- 15 Marks
Question
The National tax policy (NTP) 2017, provides fundamental guidelines for the orderly development of the Nigerian tax system. Professional accountants are one of the major stakeholders that are expected to drive the tenets of the tax policy for economic development of the country. In guiding professional accountants to behave in a responsible ethical manner, the International Ethics Standards Board for Accountants (IESBA) develops and issues in the public interest, high-quality ethical standards and other pronouncements for use by professional accountants around the world.
Required:
a. Explain FIVE fundamental features as provided for in the NTP 2017, which the existing and future taxes are expected to align with. (5 Marks)
b. Identify and explain FOUR principles and guidance for accountants as specified in the IESBA codes. (10 Marks)
Answer
a. Fundamental Features of NTP 2017:
- Simplicity: The tax system should be straightforward and easy for taxpayers to understand, minimizing complexities.
- Equity: Tax laws should ensure fairness and equity, with similar incomes bearing similar tax burdens.
- Certainty: Clear and predictable tax policies that allow taxpayers to plan their obligations accurately.
- Flexibility: The tax system should adapt to economic changes to remain relevant.
- Efficiency: Taxes should be collected cost-effectively and support economic growth and development.
b. IESBA Principles for Accountants:
- Integrity: Professional accountants should be honest and forthright in all professional relationships.
- Objectivity: Accountants should not allow biases, conflicts of interest, or undue influence to override their professional or business judgments.
- Professional Competence and Due Care: Maintaining professional knowledge and skill at a level to provide competent professional service is essential.
- Confidentiality: Accountants should respect the confidentiality of information acquired and not disclose it without proper authority or legal obligation.
- Topic: Tax Administration and Dispute Resolution
- Series: NOV 2023
- Uploader: Dotse