The Chairperson of the Federal Inland Revenue Service (FIRS), Zach Adedeji has commended the Nigerian judiciary for its tax rulings, describing them as vital to boosting tax clarity, fairness, and investor confidence.
Mr Adedeji said at a workshop for the judges of the Supreme Court, the Court of Appeal, and the Federal High Court on new tax laws on Monday that the adoption of new tax laws, including amendments to the Finance Acts, the Petroleum Industry Act, and other subsidiary legislations, has “significantly reshaped our tax ecosystem” and made stronger partnerships between the judiciary and tax authorities more imperative.
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“The judiciary, through its interpretative powers, remains the ultimate arbiter in maintaining the delicate balance between the legitimate powers of tax authorities and the rights of taxpayers,” the FIRS chief said.
“Your consistent and sound pronouncements have provided stability, predictability, and fairness in the administration of the tax system.”
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Mr Adedeji stressed that prompt and consistent judicial decisions are significant for enhancing voluntary tax compliance, strengthening investor confidence and boosting national revenue generation.
“Tax disputes that are resolved promptly and based on clear judicial principles foster compliance and contribute to economic stability,” he added.
He restated the FIRS’ commitment to continuous collaboration with the judiciary through “knowledge sharing, provision of technical resources, and regular engagement.”
“As key stakeholders in the Nigerian tax system, we must continue to strengthen collaboration, foster dialogue, and develop mechanisms that promote early and effective resolution of tax disputes,” he said.
He disclosed that Nigeria’s evolving digital economy and cross-border transactions are creating new and complicated tax issues, making judicial education more vital than before.
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He expressed confidence that the knowledge acquired at the event will “enhance the quality of judicial pronouncements and contribute to a more efficient and equitable tax system in Nigeria.”
The workshop, put together by the National Judicial Institute in conjunction with the FIRS, assembled senior members of the judiciary and tax experts to review recent legal reforms and deliberate on how effective interpretation of tax laws can bolster compliance, while attracting investment.
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