The United nations and development programme (UNDP) reproposed to assist Nigeria tackling tax crimes and make a remarkable reform in the country.
This information came to the know when it was officially published using official UNDP website.
The statement read: “Nigeria needs a coordinated approach to tackle tax crimes due to overlapping regulatory oversight. A critical step is fostering cooperation among parallel agencies through a comprehensive understanding of each agency’s functions, legislative powers, and their ability and willingness to collaborate.”
Corruption breeds tax crimes
According to the organization in the statement, tax crimes and corruption are closely intertwined, with individuals and companies engaged in corrupt activities often failing to report illicit earnings for tax purposes and inflating income from legitimate sources to launder corrupt proceeds.
The statement published on the UNDP’s website read: “When we think of tax crimes and corruption, we often view them as independent of the other. However, they are two sides of the same coin. Individuals and companies engaging in corrupt activities rarely report illicit earnings for tax purposes. Instead, they often inflate income from legitimate sources to launder their corrupt proceeds.
“This makes cross-collaboration between tax authorities, law enforcement, and financial oversight agencies essential for effectively deterring, detecting, and penalizing these crimes.”
What you should know
Nairametrics earlier reported that the Federal Government, in partnership with the United Nations Development Program (UNDP) and the Organisation of Economic Co-operation and Development (OECD), launched the Tax Inspectors Without Borders for Criminal Investigation (TIWB-CI).
The UNDP statement noted that TIWB-CI, which is designed to be implemented in three phases over 24-30 months, will have its impact and achievements evaluated based on inputs from all stakeholders, following a standard evaluation framework.
Participating agencies in this initiative include the Independent Corrupt Practices Commission (ICPC), Economic and Financial Crimes Commission (EFCC), Tax Appeal Tribunal, Nigeria Customs Service (NCS), Nigerian Financial Intelligence Unit (NFIU), Nigeria Police Force (NPF), with the Federal Inland Revenue Service (FIRS) serving as the focal point and secretariat.
The UNDP’s Tax for SDGs initiative supports developing countries in increasing domestic resource mobilization and achieving the SDGs, with TIWB-CI as a pivotal program.
Following the completion of an Action Plan, the next phase of the TIWB-CI program will focus on implementing the recommendations to enhance the capabilities of tax authorities, foster unprecedented collaboration, and pave the way for a future where tax crimes are effectively deterred, detected, and penalized appropriately.
The statement noted that collaboration with Nigerian crime agencies positions the country for fair and equitable taxation practices, especially due to Nigeria’s decentralized tax crime investigation system.
It added that by curbing illicit financial flows, TIWB-CI aims to help preserve government revenue, which can be reinvested in critical sectors for national development, especially the SDGs.
The House of Representatives recently passed the second reading of a bill aimed at creating the National Tax Crimes and Oversight Commission.
Rep. Nweke Uche (PDP-Rivers), a co-sponsor of the bill, emphasized that the establishment of this proposed commission would tackle inconsistencies in tax assessment, reporting, and remittances.