Major stakeholders in the accounting profession yesterday rejected some contentious clauses in a bill seeking to amend the Institute of Chartered Accountants of Nigeria (ICAN) Act, 1965.
The stakeholders at a public hearing on the bill organised by House of Representatives Committee on Finance rejected Sections 21 and 28 which seeks to define tax practitioners as accountants and confer the power of regulating tax practice in the country on ICAN.
In his presentation, Legal Adviser to Chartered Institute of Taxation of Nigeria (CITN), Chukwuemeka Eze, said though they support amendment of ICAN Act, they however have reservations with the law defining tax practitioners as accountants and conferring the power of regulating tax practice in the country on ICAN.
He said allowing a second body to regulate tax practice in the country would be an aberration, adding that with section 28 of the proposed law providing that the Council of the institute shall be made up of 30 accountants, it showed that ICAN would be regulating both accounting and tax practitioners in the country.He said if the provisions were allowed to pass by the National Assembly, ANAN which is the second regulatory body for accounting practice in Nigeria would also want to regulate the practice of taxation in the country.
He added that CITN had been in court with ICAN over issues of regulations with the Supreme Court set to deliver judgment on the matter any moment from now, hence the House should step down consideration of the section 21 and 28 of the proposed law.Similarly, Chairman, Board of Trustees Association of Forensic Accounting Researchers (AFAN), Prof. Mohammed Maimuna was of the view that allowing provisions of Sections 21 and 28 would be injurious to the profession.
He said: “Since we have bodies pursuing this line of argument, they should be allowed to do that. The two sections should not be considered as they are injurious to the profession. A professional should have freedom to play within his field of expertise.”On his part, the Chief Executive Officer of Association of National Accountants of Nigeria (ANAN) Dr. Nurudeen Abdullahi objected to the proposed amendment contained in Clause 27 of the bill, which provides that, “the Principal Act is amended by inserting immediately after the new section 21, a new Section 22 that; this Act supersedes the provisions of any other Act, which purports to diminish, undermine, subjugate or otherwise superintend over the provisions of this Act.”
According to him, ANAN and ICAN are the two professional accountancy bodies recognised by law, hence the proposed amendment, if passed into law would be inimical, not only to ANAN, but to any other professional body, including future ones that may be statutorily recognised.
Earlier, while declaring the hearing open, the Speaker of the House, Hon. Femi Gbajabiamila said the public hearing was an effort to update and improve the statutory foundations of one of the country’s oldest and most important professional institutions.
He expressed optimism that the final version of the bill would be of the highest quality, fix existing problems and ultimately advance the best interests of Nigeria.In his opening remark, Deputy Chairman of Finance Committee, Hon. Saidu Abdullahi said amendment of the ICAN ACT 1965 was long overdue, saying it would address contemporary economic realities in Nigeria.
“The current amendment proposed by the House of Representatives permeates Sections 1, 2,3,4,6,8,11,12,14,15,16 and 18 of the Principal Act and the insertion of new Clauses 20 and 21 and more interpretation Clauses. The above are to address contemporary economic realities in Nigeria. The amendment of the Institute of Chartered Accountants of India in 2012 revolutionized the practice of the profession in India. As lawmakers we are committed to the discharge of this legislative assignment with dexterity, and professional expertise,” he added.
