The Executive Chairman, Federal Inland Revenue Service, Babatunde Fowler, has said the agency will review unfavourable aspects of the tax laws in the insurance industry.
He said this during a seminar on taxation matters in insurance industry, which was organised by Leadway Assurance Company Limited in Lagos.
Fowler said, “From recent engagements, it has been identified that there are some provisions of the tax laws that are not favourable to the insurance industry and several suggestions have been made.
“Further to these suggestions, proposals have been made to amend such provisions of the law in order to allow a level playing field to all taxpayers in line with the taxation of equity and fairness.”
Fowler, who was represented by the Regional Coordinator, FIRS, Mrs Toluwalase Akpomedaye, said that part of the rights and obligations of insurers were access to relevant information for the discharge of tax obligations; to apply and receive a tax clearance certificate; to receive prompt, courteous and professional assistance in dealing with tax authorities.
While making a presentation on “Tax issues in the insurance value chain,” Leadway Assurance stated that tax and insurance are two important aspects of the economy yet to live up to their potential.
It noted that Nigeria did not have enough revenue and faced other issues such as management of revenue.
Leadway also stated in its presentation that while it was important for the industry to pay tax at all levels, there was the need for a new FIRS circular, WHT, to be collected if there was cash outflow; intermediaries should account for their CIT and VAT; FIRS should create a level playing field; and section 16 of the tax law should be reviewed.