The Federal Inland Revenue Service (FIRS) has expressed enthusiasm for a proposed partnership with the Nigerian Institution of Estate Surveyors and Valuers (NIESV) focused on enhancing asset valuation. During a recent meeting in Abuja, the FIRS Chairman, Zacch Adedeji, emphasized that such collaboration could significantly improve tax administration and boost economic growth in the country. This meeting marked a notable gathering of FIRS executives and NIESV representatives, including their President, Victor Alonge, highlighting the importance of synergistic efforts in asset valuation for tax-related processes.
Adedeji highlighted the critical role that NIESV plays in FIRS’s mandate, which includes assessing, collecting, and accounting for revenue within the Federation. He pointed out that the accuracy of asset valuations is crucial in ensuring effective tax assessments, particularly regarding Capital Gains Tax. The FIRS Chairman reiterated that without accurate filings and well-valued assets, the agency’s ability to assess taxes effectively is hindered. Adedeji’s statements underscore the need for official collaboration and proposed the establishment of a memorandum of understanding to formalize this relationship, thus making it easier for the two bodies to work together towards their common goals.
During the meeting, Victor Alonge voiced the NIESV’s commitment to contributing their expertise in asset valuation to assist FIRS in ensuring accurate Capital Gains Tax compliance. Alonge indicated the likelihood of government revenue losses due to discrepancies in asset valuation and tax filing, highlighting the necessity for measurable improvements in this area. He asserted that the NIESV’s professional knowledge could facilitate the determination of accurate values for both public and private taxable properties, ensuring that appropriate tax levels are applied and ultimately enhancing government income.
The foundation of NIESV in 1969, primarily consisting of General Practice Chartered Surveyors trained in the UK, reflects a long-standing tradition of professionalism in the field. The Estate Surveyors and Valuers Registration Board of Nigeria serves as the regulatory body for the profession, ensuring standards are met within the industry. This historical backdrop highlights the institution’s commitment to evolving and adapting within Nigeria’s economic landscape. The emerging partnership with FIRS represents a landmark moment that seeks to assert the importance of accurate asset valuation in the realm of tax administration.
In essence, the proposed partnership is not merely a strategic move for FIRS but a critical step toward fostering collaboration between tax authorities and valuation professionals. As Alonge pointed out, placing accurate values on assets prior to their disposal could have a profound impact on national revenue streams, catalyzing broader economic development. Such collective efforts would help embody the integration of professional standards in tax matters and reinforce the framework for existing and future tax practices, aligning them with the nation’s growth objectives.
In conclusion, this developing relationship between FIRS and NIESV underscores the importance of accurate asset valuation for effective tax administration and economic stability. By partnering, both entities can bolster their contributions to sustainable economic development, ensuring compliance and enhancing revenue collection in Nigeria. With an official agreement in place, the framework for collaboration will provide the necessary tools to address current deficiencies in tax assessments and, by extension, support the overall economic environment in the country.
