The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has vowed to investigate alleged tax-evasive corporate entities to boost Nigeria’s revenue.
This was disclosed on Friday, October 4, 2024, via the EFCC’s X page.
Olukoyede made this suggestion to the Chartered Institute of Taxation of Nigeria (CITN), stating that both parties need to research the activities of individuals and corporate entities evading tax payments in Nigeria.
Tax Evasion
According to the statement, the EFCC chief, while receiving the management team of the CITN led by its President, Mr. Samuel Agbeluyi, on Wednesday, described defaulting corporations and individuals as threats to the growth and development of the country.
Olukoyede vowed not to relent in “tackling tax evaders, especially individuals and corporate entities that have failed to remit their due taxes” to the federal government.
He assured that the Commission will collaborate with the CITN to identify the offenders.
He emphasized that delving deeper into tax evasion and avoidance will reveal facts that can be used to address defaulters, thereby raising Nigeria’s revenue profile.
He noted that the gap in apprehending tax defaulters has led to a situation where certain individuals earn significant income but pay minimal tax to the government.
“There is a need for us to conduct more research, knowing fully well that if we examine the percentage of people paying tax in Nigeria compared to our GDP, we must do more to enable the government to generate additional revenue.
“If we expose sectors that have not been paying tax despite making substantial profits, it will be enlightening when we carry out our investigations. Some of the findings reveal individuals with enormous incomes who pay very little tax, leaving us to wonder how we sustain this system,” he said.
More Insights
Olukoyede further stated that revenue from taxation is expanding and may have surpassed oil and gas in terms of revenue generation.
“Taxation has become a major source of revenue for the government and for the entire country, perhaps even the largest. I read a report indicating that taxation has overtaken oil and gas. I am also pleased to hear that taxation has become a course of study in tertiary institutions. That is a significant achievement for you and the members of the institute,” he said.
Regarding the strategic partnership with the EFCC, Olukoyede mentioned that the Commission has a dedicated section for handling tax fraud, recognizing that taxation often attracts criminal behavior due to its revenue potential.
“If you look at our structure here at the EFCC, we have an entire section dedicated to tax fraud. We have discovered that taxation is a major source of revenue, which naturally attracts the attention of criminal-minded individuals. Through this section, we have recovered billions for the government’s treasury as a result of investigations and prosecutions related to tax fraud,” he said.
He assured the CITN of greater collaboration.
“We do not take this for granted. As a member of the CITN, we owe you the duty to collaborate and ensure we strengthen the existing relationship,” he stated.
On his part, Agbeluyi commended the Commission’s recent initiatives to enhance the implementation of Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) measures through public-private dialogue.
“There is no doubt that the Designated Non-Financial Institutions, Businesses, and Professions (DNFBPs) in Nigeria remain among the most vulnerable areas for exploitation by criminals,” he said.
“We, therefore, seek to build an alliance with the Commission, wherein a Technical Committee comprising members from both entities will continually engage to identify vulnerabilities associated with tax crimes and evasion and jointly develop strategies to curb them,” he added.
He called for a stronger synergy between the CITN and the Commission regarding the identification of issues related to tax crimes, fraudulent financial reporting, and illicit financial flows.
What You Should Know
Nairametrics reports that Company Income Tax (CIT) collection in the first three months of 2024 declined by 12.87% from N1.13 trillion recorded in Q4 2023 to N984.61 billion.
This is according to the National Bureau of Statistics (NBS) CIT report for Q1 2024.
The report reveals that CIT collection across agriculture, manufacturing, electricity, gas, steam, real estate, and professional services all declined by double digits in the first quarter of the year.
