TIME FOR STRATEGIC COW MILKING.

Of course, it is obvious that with crude oil earnings and tax revenue down considerably, every government in Nigeria is hungry for more revenue, hence the tendency to tax more those who are presumed able to pay.

For all the governments, the first port of call is usually companies operating within each government's territory. Yet, unfortunately, in these trying times, just milking companies because they can pay or because they have no option could backfire.

It could force many to opt for operating and servicing the huge Nigerian market from a more friendly neighbouring country, or more importantly, it could discourage new investors from coming in.

Thus, Nigeria must be careful how it slams new taxes or applies existing laws on corporate organisations in these times.

For example, it does not make sense for the Securities and Exchange Commission (SEC) to slam penalties on companies for not filling interim results. These are unaudited figures and so, have not been certified by an audit firm as true and fair statement of the company's state of affairs.

How do you then expect such documents put together purposely to hint the capital market on the company's on going fortune be filed with regulating authorities when they can be changed or be qualified by an external auditor?

Henates suspects that it is hunger for revenue that stopped SEC from getting back to Nigerian Employers Consultative Association on this matter after initial exploratory meetings on it.

The law provides for filing of audited figures and that makes sense. And SEC has no use for unaudited figures even if, by law, it decides to ask that companies file it. So, no doubt, asking these companies to pay N1m for not filing interim when due and N25,000 thereafter for each day they do not, leaves much to be desired.

Another example and the point, it is hoped, will be made. It concerns the current law that asks users of air travel services to pay 5% of the value as tax to be remitted to the Nigerian Civil Aviation Authority (NCAA),as the regulating authority.

Nothing wrong per se in the demand but with tough times and many airlines finding it difficult to operate, it makes sense to find out from the same NCAA and stakeholders what can be done to the tax to make it less of a disincentive or source of ever growing indebtedness to the NCAA.

That way, you end up milking strategically not just because the laws permit you to or you want to earn more revenue.

As a matter of fact, it is this aspect of strategic adjustment in existing taxes and laws that the whole world has been expecting to hear President Buhari announce since he came to power since May last year as part of the regimes fiscal policy.

The times are rough now in Nigeria and so, although because of her huge population and size, money making opportunities still exist, a package of incentives is needed to keep corporate birds now in hand from flying off while at the same time attempting to attract new ones.

It is hoped that the President will use the opportunity to be offered by an invitation from the National Assembly to address it on the current recession, to announce his package of policies and incentives to get Nigeria out of the present doldrums.

Enough of pleas and pontifications not backed with incentives that will enhance the nation's unique selling point in today's investment and capital global village.

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