CHALLENGES OF REVENUE GENERATION IN NIGERIA: LEGAL PERSPECTIVE



TABLE OF CONTENTS
Title Page…………………………………………………………..       i
Certification ……………………………………………………….      ii
Dedication………………………………………………………….      iii
Acknowledgements………………………………………………..       iv
Table of contents……………………………………………………    v
Table of Cases……………………………………………………...      viii
Table of Statutes……………………………………………………     ix
Table of Abbreviations……………………………………………..     x
Abstract……………………………………………………………..     xi

CHAPTER ONE
GENERAL INTRODUCTION
1.1       Background of the Study…………………………………….    1
1.2       Statement of the Problem…………………………………..      3
1.3       Objective of the Study…………………………………..           4
1.4       scope of the Study……………………………………………   5
1.5       Significance of the Study…………………………………….   5
1.6       Limitation of the Study……………………………………….. 6

CHAPTER TWO
LITERATURE REVIEW
2.1       Taxation; meaning;……………………………………..                       
2.2       History of Taxation………………………………………          9
2.3       Origin of Taxation in Nigeria ……………………………         11
2.4       Nature of Taxation…………..`…………………………..          6
2.5       Taxing system, what is it? ………………………………           20
CHAPTER THREE
TAXATION POLICY IN NIGERIA

3.1       Methodology ……………………………………………….      32
3.2       Tax Jurisdiction in Nigeria…………………………………      40
3.3       Challenges of Taxation in Nigeria ………………………..       48
3.4       Current Taxation Reform in Nigeria………………………       52
3.5       Appraisal of Nigerian Taxing System…………………….        55
CHAPTER FOUR
MEETING THE CHALLENGES OF REVENUE GENERATION THROUGH INFORMATION TECHNOLOGY

4.1       Meaning of Information Communication Technology…….     59
4.2       Relevance of Information Communication
Technology to Taxation………………………………….....      60
4.3             Information Technology and Taxation in Nigeria ……….        64
4.4             The Challenges of Information Communication
Technology toward an improved Taxing System………..         66
CHAPTER FIVE
CONCLUSION
5.1       Observation………………………………………………….     70
5.2       Recommendation……………………………………………     72
5.3       Conclusion……………………………………………………   75
Bibliography…………………………………………………..  78

TABLE OF CASES
Agberuagba v. Attorney General O gun State (1985) INWLR (pt3) 395        
Anarawos timber trading company Ltd. NWLR (1969) all NLR 247
Etiosa Local Government v. Jegede (2007) NWLR (pt. 1045) 537    
Exclusive store Ltd v. Edo Board of internal Revenue (2005) all FWLR (pt249) 1827 C.A.         
Knight, Frank and Ruthley v. A.G Lagos State (1998) 7NWLR (pt. 556
Manufacturers Association of Nigeria v. A.G Lagos state (2004) All FWLR(pt 249)o1327 H.C
Mahtew v. Chicory Marketing Board (1938) 60 CLR 263
Mobile producing (Nig.) limited v. Tai local government council 2 ors (2004)10 NCLR 99
R. v. Berger (1908) 6CLR 41
S. A v. Regional Tax Board (1970) ANLR
United State v. Butler (1938) 60 CLR 263

TABLE OF STATUTES
Capital Gain Tax Act, 1990
Companies Income Tax Act, 1990
Constitution of Federal Republic of Nigeria
Federal Inland Revenue Service (establishment act no. 13 of 2007)
Income Tax Management Act, 1961
Personal Income Tax Act, 1990
Petroleum Income Tax Act, 1990
Stamp duty act, 1990
Tax and levies (Approved List for Collection) Act Cap T2 LFN 2004
Value Added Tax Act,1993

TABLE OF ABBREVIATIONS
CAC                -           Corporate Affairs Commissions
CFRN             -           Constitution Of The Federal Republic Of Nigeria
CITA               -           Company Income Tax Act
Citn                 -           Chartered Institute Of Nigeria 
EBSU              -           Ebonyi State University
FIRS                -           Federal Inland Revenue Service
ICT                  -           Information Communication Technology
IT                    -           Information Technology
LFN                -           Laws Of The Federation Of Nigeria
NWLR            -           Nigeria Weekly Law Report
SBIR               -           State Board Of Internal Revenue
PC                   -           Personal Computer
PITA               -           Personal Income Tax Act.

