THE OMBUDSMAN MECHANISM IN TAX DISPUTES: SAFEGUARDING TRANSPARENCY AND ACCOUNTABILITY

Abstract

The Ombudsman serves as an important institution to safeguard the system of tax administration and appeal. The core issue addressed in this paper is that Nigeria’s tax system, has the reputation of being intricately cumbersome, unfair and subject to abuse of power, all of which contribute to loss of public trust and compliance. This paper seeks to explore the potential contribution of the Ombudsman in ensuring transparency and accountability in tax disputes, comparing experiences from fiscal governance in some developed and developing countries with similar mechanism. The purpose is to appraise the relevance of the Ombudsman in the Nigeria’s tax system, determine the practical challenges of its application and suggest pathways to enhance the right of the taxpayers. The research method employed is doctrinal legal research, using statutory materials, case law, literature and comparative institutional analysis. The central thesis of the paper is that the introduction of an Ombudsman concept into Nigeria’s tax dispute resolution architecture will not only help improve on the accountability and fairness command of the current tax dispute settlement mechanism but will equally increase voluntary compliance and trust in the tax administration. Among other things, the paper concludes a strengthened and more efficient Ombudsman system is a necessary tool to harmonising state revenue concerns with taxpayer defence in the quest for sustainable fiscal justice and governance.