Home Finance FG to review tax treaties with foreign countries

FG to review tax treaties with foreign countries

by Business News Report

The Chartered Institute of Taxation (CITN) has disclosed that the Federal Government plans to review existing tax treaties with some foreign countries. Mr Sunday Jegede, the CITN President, made the disclosure on Friday in Lagos.
The Federal Government has ordered the Federal Inland Revenue Service (FIRS) to review Nigeria’s tax regime to ensure that tax treaties would give maximum value to the country. “The country’s lack of participation in international tax treaties is an active hindrance to foreign investments coming into Nigeria and the expansion of Nigerian companies to overseas markets,” Jegede said. He said that the review would enable Nigeria to achieve the Millennium Development Goals (MDGs) and more buoyant economically.
Jegede, who is also the President of Association of African Tax Institutes (AATI), said that the review would restructure trades that were under-cutting revenues accruable to the country. According to him, it will domestically and externally address the challenges posed by the incidence of multiple taxation in the country.
“For instance, there are some Nigerian companies that are paying taxes locally and still subjected to taxation abroad. This review, when completed, would put an end to a situation whereby foreign companies operating in the country are made to pay taxes in their home countries and in Nigeria,” he said. Jegede said that double taxation had hindered investment climate in Nigeria.

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