Taxation And The Capital Market

Taxation and the Capital Market is a sensitive issue for all stakeholders.An early foray into this question revealed that very heated debates were often replete with misinformation. Alarmingly, experts appeared unwilling to talk to one another and each side of the debate seemed married to their position.

Consequently, non-expert stakeholders such as the general public and individual investors were usually either informed of one side of the debate but not the other. Finally, policy-makers had to struggle to make sense of information, misinformation and the sentiments of their constituents in the search of the right policy. One challenge with making policy in such an environment is that when the macroeconomic environment evolves and the policy has to change, it is very difficult to determine which modifications will support progress.

It is clear that no one person has the right answer. However it is also clear that in the absence of common and accurate information on the subject matter, it

would be practically impossible to devise the optimal policy. The nation faces a choice between leaving a very small and unrepresentative minority to determine the policy or empowering an enlightened majority to contribute their perspectives to the policy process. This book is in favour of the latter situation whereby concerned stakeholders have access to information that will help them to participate.

Informed contributions will support policy-makers and lead to optimal tax policy. Optimal policy would foster growth in the capital market, while at the same time ensuring the consistency and sustainability of the nation's taxation policies. Optimal policy would also protect the State and the general public from negative practices that often accompany suboptimal policy. 

Mrs. Morenike Babington-Ashaye is a professional chartered accountant who has specialised in taxation for over three decades. She has presented numerous papers on taxation and was the Founder and Managing Director of City Tax Practitioners whose public advocacy work supported a new level of professionalism in tax matters. She was appointed as Chairman of the Internal Revenue Service, Ogun State and her tenure was praised for boldness, originality and a high sense of responsibility. She was a member of the Joint Tax Board of Nigeria. She is currently the President of Accounting Education and Research Services (ACCERS).

Born in May 1948, she was a graduate of the Association of Chartered Certified Accountants in 1977 and trained with Coopers & Lybrand where she began her specialization in tax law and practice. She worked in the Federal Inland Revenue Department where she consummated her experience in tax administration.

Armed with both tax practice and administration experience she offered her services to individuals, organizations and government. She has led several workshops and seminars that shed light on seemingly controversial issues which are nonetheless national priorities. Her work has made her an active partner to successive governments as she is able to convene stakeholders, practitioners, administrators and the general public to ensure that their perspectives inform changes in the tax policies and laws. Her earlier publication entitled Nigerian Income Tax Guide was published by the Financial Punch and won praise for educating the general public on their rights to pay less tax. She has taught taxation at the Lagos State Polytechnic, Yaba College of Technology and the Institute of Finance Management, Dar es Salaam where she organised two national workshops on Taxation and the Economy; and Taxation and the Capital Market in Tanzania.

She is a Fellow of the Institute of Chartered Accountants of Nigeria and a founding member of the Chartered Institute of laxation of Nigeria. She is also a founding member of the Society of Women Accountants of Nigeria (SWAN)