in the country.
The Managing Director and Chief Executive, Trust Bank of Africa Limited, Mr. Yinka Adeola has challenged the Chartered Institute of Taxation of Nigeria (CITN) on the need to avail the government its professional expertise with a view to ensuring success of the ongoing tax reform policy in the country. Specifically, the institute has been told to put in place necessary machinery that is capable of raising the contribution of taxation in the nation's overall revenue generation drive as well as in the general economic development agenda of the government.
He made the call while delivering a key note address at the formal opening of a one-day quarterly business luncheon organised by the CITN in Lagos.
Speaking on the subject : "Taxation as an instrument of social engineering", the bank chief executive observed that too much wealth is currently being concentrated in the hands of just a few individuals with its attendant constraints to economic development and pointed out that the challenge of using taxation as a primary instrument of redistribution of income and wealth should be the focus of the on-going tax reform agenda of the government.
Drawing inferences from empirical evidences supporting direct relationships between economic development and taxation as well as the effectiveness of personal income taxes, he cautioned that the on-going social engineering efforts such as the financial services industry's recapitalisation and consolidation, privatisation, port reform, power sector reforms among others which are intended to alter behaviours may fall short of their desired objective of improving the living standards of the majority of Nigerians if the on-going tax reforms fail.
He specifically decried the un- cooperative attitude of professionals in the fields of taxation including lawyers and bankers in tackling the vices of tax evasion among the citizenry pointing out that the task of ensuring the success of the tax reform is a collective responsibility requiring a paradigm shift on the part of professionals.
Said he " Among the many areas that requires change, I want to focus on two that are within the confines of tax professionals, bankers, accountants and lawyers to make significant impact. The first is the high level of tax evasion and avoidance. Through act of omission and commission, we stand accused and a guilty verdict may not be difficult to pass on professionals for their connivance that usually encourage tax evasion".
"We must be counted on the side of honour as our profession demand of us. As advisers in the different forms and guise, we must use our position in our private practice, business and government to influence change for the better.
We must begin to back sanctions against members of our professional associations that actively participate in corrupt activities, adding that professionals as middle income earners will be the greatest beneficiary of the reform agenda if we give it all the needed commitment.