Taxation in Nigeria - 2164 Words

TAXATION AND FISCAL REGULATIONS IN NIGERIA INTRODUCTION The Nigerian Tax System has undergone significant changes in recent times. The Tax Laws are being reviewed with the aim of repelling obsolete provisions and simplifying the main ones. Under current Nigerian law, taxation is enforced by the 3 tiers of Government, i.e. Federal, State, and Local Government with each having its sphere clearly spelt out in the Taxes and Levies (approved list for Collection) Decree, 1998. Of importance at this juncture however are tax regulations pertaining to investors both foreign and local. The importance of tax regulations cannot be over-emphasized, as most transactions with any Ministry, department, or government agency cannot be concluded without†¦show more content†¦Where however the taxpayer is a non-resident company or individual the tax will only be levied on the amount received or brought into Nigeria. Computation of capital gains tax is done by deducting from the sum received or receivable from the cost of acquisition to the person realizing the chargeable gain plus expenditure incurred on the improvement or expenses incidental to the realization of the asset. b. Value Added Tax (VAT) This was introduced by the VAT decree No. 2 of 1993, to replace the old sales tax. It is a consumption tax levied at each stage of the consumption chain, and is borne by the final consumer. It requires a taxable person upon registering with the Federal Board of Inland Revenue to charge and collect VAT at a flat rate of 5% of all invoiced amounts of taxable goods and services. VAT paid by a business on purchases is known as input tax, which is recovered from VAT charged on company’s sales, known as output tax. If output exceeds input in any particular month the excess is remitted to the Federal Board Of Inland Revenue (FBIR) but where input exceeds output the taxpayer is entitled to a refund of the excess from FBIR though in practice this is not always possible. A Taxpayer however has the option of recovering excess input from excess output of a subsequent period. It should be stated at this point that recoverable input is limited to VAT on goods importedShow MoreRelatedPrinciples of Taxation in Nigeria14253 Words   |  58 PagesRGeneral Principles of Taxation       Fundamental Principles in Taxation       Taxation    ï‚ ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Taxation is the inherent power of the sovereign, exercised through the legislature, to impose burdens upon subjects and objects within its jurisdiction for the purpose of raising revenues to carry out the legitimate objects of government.    ï‚ ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   It is also defined as the act of levying a tax, i.e. the process or means by which the sovereign, through its law-makingRead MoreTaxation as an Instrument of Economic Growth and Development in Nigeria13527 Words   |  55 Pages TAXATION AS AN INSTRUMENT OF ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA BY MOHAMMED NASIR MOHAMMED 08/02AC039 AUG, 2012 CERTIFICATION This research work has been read and approved as meeting the requirement for the award of Bachelor of Science (Hons.) degree in the Department of Accounting, College of Management sciences, Al-Hikmah University of Ilorin, Ilorin. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Mr. A.B Uthman Read MoreA Critical Appraisal of the Components of Taxation in Nigeria and Proposals for Law Reforms3020 Words   |  13 Pagesthis serves in crude terms to tell us what a tax is, it is however deficient in the sense that it does not reveal the purpose of taxation. We however find more scholarly definitions in decided cases. For instance, in MATTHEWS v. CHICORY MARKETING BOARD it was held that a tax is: A compulsory exertion of money by a public authority for public purposes, or taxation is raising money for the purpose of government by means of contribution of individual persons. In US v. BUTLER it was opinedRead MoreImpact of Industrial Development on Nigeria Stock Market1457 Words   |  6 PagesImpact of Industrial development on Nigeria stock market. The potentials of capital market in Nigeria as a catalyst to economic and industrial development cannot be over emphasized. The capital market as an internal part of a country’s financial system operates at the long end of the system to mobilize resources for long term development and growth. Basically, the capital market accelerates growth by providing ,relatively long term capital - debt and equity finance – for government and corporateRead MoreThe Impact of Tax Revenue on Economic Growth1418 Words   |  6 Pagesgenerated for the provision of infrastructure in that given country. However, one means of generating the amount of revenue for providing the needed infrastructure is through a well structured tax system (ogbona and ebimobewei, 2012). The vital role that taxation play in an economy cannot be overemphasized. Tax is a compulsory levy imposed by government or its agent on her citizens in order to raise revenue for the funding of economic activities. Nkoro and worlu, 2012 defined Tax as a fee charged or leviedRead MoreThe Negative Effects of Indirect Rule on Africans Essay1696 Words   |  7 Pagesall aspects of African administration. Despite this, there were numerous problems with indirect rule in both theory and in practice. Ultimately, indirect rule was hopelessly flawed. In 1922, F.D. Lugard, a colonial officer in Uganda and later Nigeria who came up with the idea of using indirect rule in Africa, published a book titled Dual Mandate in Tropical Africa. In it, he advocated leaving management of African colonies to Africans, subject to the laws of policies of the British colonial staffRead MoreTax Implications of E-Commerce in Nigeria4601 Words   |  19 PagesINTRODUCTION The development of any nation depends on the amount of revenue generated by the government for the provision of infrastructural facilities. One major source of generating this revenue is taxation. According to Azubike (2009), tax is a major source of government revenue all over the world, including Nigeria. Government use tax proceeds to render their traditional functions such as the provision public goods, maintenance of law and order, defense against external and internal aggression, regulationRead MoreThe Social Movements And Protests Of Africa1507 Words   |  7 PagesThe women became impatient after several days no positive negotiation, they sat outside the conference room blocking all doors and windows to prevent anyone from leaving the meeting hall until a positive resolution is reached just as the women in Nigeria marched to the chief palace, staying there for days until the arrested women were released. The fraction of Liberian Mass Action for Peace movement women made th e world see them as a political force against violence and against their government.Read MoreTax Policy in Nigeria2265 Words   |  10 Pagessystem is often a reflection of its communal values or the values of those in power. To create a system of taxation, a nation must make choices regarding the distribution of the tax burden-who will pay taxes and how much they will pay-and how the taxes collected will be spent. In Nigeria, the taxation system dates back to 1904 when the personal income tax was introduced in northern Nigeria before the unification of the country by the colonial masters. It was later implemented through the NativeRead MoreEssay on Resistance to Colonial Rule in Africa1041 Words   |  5 PagesBritish in Southern Africa had rising expenditure costs. The British method of indirect rule in their colonies, created by Frederick Lugard to leave existing government as it is, had far lower costs than the French method of direct rule. Nonetheless taxation stood as the universal method of keeping all colonies cheap and straightforwardly ran. African’s disgust with a white man telling them to pay for the white man’s endeavors had taken a toll. Protest of colonial rule threatened to endanger British