By Prof. Ben Ochuko
Recent reports have unveiled alleged alterations in Nigeria’s New Tax Law.
These proposed changes, if confirmed, could significantly impact enforcement and compliance for taxpayers across the nation.
Key alleged changes include:
1. Expanded Enforcement Powers of the Nigeria Revenue Service (NRS):
– New provisions allegedly grant the NRS the authority to arrest individuals and freeze or garnish taxpayer funds without a court order, which extends enforcement powers beyond previously established regulations.
2. Lower Reporting Thresholds for Taxable Income:
– Reports indicate a controversial reduction in reporting thresholds, dropping from ₦50 million to ₦25 million for individuals and ₦250 million to ₦100 million for corporate entities. This change appears to have occurred without proper legislative authorization.
3. New Fiscal/Appeal Measures Requiring 20% Pre-Appeal Deposit:
– Proposed legislation introduces a requirement for taxpayers to pay 20% of any disputed tax liability upfront before lodging an appeal, potentially affecting the access to the Tax Appeal Tribunal and judicial review processes.
4. Removal of Legislative Oversight Mechanisms:
– Allegations claim the removal of provisions allowing legislative oversight of the NRS, which may reduce accountability and weaken checks and balances detailed in the original tax proposals.
These changes, which reportedly deviate from what was initially approved by the National Assembly, have raised concerns among stakeholders regarding the implications for taxpayers and governance in the nation. As discussions continue, the need for transparency and adherence to legislative protocols remains paramount.
