Multinationals Forcing Countries To Lower Tax Rates

Multi-National Enterprises, MNEs are taking opportunities of loopholes in tax laws thus making countries to lower their tax rates in a way to attract taxation revenues, Mr. Albert Folorunsho, managing consultant at Mr. Albert Folorunsho, managing consultant at Pedabo, a tax consultancy has said.

Mr. Folorunsho spoke at the investiture of Mrs. Titilayo Fowokan as the new chairperson of the Lagos State chapter of the Society of Women In Taxation, SWIT.

While, observing that MNEs were taking advantage of loopholes in local laws as well as exploiting gaps in taxation treaties where they exist for their benefits, he said e- commerce and globalisation have made it possible for entities to arrange their businesses in a way that they can obtain tax benefits in different jurisdiction. According to him, the existence of tax havens and eagerness to attract foreign direct investment have led to some jurisdictions reducing their rates.

Speaking further Folorunsho said that dividend tax, multiplicity of taxation by various organs of government, wrong interpretation and application of tax laws, ambiguity in tax laws are some of the issues negatively affecting foreign direct investment ( FDI ) in Nigeria.

In her remarks, Fowokan said that globalization had opened the accounts of companies and made “their accounts are now visible and can be seen and viewed by everyone.”

Speaking on her plans as the new chairperson for SWIT, Fowokan said that her target  is to ensure that more women are participating more than ever before in tax matters from the state level to national. She promised to take everyone along and ensure that more women get involved in the  policy making for the country.

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