BENIN CITY– Edo State Internal Revenue Service (EIRS) has hailed the leadership of the Nigerian Bar Association (NBA), Edo State, for endorsing the payment of tax.
Making the commendation and accepting the request to partner the NBA on tax education and other forms of partnership, on behalf of the Executive Chairman, EIRS, Igbinidu Inneh, the Secretary, Revenue Service (SRS), Efe Iserhienrhien, expressed relief at the stand of the NBA on payment of tax which was a great departure from the combative stance of individual lawyers on the issue.
The SRS opined that the stand of the NBA would go a long way at straightening grey issues while opening up fine lines of dialogue with the view of minimizing the spate of rancour between the legal body and the tax service.
The SRS haven listened to the plea of the NBA said the service would consult and look into its books and where applicable, exercise its discretionary powers at coming up with realistic tax waivers.
Harping on section 54, of the personal income tax law which guides the pay as you earn (PAYE) principle, the SRS said principal lawyers (owners of law chambers) had to file in payee returns for practising lawyers in their chambers including those undergoing mentorship for tax is assessed based on income derived and accruing from Nigeria, from all sources. He further clarified that property tax was not the same as income tax.
The NBA team led by Collins Benson Ogiegbaen was at the revenue house to seek partnership with the EIRS, with the plea that tax assessment to members be affordable and realistic, against the backdrop that new entrants into the legal practice (less than one year) have been assessed for tax for 3-4yrs.
The NBA chair voiced that tax assessment was not an individual thing for members as whatever affected individual lawyers affected the Union.
He noted that it was erroneous to believe that lawyers did not pay tax as many members had their tax identification numbers (TIN) as evidence of tax payment.
The NBA chairman encouraged the EIRS to have a human face by taking a cue from the English Law where Equity came to ameliorate the hardships of the Common Law.
He nonetheless pleaded for a stay of action on the 30day period in which an aggrieved PAYE had the right to turn in written objections to allow for amicable reconciliation.
Though this request was turned down, the NBA was promised an expedited hearing for their objection, to make for an amicable reconciliation.