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Most tax evasion cccurs at state level – NFIU

The majority of tax evasion cases are reported to occur at the state level, as revealed by Mrs. Hafsat Bakari, the Chief Executive Officer of the Nigerian Financial Intelligence Unit, during the first Revenue Assurance Summit in Abuja on Tuesday, according to The Punch.

Bakari stressed the ongoing efforts of the agency to combat tax-related crimes by working closely with state tax authorities.

She highlighted that the NFIU's financial transaction data could play a crucial role in reducing tax evasion.

Initially, the efforts were focused on assisting the Federal Inland Revenue Service, but the collaboration has now been extended to sub-national counterparts, Bakari mentioned.

Bakari also presented the Crime Records Information Management System, a secure platform designed to facilitate the secure exchange of intelligence between the NFIU and state Internal Revenue Services.

Through CRIMS, paper records, which are susceptible to compromise, have been completely eliminated, and robust audit mechanisms have been implemented to track requests and receipt of intelligence, she explained.

Highlighting the role of Financial Intelligence Units in enhancing revenue generation, Bakari explained that FIUs are responsible for analyzing financial reports to identify suspicious transactions and criminal activities, including tax evasion.

Additionally, Bakari revealed that the NFIU had established a dedicated Tax Crimes and Revenue Assurance Department to prioritize tax crimes and revenue generation.

The Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, shared that the federal government is considering sanctions for agencies that fail to share data with other government bodies, in response to concerns raised by Olusegun Phillip Adesokan, Executive Secretary of the Joint Tax Board, about a government agency's request for payment for data needed by the JTB.

Oyedele emphasized the importance of collaboration and data sharing among government agencies to enhance revenue generation and warned that a law is being drafted to make data hoarding a criminal offense, with a protocol being developed to ensure integrity, data protection, and other safeguards, and a deadline of 48 hours for data release, with consequences for non-compliance.

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