President, Manufacturers Association of Nigeria (MAN), Mr Kola Jamodu, on Thursday in Lagos said that poor tax compliance by business operators was due to unclear tax laws.
Jamodu said this at a tax compliance seminar held for business operators in Lagos and Ogun States.
The MAN president, represented by Mr Lawrence Osayemi, the Treasurer of the association, said that most of the tax laws in Nigeria were uncertain and ambiguous.
According to him, most companies and manufacturers are faced with problems they never bargained for.
He urged the Federal and State Governments to endeavour to formulate laws that would be people-friendly and devoid of hidden charges so that people could become more tax compliant.
Mr Niyi Orebajo, a Deputy Director, Federal Inland Revenue Service (FIRS), said that FIRS was committed to settling conflicts on tax compliance with business owners.
Orebajo said that a major source of conflict between FIRS and business owners was incorporation of business without prior registration with tax officials.
“Most get their businesses registered and after then, they travel or abandon it for years until they are ready to fully commence business.
“On arrival, they are asked to pay fines for late registration, they tell you that they have not commenced business, unfortunately, sometimes, record shows that they have used the business name for a contract or the other.
“This is why we are asking potential company owners to come and sign an undertaking with us that they won’t use the business name until when they are ready,” Orebajo said.
He also urged companies that did not have tax invoice to get one and desist from cutting corners in tax payment.
Orebajo lauded manufacturers under the aegis of MAN for being relatively tax compliant than other manufacturers in the country.
