JOINT TAX BOARD
1ST National Tax Retreat
SYNDICATE SESSION REPORT

GROUP ELEVEN

Topic: The Role of Law Enforcement in Tax Reform and Administration

IDENTIFIED PROBLEMS

1. The provisions of the tax laws with regards to enforcement are largely adequate but sanctions and penalties as provided are not just inadequate but obsolete.
2. Inadequate database for planning, evaluation, control, monitoring and enforcement.
3. Inadequate capacity in terms of manpower, IT and logistics.
4. Nigerians’ penchant for disobeying laws especially on taxation and general apathy towards taxation.
5. Absence of political will to ensure compliance
6. Revenue Authorities\Boards as presently constituted are not properly equipped to enforce taxation laws.
7. Inadequate training for enforcement officials
8. Legal process and procedure are cumbersome and requires reforms
9. Overwhelming culture of corruption in society
10. Poor remuneration for tax officials and funding for Revenue boards.

RECOMMENDATIONS:

• The Tax laws should be amended to align sanctions, penalties and fines with present day realities.Penalties and sanctions must be effective deterrence.
• Revenue Boards must institutionalize the ability to enforce. A Tax Police as in the US and Russia will be most effective in the enforcement of the tax laws.
• Autonomy for the Revenue Boards for effective and purpose driven recruitment and compensation policies, funding and institution building.
• The need for the Revenue Boards to interface effectively with all law enforcement organs in the country: ie the Police, Customs Department, EFCC, ICPC, FRSC, NIA, SSS, NIS etc.
• The need for the scope of investigation and prosecution of every infringement of the laws of Nigeria to include a constant “check” – the tax status of the law breaker.
• The establishment of Intelligence and monitoring units in the Revenue boards to enhance enforcement and prosecution.
• Tax statute infringement should now be a criminal offence as against the present categorization of this crime a civil offence.
• The need for the Revenue Boards to interface effectively with the Nigeria Financial Intelligence Unit (NFIU) as established under the Money Laundering Act 2004, to monitor all suspicious transactions and transactions beyond a certain threshold.
• Government must have political will to enforce the laws on taxation. There must be no sacred cows. Nobody is above the law.
• Need for aggressive public education, orientation and enlightenment. A clear statement of the tax payers rights and obligations.
• Appropriate sanctions and penalties to deter all forms of corruption.
  Harmonization of current reform initiative with the Judicial arm of government so that the Judiciary does not constitute a negative bottleneck.
• Effective training policy that will constantly update the knowledge base of the enforcement units.
• Enhancement of IT skill and capacity of the Revenue Boards to ensure a more comprehensive database of tax payers.