The Nigerian Institute of Architects (NIA) has described as backward the decision by the Federal Inland Revenue Service (FIRS) to commence the use of the value of the property housing the offices of companies to generate figures that will be charged as Company Income Tax (CIT).
President of the NIA, Arc. Njoku Festus Adibe, condemned FIRS’s decision in an address he gave at the recently concluded 28th Archibuilt, an annual exhibition of latest trends, technologies, systems and policy issues in the building industry, which took place in Abuja.
NIA is the association of independent professional architects in Nigeria with the aim of fostering members’ welfare, among others.
“The result of this policy if implemented means goodbye to commissions for architects from such companies because a company will find it more profitable to operate in thatch houses than to build corporate headquarters,” Adibe said.
“In so many countries, having a property gives you a waiver to become a citizen. They use it to encourage foreign investment, but here in our country, we rather want to tax property. What are we doing to ourselves?
“There is no relationship between a corporate headquarters and tax. A company can have a corporate headquarters but wouldn’t have business for the next one or two years.”
He, therefore, called on the association of professionals in to intervene on the matter.