:: Taxes are the lifeblood of a government-Shell PDCN V Gov of Lagos. :: The government needs finance to perform its functions which includes amongst others; the provision of social security, amenities, safety and justice for all… it is only reasonable that the governed should contribute for their communal welfare. :: The law of taxation […]
EVOLUTION OF THE NIGERIAN TAX SYSTEM AND ITS PECULIAR FEATURES. :: Taxation has always existed in one form or the other in ancient societies. :: Poll taxes[1] were a major source of tax in ancient Egypt under the Ptolemaic Dynasty from 300 BC. :: Before the advent of colonialism, the various independent entities which now […]
THE TRIPARTITE PILLARS OF TAXATION. Every sound assessment of any issue in taxation is meant to be appraised from these three perspectives: tax policy, tax law and tax administration. CREDITS: PROFESSOR ABIOLA SANNI TAX POLICY: Policies are fundamental principles… the course of action which the government wishes to follow in ordering the tax regime. Countries […]
SOURCES OF TAX LAWS The Constitution: The constitution is the supreme law of the land and by Section 1(1 and 3) of the 1999 Constitution, inconsistencies are null to their extent of inconsistency. The Taxes and Levies (Approved List for Collection) Act which stipulates that its provisions are superior to the provisions of the constitution […]
STAKEHOLDERS OF TAXATION. :: This refers to those involved/concerned in the tax regime/system[1]. Stakeholders of taxation include: Tax Payers: Professor Abiola Sanni posits that these are the people that deserve to be listed first. The taxpayer is the person whom the compulsory tax liability falls upon. He is the person that pays the tax… The Legislature: […]
CONSTITUTIONAL FRAMEWORK. :: You may ask: why should tax be imposed on my property after Section 44(1) of the 1999 Constitution has frowned against compulsory acquisition of property? You should note that Section 44(2a) provides for some derogations… for the imposition and enforcement of tax, rate or any duty. We shall be looking at some […]
CLASSIFICATION/FORMS OF TAXATION IN NIGERIA. Tax Base (basis): Tax is not imposed in vacuum/vacuo. Tax base is the thing upon which the tax is imposed. Tangible or intangible. The list of taxable goods and services is not closed. The government can impose any form of tax subject to policy considerations and provisions of the Constitution. […]
Tax Planning: TAX EVASION AND AVOIDANCE. :: Nobody pays tax with a smile. :: In an attempt to reduce (or possibly escape) tax liability, the issues of tax evasion and avoidance arise. :: The dividing line between evasion and avoidance is thin[1]. :: The court in 7up Bottling Companhy Plc V LIRS noted that tax […]
INTERPRETATION OF TAX STATUTE :: Section 44 of the 1999 Constitution vests citizens with the right to own property, however, Section 44(2)(a), 45 and 24 allow for derogations in justified circumstances… tax being one. :: We have noted earlier that there can be no imposition of tax where it is not provided for in the […]
TAXATION POWERS. :: Just as it sounds, is the absolute authority of a sovereign government to compulsorily impose tax on persons, income and activities within its own territory. Subject (of course) to statutes, economic demands, political and policy considerations. :: At Common-law, taxation power was seen as inherent in the sovereignty of a state. The […]
TAXATION IN THE GUISE OF ADMINISTRATIVE CHARGES. :: We have noted earlier that there can be no taxation without representation. This representation is done through an enactment in a written law by the people’s representatives called Legislators-See the Bill of Rights Act 1688, S.A.Authority V Regional Tax Board This rule is necessary to prevent government’s […]
