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Longer, analytical article.  Nigeria: Church and mosques leaders, pay your taxes
Author: Leadership, Abuja Date Written: 7 November 2009
Primary Category: Interfaith Relations Document Origin: Leadership, Abuja
Secondary Category: Western Region Source URL:
Key Words: Nigeria, Abuja, Tax Payment, exemption, opulence, FIRS

African Charter Article #17: Every individual shall have the right to education, cultural life, and the promotion and protection of values. (Click for full text...)


Summary & Comment: We agree with the author that the subject of Tax Payment exemption is a passionate and emotive subject of debate. Yet, his vision of the matter is one-sided and might harm religious bodies. The author does not differentiate between kinds of earning. Earnings or personal gains by religious people should indeed be subject to taxation. But funds collected for charitable work by religious organizations must remain tax-free. If the Federal Inland Revenue Service forgets that, it will cut off a major source of help. B.T.


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Churches, mosques, and tax payment - Federal Inland Revenue Service on the offensive

http://allafrica.com/stories/200911091221.html  

It has always been a subject of debate. It is also a passionate and emotive one, where it is difficult to gauge the true position of those involved in the debate. Often, most commentators would prefer to play the ostrich, as no one wants to be seen to be against the 'earthly manifestation of God'! Yet, many are appalled at the ostentation and indefensible lifestyle of the leaders of some religious organisations and even non-religious, non-governmental organisations.

To a large extent, the opulence displayed by some religious leaders is more manifest in churches, notably the new Pentecostal churches in our society. Many of the churches are richer than well known business organisations, or at least can give them a good chase on the highway of financial wellbeing. Recently, a leader of one of these new churches bought himself an excel jet worth 4 billion naira! Religious organisations now own hotels, businesses and shopping malls, while their leaders live very expensive and opulent lives. They drive the latest and best cars, like movie stars or business tycoons and are often adorned in latest designer suits or expensive flowing gowns. Generally, anyone who associates religion with the teachings of the Holy Bible and the Holy Qur'an would never associate some of today's religious leaders with anything religion.

Despite their wealth and property holdings, these organisations and their followers cry foul whenever the issue of their having to pay tax to government is mentioned. It is like they want to eat their cake and still have it. They use water, electricity and drive fancy cars on tarred roads built and maintained with public funds; yet they do not want to contribute to the revenue of the State. The amenities and infrastructure provided by the government enable their vocation and business to thrive, yet they are up in arms over the taxation issue. Their members hold the view that it is an abomination or an anathema for government to ask for what is due it from all that they are able to make from society.

The religious organisations appear to ignore the admonition of Jesus Christ to His disciples, followers, and the Pharisees when asked whether it was right to pay taxes to Caesar, the Roman Emperor. Jesus, the Son of God, cleverly replied that all and sundry should give to Caesar what is Caesar's and to God, His due. Also, there is nowhere in the Holy Qur'an where the revered Prophet Mohammed (PBUH) told his followers or adherents not to perform the obligation of paying tax to the state for the services rendered by the latter. All things being equal, all this will soon change though, if the Federal Inland Revenue Service (FIRS), makes good its resolve that religious organisations should fulfil their civic responsibility of paying taxes, like individuals and other organisations in society.

Speaking recently at a public occasion in Lagos, the chairman of the Federal Inland Revenue Service, Mrs. Ifueko Omogui-Okauru, said that churches and mosques are not exempted from paying taxes. She said the constitution provides that each citizen must pay tax, irrespective of where he or she works. Continuing, the FIRS boss stated that non-governmental organisations are not exempted from tax payment, as the Nigerian law recognises that you are supposed to pay tax except to the extent of your charitable activities. The argument always of voluntary organisations in Nigeria is that because the money they make is used to assist the needy, they should therefore be exempted from taxation. That is akin to a business organisation saying that because it pays salaries to its workers and thus helps the state to fight unemployment, it should not pay tax.

Most times, the amount of money put by organisations into charity is a pittance compared to what they actually collect from their members. While the Federal Inland Revenue Service is yet to make public the modalities of the tax on religious organisations and non-governmental organisations, desirous of shoring up the revenue base of its administration to finance many of its development projects for the state, the Lagos State government has commenced the implementation of a tax policy that includes leaders of religious organisations. Having succeeded in implementing the land use charge contrived to tactically replace the tenement rate as encompassing tax accruable from the property sector without the sky falling, the state government extended the payment of the Personal Income Tax to religious bodies.But unlike the property tax, the Personal Income Tax has elicited many agitations from residents.

