The Nigerian Government has said some of the provisions of the personal tax laws in the country are in need of reforms.
The Attorney-General of the Federation (AGF) and Minister of Justice, Abubakar Malami, who disclosed this in Abuja on Tuesday at a national stakeholder’s workshop on the Reforms of Tax Laws, said the reform is essential for the continuous relevance of the laws.
“The resolution to embark on reform of the personal income tax Act, p8 LFN, 2004 and personal income tax (Amendment) Act, 2011 by the Nigeria Law Reform Commission is coming at a time most appropriate to remedy some of its defects,” the AGF said.
Represented by the acting solicitor-general of the federation, Benjamin Okolo, the AGF noted that there are defects in the provision of the personal income Tax Act which includes, determining the state to which an employee working in an offshore facility should pay tax among others.
“Imposition of tax liability on community /family when such does not exist in Nigeria,” AGF added.
The Chairman of the Nigeria Law Reform Commission (NLRC), Professor Jummai Audi in her opening remark also affirmed that the personal income Amendment, PITAM 2011 urgently need to be reviewed to provide clarity and improvement to the tax administration in Nigeria.
According to Professor Audi, the areas that need immediate review was that tax authorities should be mandated to first obtain a warrant from a court before they can enter and search premises involved in tax offences.
“Employee expenditure on training and development, research and necessary travelling expenses should be part of the allowable deduction,” Professor Audi said.
