Experts Offer Solutions to Taxation, Corporate Governance in IT

Experts in tax regulatory matters and corporate governance have joined the Nigerian Communications Commission (NCC) and telecoms providers in seeking palliative measures to the incessant multiple taxation in the industry.

The experts who spoke to Nigeria CommunicationsWeek during a capability enhancement workshop organised for Journalists in Lagos by PricewaterhouseCoopers Limited (PwC) in Lagos, said that ICT industry requires ‘commencement rate’ kind of taxation, as soothing measure to attract and maintain investors’ confidence in the country.

They are also of the view that corporate governance plays major roles in determining the attitude of service providers towards issues that directly impact their operations.

According to Taiwo Oyedele, partner and head of Tax and Regulatory Services, PricewaterhouseCoopers Limited (PwC), identified lack of understanding among policy makers as contributory factor to the multiple taxation.

Oyedele added that smaller ICT companies are dying in droves due to the improper taxation and infrastructural deficits. 

“There is multiple taxation to be honest. It does not affect only the ICT sector; they feel it and manufacturers as well. For the ICT sector, the multiple taxation they face is evident in other sectors. Why there is peculiar is because most people assume they have money. When they here or talk about ICT, what comes to their minds is either MTN, Glo, Airtel, or Etisalat. It is unfortunate they have failed to recognize there are a lot of ICT companies struggling. So, when laws are been passed, the target has always been the big players, at the end, the smaller companies can’t cope. Multiple taxation is choking smaller companies out.

Also, Cyril Azobu, partner, Advisory Services, PricewaterhouseCoopers Limited (PwC), said that corporate governance in the IT sector has become a sine qua non, especially in tackling advanced IT risks management.

Azobu said, “A lot has happened within the digital space, particularly when it concerns to cyber security pass with issues relating to cyber cities generally. A few things were done around cyber risks. The risks need to be addressed; not only in the private sector, but within the Government arena by ensuring that appropriate security is in place especially within the banking space. I am sure we have enough experts in that space who can address the menace.

“This is critical in today’s economy as we go digital. A lot of technology disruptions are taking place. For instance, telecommunications companies are now engaging in banking activities. That presents a new set of challenges; it is unfolding. It is left for experts to help in that manner, to help our people leverage the digital economy. What the society needs a sort of trust; whether we like it or not, that is where the world is headed.