The Nigerian Chartered Institute of Taxation has added 826 new members to its institute.
This was announced by the president of the Institute, Adesina Adedayo, at the 47th induction in Lagos.
In his opening remarks, Adedayo said: “The digital economy has grown dramatically around the world, leading to the growth of e-commerce and online transactions. Despite the benefits associated with the expansion of the digital economy, there have also been several challenges. Amidst these challenges, the tax implications of the digitized economy are perhaps the most urgent plaguing tax authorities, government policymakers, international organizations and tax professionals.
“The tax administration in Africa, and indeed Nigeria, remains unclear on the most effective and efficient way to tax the digital economy, but the challenges arising from technological advancement and intricate business models continue to increase; thus increasing the likelihood of tax revenue leakage,” he said.
He noted that several international and regional efforts have been made in recent times to address these issues. Some of which include the United Nations Transfer Pricing Guidelines, efforts to regulate tax base erosion and profit shifting through BEPS projects, the OECD Transfer Pricing Guidelines and guidelines of the ATAF on intangibles, among other unilateral and bilateral efforts.
It stated: “Regarding the OECD’s Two-Pillar Solution, ATAF, on behalf of African countries, has raised questions about the effectiveness and inclusiveness of the proposed provisions and the guiding pillars of the envisioned global tax rules. Similarly, CITN recently engaged key stakeholders in a roundtable to assess the feasibility and adoption or otherwise of the OECD’s Two-Pillar Solution. While opinions still exist as to which strategy will prove most effective for a mono-high consumption economy like Nigeria, I believe that a thorough assessment of the impact of the Fiscal Agreement would put our decision as a nation in proper perspective.”
Therefore, it is incumbent on us, as tax professionals who are the ‘Hope of the Nation’, to consistently participate in and contribute meaningfully to the OECD Tax Settlement Country Impact Assessment in Nigeria. To do this effectively, I implore you to constantly improve your knowledge of global tax trends. The Institute, including the CITN Tax Academy, organizes various specialized trainings, conferences, workshops, seminars and training programs to enable our members to be updated on new developments in the tax system.