Exactly one year ago, my prediction for 2014 was published in the Guardian Newspaper (see excerpt below):
"Given the likelihood of excess crude oil supply globally in 2014, as a result of key factors such as the recent G5+1 deal with Iran, shale oil development, various crude oil discoveries across Africa and so on; one would expect the price of crude oil to fall. This will put further pressure on the dwindling government revenue in the face of rising expenditure profile particularly on education following the 6-month strike by ASUU, security and defence and election spending.
The revenue gap will be funded partly by borrowing, and also by tax. It will be unpopular in a pre-election year to introduce new taxes except it affects a selected few like luxury tax on private jets. Therefore government will seek to expand the tax net to get more from the existing taxes. Presumptive tax for the informal sector is a potential consideration. Also inflation tax by way of quantitative easing and devaluation of the Naira against major currencies are probable. I expect government to have less appetite for tax incentives and waivers and make a move to stop the abuse of existing incentive regime. The planned rebasing of Nigeria's GDP will make the current abysmal ratio of tax revenue to GDP of less than 7% even worse. Tax authorities will therefore be put under immense pressure to collect more taxes." (full article attached).
The year 2014 will go down in history as one year in which tax matters was prominent in national and global discourse across the spectrum.
Read my article published in today's BusinessDay which outlines some of the major events of the past year and looks into the crystal ball for 2015 covering various aspects from fiscal policy and legislation to administration and tax adjudication.
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