Communiqué issued at the end of the 121st Meeting of the Joint Tax Board held from 12th to 15th October, 2009 at the New Katsina Motel, Katsina, Katsina State.

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Preamble
 The Joint Tax Board held its 121st Meeting from 12th to 15th October, 2009 in Katsina, Katsina State. The Board deliberated on various issues and reached the following major decisions:-  
 
1.    Role of Taxation in the Rebranding Nigeria Project
The Board reiterates the importance of taxation as a civic responsibility and calls on relevant government agencies to implement modalities for institutionalizing taxation as part of the rebranding Nigeria project.                
 
2.    Collaboration with Other Agencies
The Board commends the current collaboration and support received from various Federal and State agencies.  It however emphasized that the task of building an efficient and credible tax system involves greater collaboration from all concerned.  The Board therefore calls on all government agencies to work closer with tax authorities in realizing the goal of improved and voluntary tax compliance. 
 
3.    Judicious Utilization of Taxpayers’ Money
The Board commends the increasing awareness of Governments at all levels on the importance of judicious spending of taxpayers’ monies on projects that directly impact the lives of the citizenry.  It therefore calls on governments to sustain this tempo.         
 
4.    Support to Tax Authorities
The Board acknowledges the efforts of Governments in funding and supporting the various tax authorities.  Given the current economic meltdown, the Board reiterates the need for granting autonomy to all State Boards of Internal Revenue to drive revenue generation.
 
5.    Stamp Duties
By virtue of S.2 of the Federal Inland Revenue Service (FIRS) Establishment Act 2007 read together with S.4.(1) and (2) of the Stamp Duties Act CAP.S8 LFN 2004, the FIRS is the only Federal agency to collect Stamp Duties.  Also S.4 (2) of CAP S.8 (supra) further empowers State Governments through their Boards of Internal Revenue to collect Stamp Duties in respect of instruments executed between persons or individuals at such rates to be imposed or charged as may be agreed with the Federal Government.The Board therefore frowns at any attempt by any Government agency to collect Stamp Duties as this act amounts to usurpation of the statutory function of the Board.  It calls on all stakeholders and taxpayers to discountenance any request for payment or remittance particularly of Stamp Duties to any agency other than the Federal and State tax authority. 
 
6.    Principles of Residency in Taxation
The Board noted that the issue of residency for the purpose of taxation as it affects some States in the country has been dealt with in the first schedule of PIT Act CAP P8, LFN 2004, which states interalia:

  1. “place of residence” in relation to an individual means a place available for his domestic use in Nigeria on any relevant day and does not include any hotel, rest-house or other place at which he is temporally lodging unless no permanent place is available for his use on that day.
  2. “principal place of residence” in relation to an individual with two or more places of residence on any relevant day, not being both within anyone territory means -(a)    in the case of an individual with no source of income other than a pension in Nigeria, that place of those places in which he usually resides;(b)    in the case of an individual who has a source of earned income other than a pension in Nigeria, that place of those places which on a relevant day is nearest to his usual place of work;(c)    in the case of an individual who has a source or sources of unearned income in Nigeria, that place of those places in which he usually resides.The Board therefore calls on corporate entities, employers of labour and individuals to fully comply with the Act.

 
7.    Progress on the Unique Taxpayer Identification Number (UTIN) Project
The Board reviewed the progress made on the UTIN Project and commended the efforts of the UTIN Project Committee in the implementation process.  In view of the immense economic and political importance of the project to the nation, the Board calls on all stakeholders to support the project.  
 
8.    Role of Traditional Institutions in Taxation
The Board appreciated the support of Royal Fathers and the role traditional institutions had played in tax administration before the discovery of oil.  The Board therefore appeals to Royal Fathers to assist tax authorities in ensuring taxes are paid as and when due.

Year of Meeting: 
Tuesday, September 15, 2009