Powerful Information and Communication Technology (ICT)-based inventions like Blockchain, Machine Learning and Artificial Intelligence are making tax collection difficult.
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Executive Chairman (EC), Federal Inland Revenue Service, Mr. Muhammad Nami, Tuesday warned African tax collectors of the disruptive tendencies embedded in the Fourth Industrial Revolution.
Nami spoke on Tuesday in Abuja at the start of a 3-day capacity building seminar for tax administrators from across West Africa, which the FIRS is hosting in collaboration with the West African Tax Administration Forum (WATAF) and the Inter-American Center for Tax Administrations (CIAT).
Nami noted that these technological innovations have the beneficial tendency to help revenue agencies in their assigned national task, they also have the ability to undermine tax collection.
This he said is possible “because they have created new, fluid, hard-to-trace ways of doing business that makes it difficult for revenue agencies to tax their transactions.”
Nami observed that, “in the world presently, the disruptive technological innovations such as Blockchain technology, Machine Learning and the whole gamut of Artificial Intelligence (AI) have dire consequences for developing economies in terms of revenue loss and high staff turnover.”
The effects he said “are also in the areas of staff dissatisfaction and deliberate ‘Head hunting’ of the very best of our staff by private entities which continue to deplete our work force.”
Consequently, the FIRS chairman stressed that “it is important for Managers of Human Resources in Tax Administrations to recognize the dynamics of changes occurring in the world in terms of the way businesses are being done and reported.”
It has become necessary for staff to adjust accordingly “in order for these revenue agencies to meet their mandates to the government and people of their respective nations.”
Nami told participants at the seminar “to take advantage of this event to enable us forge knowledge-based collaborations that will enhance our capacity to turn these challenges into opportunities for staff development.”
Seminar instructors and participants at the event are drawn from West African countries as well as from North and South America.
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