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Economic Confidential,
November, 2009
TAX MATTERS
Re:
Churches and Mosques Must Pay Taxes
By
Dr. John Edemode,
Your publication (Economic Confidential print
edition) for the Month of November 2009 p.12 refers. FIRS
notes and appreciates your continued partnership and support in its
publicity, information, education and sensitization for pro-tax
attitude and behavior to Nigerian taxpayers. However, it needs to be
pointed out that your caption and the intro as contained in the
above story were completely at variance with the direct statements
of the Executive Chairman, Federal Inland Revenue Service which you
quoted in the body of the report.
The
law on taxation has always been there. It is not the creation of the
Federal Inland Revenue Service. In fact, the Company Income Tax Act
section 23 (a-r) is explicit on exemptions to ecclesiastical,
charitable, and educational institutions.
In
particular, section 23 (c) grants tax exemptions to a company
“engaged in ecclesiastical, charitable and educational activities of
a public character in so far as such profits are not derived from
trade or business carried on by such company.”
The
Executive Chairman, FIRS, DID NOT SAY OR INSIST THAT CHURCHES,
MOSQUES, AND NGO’s ARE NOT EXEMPTED FROM TAX PAYMENT as stated in
your story. However, the legal requirement that NGO’s should fill
their annual reports and file same with the FIRS should be noted.
The
position of the Federal Inland Revenue Service which is consistent
with the law is that individuals who work in any organization and
receive salaries therefrom are required to pay tax. This is the
Nigerian government law on taxation.
The
Executive Chairman, FIRS did not at any point in your report say
anything to the contrary. In fact your verbatim report of the
Executive Chairman, FIRS reads thus “if church or mosque is involved
in doing business, it is subject to pay tax.” This, you will agree,
does not in any way mean that the church or a mosque must pay tax.
The
story as presented conveys a different and unintended meaning to the
reader/public. In fact, FIRS has since your publication of this
report been inundated with questions and inquiries from the public
on the legal position of the payment of taxes by religious bodies
and Non-Governmental Organizations. Therefore, in the advancement of
truth, public interest and information, it would be appreciated if
you give the above clarifications equal publicity to ensure the
public is properly informed on this and other sensitive tax issues.
FIRS uses this opportunity to reassure all Nigerians, especially
individuals and corporate taxpayers, that it shall be guided by
relevant laws and its statutory mandate in all its operations and
interactions with the public and taxpayers at all times.
While counting on your continued support and partnership with FIRS,
please be at liberty to visit our website at www.firs.gov.ng call
0703 551 8245 or direct any inquiry to:
Corporate Communication Department,
Federal Inland Revenue Service,
15,
Sokode Crescent,
Wuse Zone 5,
Abuja.
Dr. John Edemode,
Special Adviser (Communications) to the Executive Chairman,
Federal Inland Revenue Service. |
