Taxing times: Is another certification really the answer?
A debate is brewing within Nigeria’s tax community, sparked by a proposal for a new certification process for tax practitioners. The initiative, touted as a means to enhance competency, integrity, and self-compliance within the profession, involves a new examination, recertification requirements, and the establishment of a government-managed portal for “approved” practitioners. However, the plan has raised eyebrows, with many questioning its necessity and potential implications for existing professional bodies like the Institute of Chartered Accountants of Nigeria (ICAN), the Chartered Institute of Taxation of Nigeria (CITN) and the Association of National Accountants of Nigeria (ANAN).
The fundamental question at the heart of this debate is whether the proposed new certification is truly needed. Critics argue that ICAN, ANAN, and CITN already fulfil the objectives that the new system seeks to achieve. These professional bodies administer rigorous examinations and internship programmes to assess the competency of aspiring tax practitioners. They also issue practice licences, which are essential for engaging in tax-related services. Furthermore, ICAN, ANAN and CITN have established mechanisms for enforcing ethical conduct, with members facing sanctions, suspensions, or even removal from the rolls for violations of professional standards. Compliance is also a cornerstone of membership, with practitioners required to demonstrate their adherence to tax laws by filing their own returns annually.
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Given the existing framework, many within the tax profession are questioning the rationale behind creating an entirely new system outside of these established bodies. Why, they ask, invest in building a parallel structure when efforts could be directed towards strengthening and refining the existing institutions? The concern is that establishing a new certification process could undermine the credibility and relevance of ICAN, ANAN and CITN, potentially leading to a fragmentation of the profession and a dilution of standards.
If the proposed certification goes ahead, the implication is clear: membership in ICAN, ANAN or CITN may no longer be the prerequisite it once was for practising taxation in Nigeria. This could create a situation where individuals holding the new certification gain an advantage over those with traditional qualifications, regardless of their experience or expertise. Such a scenario would not only devalue the hard work and dedication of ICAN, ANAN and CITN members but also create uncertainty and confusion within the tax profession.
The heart of the matter lies in accountability. Instead of adding another layer of bureaucracy and creating a potentially redundant system, efforts should be focused on holding existing institutions accountable to the standards they have already established. This means strengthening the regulatory oversight of ICAN, ANAN and CITN, enhancing their enforcement mechanisms, and ensuring that they are effectively addressing any gaps in competency, integrity, or compliance. It also requires fostering a culture of continuous professional development, where tax practitioners are encouraged to stay abreast of the latest developments in tax law and practice.
The proponents of the new certification may argue that it is necessary to address specific shortcomings within the existing system. However, it is crucial to carefully consider whether these shortcomings can be adequately addressed through reforms and enhancements within ICAN, ANAN and CITN. Creating a parallel system risks duplicating efforts, wasting resources, and ultimately undermining the very institutions that are essential for maintaining the integrity and competence of the tax profession.
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The question before Nigeria’s tax community is whether this proposed certification represents the future of tax practice or merely another layer of bureaucracy. The answer will determine the direction of the profession for years to come. It is essential to engage in a thoughtful and informed debate, considering all perspectives and weighing the potential consequences of this decision. Ultimately, the goal should be to strengthen the tax profession, promote ethical conduct, and ensure that Nigeria has a competent and reliable cadre of tax practitioners who can contribute to the nation’s economic development. The road to reform should not be paved with redundancy but with a commitment to building on the foundations that have already been laid.
Adeniyi Bamgboye, MBA, FCTI, FCA, FCCA, a dual qualified chartered accountant, tax expert, and policy analyst, is the managing partner of Empyrean Professional Services, an audit, business, and financial advisory firm dedicated to enhancing its clients’ business value. 08060603156. [email protected]
