Saturday, September 22, 2018 07:05AM / CITN
The Chartered Institute of Taxation of Nigeria wishes to remind all her members in Full time or Part time practice of the urgent need to obtain CITN seal and stamps on or before December 31, 2018.
As from January 2, 2019, all tax computations and filing of tax returns are to be done by licensed Tax Practitioners and must be affixed with CITN Stamps and Seal while the accompanying audited account would carry ICAN or ANANStamps and Seal. For those in practice and are yet to be certified by CITN, the MOUbetween CITN and ICAN guarantees them direct admission as Associate members of the Institute. The next membership induction is slated for November 2018. Please be guided.
The power of CITN to regulate tax practice is enshrined in its enabling Charter, CITN ACT Cap C.10 Vol 2, LFN 2004 and affirmed as follows by Hon. Justice Lateefat Okunnu in CITN v. ICAN, March 12, 2007;
"The lawmakers in their wisdom, have created a new profession out of tax practice. It is not for the court of law to question them for so doing. Nor can the court (by means of its pronouncements) to abrogate this law simply because a particular judge is not enamoured of it. This particular law-CITN Act - I find, has come to create a new order that did not exist. It has created the taxation profession, and determined and defined the "space", as it were, within which that profession is to exist and be practiced".
RELIEFS GRANTED BY THE LAGOS HIGH COURT JUDGEMENT OF 12TH MARCH, 2007 IN CITN V. ICAN, WHICH WERE AFFIRMED BY THE COURT OF APPEAL, LAGOS DIVISION, ON 15TH FEBRUARY, 2013 IN ICAN v. CITN are as follows:
A Declaration is made that taxation is legally recognised in Nigeria as a profession separate and distinct from the accountancy profession.
A Declaration is made that CITN is vested with power to regulate and control the practice of taxation in all its ramifications to the exclusion of ICAN and any other professional body or Institute in Nigeria.
A Declaration is made that it is unlawful for ICAN to forestall or impede CITN's efforts to regulate tax practice.
Furthermore, the MOU between CITN and ICAN encourages ICAN members to join CITN and enjoy the privilege of practicing taxation after fulfilling the requirements. Details of the MOU between Institute of Chartered Accountants of Nigeria and Chartered Institute of Taxation of Nigeria dated 12th of February 2015 are as follows;
· That the Appellant (ICAN) will rescind the directive or resolution barring its members from joining the Respondent (CITN).
· That all members of the Appellant who hold the Appellant's licence to practice shall be granted direct membership of the Respondent, with full rights to practice taxation upon the completion of the Respondent's membership form only.
· That members of the Appellant without licence to practice and who desire to practice taxation shall be granted direct membership of the Respondent with full rights to practice taxation after fulfilling all membership requirements as laid down by the Respondent subject to applying for and obtaining the Respondent's practicing licence as applicable to other members of the Respondent before being entitled to practice taxation, PROVIDED always that members of the Appellant shall not be required to sit for qualifying examination as a condition for being granted direct membership of the Respondent.
· That members of the Appellant who resigned their membership of the Respondent on the directive of the Appellant shall, upon a written application for reinstatement to their old membership status, pay the subscription for 2015 only, if they reapply within six calendar months from the execution date of these Terms of Settlement otherwise they will pay a maximum of two years' accrued subscriptions.
· That these Terms of Settlement shall be entered as the judgment of the Supreme Court in this suit.
Adefisayo Awogbade, Msc, FCTI
The Registrar/Chief Executive
Chartered Institute of Taxation of Nigeria
5th Floor, Tax Professionals’ House
Plot 16, Otunba Jobi Fele Way, Alausa, Ikeja
We recall the position of the Institute of Chartered Accountants of Nigeria on the matter as published on the ICA website:
How ICAN/CITN Settlement Affects Members’ Right to Practice Taxation.
Recently the Association of Professional Bodies of Nigeria (APBN) brokered an out of court settlement of the rift between the Institute of Chartered Accountants of Nigeria (ICAN) and the Chartered Institute of Taxation of Nigeria (CITN) over who is authorized to regulate taxation practice in the country. APBN moderated a mediation process which led to the signing of a Terms of Settlement (ToS) and subsequently the withdrawal of the case at the Supreme Court. The ToS was signed by President of ICAN Mr. Chidi Onyeukwu Ajaegbu, and CITN President Chief (Dr) Mark Anthony Dike on behalf of their respective Institutes on March 10, in Lagos.
Highlights of the Reconciliation
1. ICAN will rescind its earlier directive or resolution barring its members from joining CITN. This means ICAN members are now free to join CITN.
2. All members of ICAN who hold the licence to practice are to be granted direct membership of CITN, with full rights to practise taxation by completing CITN membership form only.
3. Members of ICAN without licence to practise, who desire to practise taxation are to be granted direct membership of CITN with full rights to practise taxation after fulfilling membership requirements but such candidates need to apply for and obtain CITN practice licence as applicable to other members before they can practise taxation provided such ICAN members do not need to sit for qualifying examination as a condition.
4. Those who resigned their membership of CITN on the directive of ICAN, should make a written application for reinstatement to their old membership status and pay the subscription for 2015 only if they apply within six calendar months from the execution of the terms of settlement, otherwise they will pay a maximum of two years’ accrued subscriptions.
5. The Terms of Settlement has already been entered as the Judgment of the Supreme Court in the Suit (No. SC/492/2013) and the case now formally closed at the apex Court.
Significance of the Settlement
ICAN members who so desire can practice taxation, but they should get a practice licence from CITN without writing any examination.