Stransact Caution FG against Outsourcing Tax Responsibilities to Consultant

Omolabake Fasogbon

As Nigeria moves to transit to a new government on May 29, Stransact, a correspondent firm of the RSM network in Nigeria has advised the incoming administration against the act of outsourcing tax collection to consultant. 

The firm said it considered the act as an anti- business that will do more harm than good to the economy.

General Partner at Stransact, Eben Joels while briefing the press on the company’s economic expectations for next administration urged new government to devote time and resources to develop the capacity of tax officials to effectively discharge their duties. 

He said, “Investors have more confidence and tend to relate better with Federal Inland Revenue Service FIRs than with individual. Using independent tax consultants to harass tax payers is counterproductive.  Many at times, investors refrain from divulging their business or financial record to these individuals because of lack of trust”. 

Joels also commended FIRs for coming up with an innovation like the Taxpro Max solution which is tailored for Nigerian environment. 

He tasked the authority to ensure that the technology is deployed in favour of tax payers and not to exploit or tax excessively. 

He further advised government to invest more in technologies that will drive and improve voluntary tax compliance 

On his part, Partner, People and Regulatory at Stransact, Yomi Salawu cautioned coming government against increasing tax rate or introducing new taxes. 

He said, “Already, Nigerians are overburdened with taxes, hence bringing up new taxes again will be counterproductive. To increase the revenue base, government should consider formalising the informal sector to bring more persons into the tax net.”