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The suspense accounts created by agent banks that collect tax revenue for the government contribute to revenue leakages in the tax system, says Ifueko Omoigui-Okauru, chairman Joint Tax Board (JTB).
According to her, this revenue leakage results because it is not every time that these tax monies that are supposed to be paid into the revenue accounts are paid directly, these agent banks create suspense accounts before they are later moved to the revenue account.
Despite the underlying potentials, Nigeria has been unable to generate the level of tax revenue required to drive the vision of this present administration which amongst others is basically to diversify the dependence on oil revenue to grow the economy.
Omoigui-Okauru who spoke to Business Day at the first international tax conference organised in Abuja by the Joint Tax Board noted that so many leakage areas contribute to the below optimal level of tax revenue in Nigeria , and these leakage are “systemic problems”. “There are so many leakage areas but one major leakage area is the collecting agents,” she added.
Meanwhile, to check this menace, Okauru noted that the Federal Government will by next year ensure that all tax payments are done electronically. 
“We are so happy that the government by next year is moving to ensure that all payments are to be done electronically. That decision and announcement alone will tremendously improve our tax revenue. This is because once payments are automated, we have automatically moved our tax monies straight into our tax revenue account,” Okauru stated.
Another important issue she disclosed that affects the revenue level of this nation is that “most Nigerians are actually definitely abusing the tax system. These people collect tax without any intension to remit the tax revenue. Again, the more electronic we move, even at the retail stores, supermarkets, they will be tracked.” 
Integrity of the tax system is another factor which she noted is part of the contributing factors to the leakages in tax revenue.  “This is because, quite properly, even if our system is not automated, if one collects tax money, he should pay. He should not wait for someone to chase him to pay taxes” which ordinarily has been collected/or deducted at source.” 
“The fact that there is lack in the level of integrity that we need is also a leakage area. Though, the problem is a systemic one, but it also depends on you and I. We should all be another person’s watchdog. If you find where they are abusing such a system, please report it. That is where we can take action accordingly,” she stated.
Meanwhile, according to Chris Evans of Australian Tax Institute, taxes and tax systems are fundamental components of nation-building because taxes build capacity, legitimacy and consent.
“Administration is a key component of any tax system. Maximum taxpayer compliance is an essential objective. Tax administration in many developing countries is weak and characterised by extensive evasion, corruption and coercion. More research is needed.”
As a compliance strategy, Evans identified four broad strategies to include: creating a more effective tax administration, fostering voluntary compliance and enhancing taxpayer morale; strengthening and enforcing compliance; and tackling the ‘shadow economy’.