Economy
THE Commonwealth Association of Tax Administrators (CATA), has urged tax administrators to adhere to the laws, regulations and codes that safeguard the sourcingof data.
According to the association, this will ensure the storage, processing and management of data to match the pace of technological advancement.
Mr Muhammad Nami, the President of CATA and Executive Chairman Federal Inland Revenue Service (FIRS), said this at the 42nd annual technical conference of CATA in Abuja.
The News Agency of Nigeria (NAN) reports that the event with the theme “Tax Administration in the Digital Era’’ began on Monday and will end on Thursday.
Nami who said that there was an upsurge of disruptive technological innovations in the business environment, noted that they triggered peculiar issues that tax authorities were grappling with.
According to him, in recent times, there has been an upsurge of disruptive technological innovations in the business environment.
“These have triggered peculiar issues that tax authorities are grappling with.
“The business world is in a state of flux; while the character of data and its management keeps changing.
“Consequently, tax administrators are under compulsion to align their mandates with the changes arising from technological advancements.
“In matching the pace of advancement in technology, tax administrators must remain bound by the laws, regulations and codes that safeguard the sourcing, storage, processing and management of data,” Nami said.
He urged the 47 member states of CATA to brace up to the challenges that technology brought to the commercial space.
Nami said in diverse ways, all members of CATA had to deal with the challenges that transformational technology has brought to the commercial space and stay ahead of the conversation.
“As revenue authorities with common political history, the questions, then are how are we faring? What lessons can we learn from each other,” he said.
He urged participants to use the conference to produce a potpourri of ideas and solutions in a fast-changing world that requires sophisticated strategies for problem-solving.
“Although these issues are emerging, many of our jurisdictions already have several innovative solutions to addressing them. The Conference is the right platform to cross-breed ideas and share experiences we can all learn from.
“Furthermore, harmonisation of tax systems is on the front burner of the fiscal conversations in many jurisdictions.
“It is a reform that must happen for the governments to plug leakages and shore up revenue.
‘Some jurisdictions have achieved this, and they testify to its advantage over the fragmented system.
“Others need to learn how, why and what jurisdictions that have harmonised their tax systems have to share,” he said.
Nami, however, emphasised the importance of strategic partnership between CATA and other tax organisations.
While underscoring the need to work together, share experiences, and exchange notes and practices, Nami said, “our individual development rests on us working collectively to achieve the short and long-term goals of the association”.
“We must understand that the road ahead is still long, steep and daunting.
“Our challenges only get tougher as we forge ahead because technology is transforming daily, and the trends are novel and uncharted.
“As tax administrators of the Commonwealth heritage, it is fair to assume that our challenges, in this regard, would have similar identities and similar solutions.
It is imperative that we take advantage of the occasion of this conference to share and discuss with one another the challenges we face and the solutions we are proffering.
“This conference will be an avenue to improve our individual capacities as tax authorities, as well as our collective strength as a body,” Nami said.
On his part, CATA Executive Director, Mr Duncan Onduru, described the tax landscape as not getting any smoother.
According to Onduru, one of the recurring recommendations has been that countries need to simplify their tax system.
“While we agree with the need to ensure that the average man on the street can understand the legislation, we must also accept that the way modern business is undertaken creates a challenge on the legislation to keep up.
“As a result, simplification of tax legislation is not currently an easy task.
“We, therefore, need to strike a balance between the need to ensure a robust legislation that covers both the current global economic environment.
“Which also lends itself to ease of understanding to the average man on the street,’’ he said.
He, however, said that key questions must be answered in addressing the issue of simplification of tax laws, rules and procedures.
“The key questions we must ask ourselves are: are the rules, their purposes and their consequences, easy to understand and predict and do they add more complexity when taken in aggregate with the immediate and wider existing rules.
“Are the rules and their administration taking advantage of modern development, including technology?
“Can technology help manage the complexity without undermining informed choices? Is this technology available for the majority, and how are they digitally excluded or challenged served,’’ he said. (NAN)
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Tags: Commonwealth Association of Tax Administrators Duncan Onduru Muhammad Nami