This is because the tax affects even the clerics and imams hitherto considered as sacred cows, so to speak, in the tax administration of this country.Explaining the tax administration, the governor had repeatedly said, "I did not tax the churches and mosques. There is a constitutional provision that prohibits such taxation. But what we are saying is that anybody employed by the churches and mosques, including the hired priests and imams, must part with some percentage of their earnings to the state government as prescribed by the Pay As You Earn (PAYE) system, enshrined in the Nigerian Constitution.

The grey area that has continued to generate controversy is the taxation of donations, items and things given to churches, and that the businesses religious bodies the Pentecostal Fellowship of Nigeria (PFN) and other denominational bodies are involved in must be taxed. Islamic societies, however, havelong accepted to pay the taxes by deducting the money from the salaries of their employees, a practice that is a radical departure from what they used to do. Christians, for instance, back such payment with the Biblical injunction that Jesus Christ supported the payment of taxes to Emperor Caesar in His time.

The special adviser to the Lagos State governor on Religious Matters, Reverend Sam Ogendengbe, has been deployed by the state government to sensitise those still averse to the matter to see the transformation process going on in the state as a motivating factor to pay the taxes. Interestingly, however, there is general support even among the leaders of religious organisations for the plan by the Federal Inland Revenue Service to tax religious bodies. An Abuja-based religious leader, Pastor Paul Nwankwo, in supporting the taxation plan described a church or mosque as a house of God run and used by human beings. He said that, if the activities of those people attract the attention of government and the latter decides to tax them, so be it. He continued, "There is nothing, wrong with it; only lazy minds may decide to find fault with it. "In Matthew 22:21, it is written 'Give Caesar what belongs to Caesar and God what belongs to Gods'. Caesar here is the government." Jesus asked Zachaeus to return the excess taxes he had collected from his people to them.

Therefore, what's wrong if government wants a levy from the offerings collected in a church, or in a mosque? "Paying tax is a civil responsibility to your nation and fellow men and women. Why are the churches and mosques buying land if all is for God? "Government is an institution of God, and God is the ultimate government. A responsibility to government well honoured, means an honour to God."For churches and mosques to be levied or asked to pay tax is a responsibility which is in order. After all, the churches go to Corporate Affairs to register their names. The land belongs to God and God gives it free, but if the government on earth imposes tax because of activities performed there in addition to the worshipping of God, it is a responsibility that should be honoured."

In the words of Pastor Lynda Moses who is based in Kubwa, a satellite town in the FCT, payment of taxes by houses of God or churches is like a pastime abroad. "It may sound new here in Nigeria, but it is common practise in many foreign countries. "It all depends on modalities and the way and manner in which it would be carried out. What should be taxed, or the assessment of offerings in the churches or mosques that would be taxed shall remain the issue."The concern likely to arise is the introduction of the usual Nigerian vices, especially corruption.

It is most likely that some church and mosque leaders may attempt to circumvent the process. How much is FIRS taking from rich people in the first instance? It is most likely that it is the small churches, or even chapels that shall pay the taxes, while cathedrals will pay peanuts or nothing.My suggestion is that the matter should be handled with care; cautiously plan it to avoid it being plagued with religious or regional colouration. Some people may play up sentiment in order to forestall the process.As for me, I don't see anything wrong with it if at the end, I am not short-changed or cheated.

"An Islamic cleric, who did not want his name in print, also spoke on the issue. He said, basically religion is a sensitive issue. If I say taxing them is good, people will base it on the fact that I am a Muslim and it's because there are more churches. I can't say it's right or wrong, but the government has its reasons. To an extent people have the view that most pastors drive big, exotic cars and even buy jets.

If they can pay for parking their jets at the airport, then they should be able to pay the government too.I'm not sure that islam has a specific stand on paying or not paying tax, but logically, paying your tax is more or less a service to the society. Muslims are used to giving to the less-privileged, but if there is none around, you take your alms to the mosque and then it would be shared to them accordingly.The FIRS would undoubtedly find it encouraging that there is broad support for its plan to tax religious organisations and non- government groups. A lot would depend on the tax authority to work out the ways and means of administering the taxes to create confidence among those to be affected.leadership weekend found out that in countries like Ghana, Libya and Israel, religious groups are not taxed, though taxes are imposed when these groups engage in business ventures.

Authors: 
Louis I. Okoroma,
Ahuraka Yusuf Isah,
Julius Aminu,
Raliat Ahmed, and
George Okojie

Disclaimer: Opinions expressed in this article are those of the writer(s) and not do necessarily reflect the views of the AfricaFiles' editors and network members. They are included in our material as a reflection of a diversity of views and a variety of issues. Material written specifically for AfricaFiles may be edited for length, clarity or inaccuracies.

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