CITN inducts 826, charges members on tax implications of digital economy

By Olusegun Obisanya

The Chartered Institute of Taxation of Nigeria (CITN), has charged its members to rise to the challenge posted by digital economy to their professional career and in revenue generation.

The organisation noted that notwithstanding the benefits of digital economy, its implication on tax is the urgent issue confronting revenue authorities.

The President/Chairman in Council, CITN, Adesina Adedayo made this known at the 47th induction ceremony of the organisation recently held in Lagos.

CITN inducted 770 members into the fold of tax professionals in Nigeria.

Adedayo posited, “Let me use the opportunity of this platform to speak to members about the most pertinent issues in the tax professionals in Nigeria today. It is given that taxation in the 21st century 4th Industrial Revolution era has transformed significantly. The use of Big data, Internet of Things (IoT) and Data Analytics among other digital complexities has become the new world order.

“The digital economy has grown dramatically worldwide, leading to the growth in e-commerce and online transactions. Despite the advantages linked to the expansion of the digital economy, several challenges have also originated.

“In the midst of this challenges, tax implications of the digitalised economy are perhaps the most urgent that bedevils revenue authorities, policymakers of governments, international organisations and tax professionals.”

According to him, tax administration in Africa and indeed Nigeria remains unclear on the most effective and efficient way to tax the digital economy, yet the challenges arising from technological advancement and intricate business models continue to mount; thus, increasing the likelihood of tax revenue leakages.

He explained that several efforts both at the regional and international levels have been to address the issues including the United Nations Guidelines on Transfer Pricing, efforts to regulate Base Erosion and Profit Shifting through the BEPS projects, OECD Transfer Pricing Guidelines and ATAF guidelines on intangibles among other unilateral and bilateral efforts.

“It therefore behoves on us as tax professionals who are the “Hope of the Nation” to constantly engage and contribute meaningfully to the Country Impact Assessment of the OECD Tax Deal in Nigeria,” CITN President added.

He therefore implored tax professionals who thronged the ceremony “to constantly upskill your knowledge on global trends in taxation,” charging them to avail themselves of the institute’s various trainings, conferences, workshops, seminars and specialised training programs to enable them update themselves on new developments in the tax system.

He harped on the need for members to maintain incorruptible ethical conduct while striving for excellence.

Adedayo stated, “As you progress in your various fields, please do not fall into the trap of complacency. The Institute expects you to hold in high esteem her core values which have been redefined as: Service, Teamwork, Excellence and Professionalism (S.T.E.P).  I beckon you therefore, to strictly adhere to these guidelines and principles in the course of your professional engagements.

“As a check mechanism, the Council of the CITN has in place an Investigating Panel which is empowered by the Charter to investigate cases of professional misconduct as they affect members. Also, the Disciplinary Tribunal is also awake to its function of disciplining any member found wanting.”

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