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CITN Clarifies Nexus between eNaira and Taxation

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The Chartered Institute of Taxation of Nigeria, CITN has shed more light on transactions effected via eNaira and how they are affected by taxation.

The institute gave the clarification at a business luncheon held in Lagos recently.

The luncheon themed, “Digital Currency Technology and E-Naira: Nature and Implications for Taxation”, had experts from taxation field, government agencies and regulators gave a raw break down of the new e-Naira, its workings and implications for taxation.

In his address, Chairman of CITN ICT Committee, Samuel Okoye, noted that eNaira, like the physical naira, is a measure of value, medium of exchange, unit of account and store of value that does not give rise to any form of taxable profit, gain, chargeable income or any tax base in itself as a currency or legal tender.

He however said that eNaira would have administrative tax implications as means of payment of tax liability or obligations.

He explained further that the tax law required that taxes be assessed and/or paid in the currency of transaction.

He said, “This is either the Naira or the exact foreign currency of transaction. eNaira is the same Naira but in the digital form. Tax consequences of transactions executed using the eNaira will certainly be paid in Naira”

He called for synergy between the Federal and State Inland Revenue Service and the Central Bank of Nigeria.

He identified also the need for these agencies to take swift and proactive steps in intimating tax payers with implications of transacting on Central Bank digital currency.

Earlier, President of the Institute explained that a gathering of this nature was important to enable tax pundits deliberate, interact and discuss issues bordering on taxation and other national concerns.

“It is pertinent to inform you that the outcome of our deliberations will be articulated as a position paper to the government and relevant stakeholders as input to policies formulation.”

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