Taxation Tool To Counter Money Laundering in Nigeria — ODIRS

The Executive Chairman of Ondo State Internal Revenue Service (ODIRS), Mr. Tolu Adegbie, highlighted that effective taxation, when implemented in collaboration with relevant authorities, can serve as a tool to counter money laundering in Nigeria. 

Adegbie emphasized this during the 2nd Annual Lecture & Dinner hosted by Elizade University Tax Club at ODIRS Corporate Headquarters in Akure.

The annual lecture, sponsored by ODIRS, centered on the theme "Bridging income inequality through taxation." Adegbie, also the Patron of the Tax Club, pointed out that by closely coordinating tax authorities at federal and state levels, along with major revenue generating agencies such as the Nigerian Customs Service, Nigerian Immigration Service, NNPC, CAC, and Financial Institutions through the Central Bank of Nigeria, taxation can effectively combat money laundering.

Adegbie stressed the importance of empowering Tax Audit, Investigation, and Enforcement officers to meticulously identify any illegalities in taxpayers' income. He also underscored the significance of proper audit, investigation, and probing to address money laundering.

Barr. Adebayo Ogunsuyi, Head of Legal Department at ODIRS, noted that Nigerian tax laws empower tax authorities to investigate taxpayers' sources of income and assets. The laws provide for punitive measures against false declarations of assets or returns. The institution of taxation in Nigeria, supported by Tax Identification Numbers and Bank Identification Numbers (BVNs), aids in detecting tax and financial crimes.

Hon. Lucky Aiyedatiwa, Acting governor of Ondo State, applauded the Tax Club's concept for its potential in boosting revenue generation. He commended Chief Michael Ade-Ojo, founder of Elizade University, for nurturing the growth of the Tax Club in the university environment.

David Ologun, a Tax Consultant, remarked that Nigeria's tax system should contribute to the well-being of all citizens. He highlighted the system's goals, which include promoting fiscal responsibility, facilitating economic growth, ensuring government resources for public services, addressing income inequality, providing economic stability, and correcting market failures.

Ologun mentioned that developed countries tackle income inequality due to its negative impact on poverty reduction. He noted that Nigeria's Joint Tax Board, Federal Inland Revenue Service, and State Internal Revenue Service are focusing on various taxes to reduce income inequality.