Tax evasion, cause of Nigeria’s woes-Olokooba
A Professor of Taxation and Head, Department of Business Law at the University of Ilorin, Saka Muhammed Olokooba, has blamed the deliberate refusal of most Nigerians, particularly members of the elite class, to pay taxes for the several woes befalling the country as he suggested that severe punishment should be visited on those who perpetuate, aid and abet tax crimes.
Prof. Olokooba made this assertion last Thursday (December 14,2023) while delivering the 249th Inaugural Lecture of the University of Ilorin titled “Withhold Ceasar’s Rights and then Cry The Beloved Country” at the institution’s Main Auditorium.
The don explained that most of the challenges of development currently facing the country wouldn’t have happened if all those who are supposed to pay taxes do so as and when due .
Prof. Olokooba described tax as an essential duty, which every qualified citizen must offer his nation before he can lay claim to any right or privilege.
He added that many of those who pay taxes do so out of compulsion and not necessarily as a result of patriotism, saying that most Nigerians always developed apathy to tax payment.
Prof. Olokooba, who quoted relevant portions of the Holy Quran and Bible to support his assertion that tax payment is not only a patriotic function but also a divine and cultural duty, insisted that for Nigeria to witness the much envisaged transformation, its citizens must pay their taxes regularly.
To discourage tax evasion among the nation’s citizens, Prof. Olokooba called for proper orientation and reorientation, particularly among the elites, which would elicit positive attitudinal changes in them towards taxation. He explained that the greatest incidence of tax evasion is recorded among the elite who are incidentally the repositories of the nation’s wealth.
The Inaugural Lecturer also suggested that tax evasion should henceforth attract prompt and severe punishment to serve as deterrent to others. He explained that mere imposition of monetary fines on tax defaulters has not been effective enough and that a punishment more severe should be introduced to effectively stem the tide.
He equally advocated the administration of severe punishment on tax officers that are caught engaging in any act of corruption, particularly in wrongful assessment or under-assessment to give undue advantage to taxpayers. He recommended that such officers should be given the treatment of someone that committed a treasonable offence.
Prof. Olokooba equally called for constant review of the Nigerian tax laws as well as creation of specialised courts to ensure that the laws relating to tax and taxation are updated, noting that the introduction of specialised court would help to develop tax Jurisprudence.
The don also suggested strong collaborative efforts among government agencies in fighting tax criminality. He added that it was high time that tax authorities collaborated with other government agencies such as the Corporate Affairs Commission, Land Registry and the Economic and Financial Crimes Commission as well as the Independent Corrupt and Other Related Offences Commission (ICPC).
Prof. Olokooba also appealed for a more scientific data gathering on tax payers, which would enable proper monitoring. He explained that intelligence information gathering and exchange of such on potential tax evaders would help in battling tax fraud.
He explained that having apt information regarding the financial status and standing and sources of revenue of both individuals and corporate organisations will adequately aid the effectiveness of tax policy administration as well as effective capturing of more tax payers within the tax net, which in the long run, serves as an indirect check on tax evasion in Nigeria.
Prof. Olokooba also suggested the engagement and appointment of highly experienced and qualified personnel that would man tax administration. He explained that this is important because the technicality involved in tax administration is enormous. He, therefore, suggested that when recruiting, those who possess the right knowledge, skills and experience should be given priority.
The Inaugural Lecturer also suggested the automation of tax administration. He explained that electronic taxation will make the function of tax policy administrators easier, faster and more effective. He said that such innovation would certainly lead to improved revenue generation.
Prof. Olokooba also expressed his conviction in the fact that constant taxpayers education and enlightenment would also lead to the encouragement and mobilisation of taxpayers to pay their taxes regularly as it would also encourage tax compliance.
He also advised the government to be transparent, reasonable and accountable in the use of tax revenue generated. He added that once responsible and patriotic citizens are convinced that government is judicious in the deployment of the resources generated, tax compliance would be encouraged and sustained.
Prof. Olokooba also canvassed for the elimination of multiple taxes. He explained that payment of taxes on one or similar tax items to different authorities discourages tax compliance.
Because Nigeria is a nation with a significant Muslim population, Prof. Olokooba suggested that the advantage of the opportunity offered by the global acceptability of Islamic finance must be taken through a model law and clear regulation that would take care of the tax aspect of Islamic financial products in the country.
The Inaugural Lecture, was attended by many dignitaries from far and near.