International Journal of Research and Innovation in Social Science (IJRISS) | Volume II, Issue VI, June 2018 | ISSN 2454-6186

The Legal and Institutional Framework for Taxation in Nigeria: Some Aspects of Law, Policy and Practice

Adesanya Tolulope¹ & Oguntola Bukola²

¹L.LB, BSc, M.A (Laws), B.Laws; Acis (PhD In view)
Lecturer, Faculty of Law, Lead City University, Ibadan, Nigeria
²BSc, L.LB, Tax Consultant to the Oyo State Government, Nigeria

Abstract:-The tax system in Nigerian is a tripartite foundation that comprises of the tax policy, tax legislation and tax administration. Tax policy forms the basis for tax laws while tax administration is the implementation of the tax laws. A major challenge in Nigeria has been the scope and usage of tax which ought to be clear to the government and citizens at all times. In this study, we begin by explaining the concept and benefit of taxation. Furthermore we discussed the role of government and the obligation of citizens towards taxation. Consequently, we developed a conceptual model and discussed the practical implication for Nigeria.

I. INTRODUCTION

Anecdotally speaking, scholars within the social sciences and even the Humanities have had course to discuss taxation at one point in time. Although the word taxation is sometimes misconstrued as it is used interchangeably with levy or charge . Charges are directly related to the services given or rendered while taxation could be a function of capacity for determinable or undeterminable government usage, for the benefit of all citizens. Taxation could then be referred to as a compulsory contribution to the support of government, levied on persons or income commodities mostly at a fixed rate. Taxation is perhaps the oldest and most priceless tool employed by the government in generating revenue . In Nigeria, Taxation ranks next to petroleum in terms of revenue generation.

Tax imposition dates back to the pre-colonization era, but was visibly utilized for essential services like building of railway, roads and schools by the British colonialist.