- 15 Marks
Question
The Nigeria Extractive Industries Transparency Initiative (NEITI) was established through the NEITI Act, 2007. The body has the responsibility for the development of a framework for transparency and accountability in the reporting and disclosure of revenue due to or paid to the Federal Government by companies in the extractive industry.
In the same vein, the National Tax Policy, 2017, expressly stipulates the responsibilities of the various stakeholders towards the achievement of efficient tax administration in Nigeria.
Required:
a. Discuss the vision, mission and FOUR primary objectives of NEITI as provided for in the enabling Act.
(6 Marks)
b. Explain THREE responsibilities of each of the under listed stakeholders as provided for in the National Tax Policy, 2017:
(i) The government (3 Marks)
(ii) The taxpayer (3 Marks)
(iii) Revenue agencies (3 Marks)
Answer
a.
The vision, mission and objectives of the Nigeria Extractive Industries Initiative (NEITI)
Vision The vision of NEITI is to build a NEITI that is accountable, effective, well- resourced and result oriented.
Mission The mission is to cultivate a culture of transparency, accountability, due process and zero-tolerance for corruption in Nigeria‟s extractive industries, for the benefit of the citizenry.
The primary objectives of the NEITI are to:
- Ensure due process and transparency in the payments made by all extractive industry companies to the Federal government and statutory recipients;
- Monitor and ensure accountability in the revenue receipts of the Federal Government from extractive industry companies;
- Eliminate all forms of corrupt practices in the determination, payment, receipts and posting of revenue accruing to the Federal Government from extractive industry companies;
- Ensure transparency and accountability by government in the application of resources from payments received from extractive industry companies; and
- Ensure conformity with the principles of global Extractive Industries Transparency Initiative (EITI).
b.
Responsibilities of the under listed stakeholders
(i) The government All levels and arms of government; ministries, extra-ministerial departments and agencies where applicable shall:
- Implement and regularly review tax policies and laws;
- Provide information on all revenue collected on a quarterly basis;
- Ensure adequate funding, administrative and operational autonomy of tax authorities; and
- Ensure a reasonable transition period of between three and six months before implementation of a new tax.
(ii) The taxpayer
A taxpayer is a person, group of persons or an entity that pays or is liable to tax. The taxpayer is the most critical stakeholder and primary focus of the tax system. The taxpayer shall consider tax responsibilities as a civic obligation and constant duty that must be discharged as and when due.
The taxpayer shall be entitled to:
- Relevant information for the discharge of tax obligations;
- Receive prompt, courteous and professional assistance in dealing with tax authorities;
- Raise objection to decisions and assessments and receive response within a reasonable time;
- A fair and impartial appeal; and
- Self-representation or by any agent of choice, provided an agent acting for financial reward shall be an accredited tax practitioner.
(iii) Revenue agencies
Any agencies responsible for the collection and administration of revenue shall:
- Treat the taxpayer as a customer;
- Ensure efficient implementation of tax policies, laws and international treaties;
- Facilitate inter-agency co-operation and exchange of information;
- Undertake timely audits and investigations;
- Undertake tax awareness and taxpayers‟ education; and
- Establish a robust process to prevent, detect and punish corrupt tax officials.
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