By Omodele Adigun
As the the Federal Government continues to explore ways of shoring up its revenue, the President of Chartered Institute of Taxation of Nigeria (CITN), Mr Adesina Adedayo, has charged the tax authority to use the Central Bank Digital Currency (CBDC), also known as e-Naira, to track both Personal Income Tax (PIT) and Company Income Tax (CIT).
According to Adedayo, who stated this Wednesday in Lagos on the sidelines of the Institute’s 2021 Business Luncheon, with theme: Digital Currency Technology and e-Naira, taxes are the veritable source of generating revenue for the government and regulators can track both individuals and corporate bodies’ incomes using the CBDC. His words: “When you look at income, which is the most important thing, if I have an e-Naira transaction with you, for instance, you sent something to me and I use my e-Naira to make the payment.Techinically, you have made an income from me. So when you make income from me, you are going to find yourself, either in Personal Income Tax (PIT) area or in Company Income Tax (CIT).
“So with this income coming in, you can use the e-Naira to track what income you have made; what profit have you been able to sustain. On the basis of that, tax comes in. When tax comes in, how much are you going to pay on Personal Income Tax or how much would you be paying on Company Income Tax (CIT)? What are the taxes that regulators can track for the purpose of saying: you have made so much income, we need to tax on the amount you have earned.”