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Omodele Adigun
Leveraging on many opportunities in the new Finance Act , tax practitioners can now grow and expand their operations.
For instance, under the Finance Act, Micro Small and Medium scale Enterprises (MSMEs), do not need to register for Value Added Tax (VAT), their Company Income Tax (CIT) rate is zero per cent, but they must file returns.
Also, following the report by the National Bureau of Statistics (NBS) that 41 million MSMEs operate in Nigeria, the number of taxpayers registered with FIRS is over four million, and with the opportunities that abound in the new Finance Act, tax agencies ca as well capitalise on the MSMEs.
The Fiscal Policy Partner and West Africa Tax leader (PwC), Mr Taiwo Oyedele, at a workshop on Tax Practice Management, organised by the Chartered Institute of Taxation of Nigeria (CITN), in Lagos recently had said:
“As tax practitioners, this is a compelling thing to sell. Since they do not need to pay tax but for them to have their zero return, it will help you. I guarantee you that many would want to sign your contract. Our services are so essential and critical for national development.”
Oyedele talked about competitiveness, profitability, sustainability, skills and expertise as pertinent challenges facing practice firms.
To build and grow good and quality practising firms, he advised that setting up one’s practice, purposes and processes, people, products and services, should be factored in.
The CITN President, Gladys Simplice, said the objective of the workshop was to assist practitioners in navigating around the daunting challenges in setting up and managing successful practising firms in an evolving tax system and economy.
According to her, it is important that tax practitioners, which have an important role to play in the tax system, should have a firm grasp on issues, some of which are complex and usually subjects of controversies.
She emphasized the need for members to work together to assist government towards achieving a sustained national development, and in shaping the Nigerian Tax System for increased revenue generation.
Dame Simplice added that it was equally important for tax practitioners to have a worldview of tax issues such that their interactions with the tax administrators and clients will not coloured, biased or based on innuendos, but on the provisions of the relevant tax laws, regulation, procedures and processes in force at all times.
Towards having an efficient and effective tax system, she stressed on the need for professionalism and integrity in the conduct of tax practitioners.
“This workshop is intended to enhance the knowledge, skills and expertise of licensed practitioners, intending practitioners, and other interested stakeholders on the ingredients useful to having a successful tax practice.
“Taxation and its application thrive on policies and laws which are subject to periodic changes and review in line with the expectations of the managers of any economy at a particular point in time.
“Therefore, it is pertinent that a tax practitioner is highly versed with ethics, standards and documentation procedures associated with the tax practice so as to be able to deliver value driven services to the clients as well as the government,” Simpice said.
The CITN President added that the workshop was structured to be an interactive session and an opportunity for the attendees to network.
Ms Simplice also commended President Muhammadu Buhari for signing into law the Finance Bill 2019.
She said: “This is a good move and a commendable initiative which can only be sustained and improved upon in the coming years.
“And we must all work together to assist government towards achieving a sustained national development. All stakeholders including Tax Practitioners have useful roles to play in shaping the Nigerian Tax system for better performance
Also other tax veterans advised their colleagues not to negotiate tax with clients but endeavour to develop themselves and keep abreast of goings- on in the field.
According to Mr Foluso Fasoto, a past CITN president, a tax practitioner should first embrace tax law and never negotiate tax, while the incumbent Vice President of the Institute, Mr Isaac Adedayo explained that tax professional should be three in one; a tax strategist; a financial planner and a communicator.
The duo, who gave the advice on their goodwill messages were unanimous in their plea tax practitioners should follow tax laws .
Going down memory lane, Fasoto said: “CITN came from the blues and took Nigeria by surprise. About 10 or 15 years ago, if you said you were a tax practitioner, only few people would understand then.Only Ijewere & Co , and maybe, two others were engaged in tax practice. Even at that , they were still adding audit to their activities.I am happy that, today, over 500 practitioners have registered for this workshop. I want to implore us that the starting point for tax practitioners is the tax law. If you are a tax practitioner, that is your starting point before you dovetail into judicial precedents and so on. It is not to negotiate tax.”
As for Adedayo, a tax professional should put the practice on his or her lap. “In the tax world, you must be conversant with the law.You must be in touch with the tax administrators. You must be friendly and at the same time fair. Another thing I want to talk about here is value. Increase your value. Most of us are football fans. There are some players that are being sold for $250 million; $145million. That is valuation there. As a practitioner, you should increase your value. So all of us need to work on increasing our values.
“And what you should be asking yourselves are such questions as these:Are you making things happening or are you trying to stop damages from wrecking you? Are you within the right age bracket or are you not turning the right age bracket in your succession plan? Are you improving your talents and skills in the tax profession? Are you managing your image positively? Are you using the media to project your brand in a positive light? Think on these things. My advice for you, as a tax professional, don’t voluntarily allow your brain to stop working. Go ye into the terrain of tax practice and make a positive defence.”
