CHAIRMAN of the Federal Inland Revenue Service (FIRS), Mrs. Ifueko Omoigui-Okauru has stressed the need to work on the existing tax laws especially in an area that deals with granting incentives that would promote Corporate Social Responsibility (CSR) among corporate organisations.

Speaking at the African CEO roundtable and conference on CSR, which held recently in Lagos, Okmoigui-Okauru said though the existing tax laws recognised certain voluntary activities carried out by companies as tax deductible, proposals had been made to expand bodies to whom donations could be made, provide reliefs for provision of employment and infrastructure, among others.

According to her, taxation remains a veritable tool that could be used to encourage and promote CSR if properly marshalled and considered with distinct objective in mind.

She said, “taxation must be linked to service delivery to serve as an effective tool for fostering CSR” adding that existing link between CSR and taxation must be made visible and broader to promote the further development of the venture in the country.

Expatiating on the topic: “Taxation, CSR and the Business Enterprise”, she said taxation and CSR were different sides of the same coin, birds of the same feather, but with the only difference of one being compulsory, and the other voluntary. Despite this difference, she said both were a demonstration of “social responsibility”.

Explaining further, she said while taxation “is the process of collecting taxes within a particular jurisdiction; CSR is “the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of lives of the workforce and their families as well as of the local community and society at large”.

Calling on companies to see CSR as their contribution to development of the nation, she said conscious effort should be made to imbibe the practice as part of their organisation’s culture.

“CSR is an integral part of companies’ obligations towards the community in which they operate. It is an effective tool for developing harmonious relations with government, communities, employees and improving brand recognition, loyalty. Taxes and CSR are both focused on development of the economy.

Omoigui-Okauru added that the government would also work on promoting sure culture among corporate organisations through the review of policies and decisions and establishment of regulatory framework to encourage robust  CSR practice without undermining tax compliance.

At the moment, she noted that there were regulations awaiting approval to expand list of bodies to whom deductible donations could be made; executive order awaiting approval to provide tax reliefs for   provision of employment and public infrastructure by companies, etc.

She also explained that the focus to bring this to bear would be on provision of tangibles like employment and infrastructure; effective reporting framework to avoid “cost padding”; recognition of companies with sustainable and impressive CSR practices, alongside impressive tax compliance history.