The Nigerian government has stated that some of the provisions of personal tax laws in the country need reform.
The Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami, who revealed this on Tuesday in Abuja at a national stakeholder workshop on tax law reforms, said reform is key to the continuing relevance of the laws.
“The resolution to embark on the reform of the Personal Income Tax Act, p8 LFN, 2004 and the Personal Income Tax (Amendment) Act, 2011 by the Reform Commission of the law of Nigeria comes at a most appropriate time to remedy some of its shortcomings,” the AGF said.
Represented by the federation’s acting solicitor general, Benjamin Okolo, the AGF noted that there are gaps in the personal income tax law provision which includes, the state’s determination to which an employee working in an offshore installation must pay tax among others.
“Imposing a tax liability on the community/family when it does not exist in Nigeria,” AGF added.
The Chairman of the Nigeria Law Reform Commission (NLRC), Prof. Jummai Audi, in his opening address also asserted that the Personal Income Amendment, PITAM 2011, needs to be reviewed urgently to clarify and improve the tax administration in Nigeria.
According to Professor Audi, areas that need immediate consideration are that tax authorities should be instructed to first obtain a warrant from a court before they can enter and search premises implicated in tax offences.
“Employee expenses for training and development, research and necessary travel expenses should be part of the allowable deduction,” Professor Audi said.