ABSTRACT
This research work titled; Challenges of Revenue Generation in Nigeria: Legal Perspective is born out of the desire to examine the problem associated with revenue generation in Nigeria and to proffer solution thereto. Revenue is the fulcrum of development in any state, for no state can effectively function and carry out its numerous duties to its citizenry without resources in the form of revenue. In Nigeria oil revenue seems to be the major source of revenue basically because others sources are not adequately harnessed effectively. How can we properly and adequately generate revenue from non oil sources especially in the area of taxation. What are the obstacle militating against adequate revenue generation. This and other related issues are discussed in this work. The method used in this research work, is basically doctrinal the researcher uses both primary and secondary academic materials. The researcher discovered administrative inefficiency, lack of adequate funding of the tax agencies, competition among others as part of the challenges militating against adequate funding of the revenue generation in Nigeria far-reaching solutions was also made which includes proper tax education, fight against corruption , use of I.C.T in tax administration etc.

CHAPTER ONE
GENERAL INTRODUCTION
1.1       Background of Study
            Revenue generation involves the gathering of resources for the benefit of the society Revenue generation in Nigeria faces with so many challenges. in which it occurs in a different ways, through crude oil Revenue and taxation to mention but a few.
            Crude oil plays an important place in revenue generation in Nigeria from the  for introduction of the removal of oil subsidy which generate a lot of controversies later it creates a challenge to Nigeria economy by boasting our developmental standard positively.
            Taxation plays strategic role in the survival and development of a Nigeria Nation.
            This has been experimented and proven by developed nations around the world as evident today. Tax system in developing countries, like those in more developed countries face both new challenges and new possibilities as a result of technological change. In developing countries, taxpayers and tax administration must cope with more difficult environments with fewer resources. The role of new technology in influencing the way a country’s tax system or particular taxes becomes an issue that needs urgent attention. The realization of this fact has triggered much interest, planning and restructuring in the area of developing taxation, especially in the developing economies, including Nigeria. Over the years, the federal government has been doing so much in revaluing, restructuring and reforming the Nigeria tax system with the primary objectives of making it the main source of revenue generation for the government as obtained in other developed countries. In achieving this fact, programs and initiative were put in place and executed, one of such was a study group commissioned in 2002 to among other things understudy the entire Revenue system identify challenges and coming up with recommendations on the way forward. According to their report1, it was recommended that the taxing system be reviewed.  
Among the issues discussed were the drafting of a national tax policy, taxation and federalism, tax incentives and tax administration. where the taxing system of a country is weak, its economy tends to be dysfunctional. This is why most nations have tried to align their tax systems with the growing trend, which is information communication technology. The world is now a global village and a lot of innovation has taken place. Nigeria needs to review some of its obsolete taxing system and embrace the taxing system of the 21st century.

1.2       Statement of the Problem
            Taxation plays a central part in a country’s Revenue system and in promoting economic growth. Through taxation, government ensures that resources in the society are distributed, while giving succour to the weak. The critical challenges before tax administration in the 21st century Nigeria is to advance the frontier of professional accountability and awareness of the general public on the imperatives and benefits of taxation in our personal and business lives with the use of electronic taxation. Unfortunately, in today Nigeria, the taxation system is nothing to write home about, the role and effect of taxation is not felt primarily because of poor administration. The taxing system in Nigeria is still very crude. The tax collection system is far from being organized even where compliance is voluntary, in most cases, the taxes collected or paid by the taxpayer amounts to underpayment due to the activities of corrupt revenue officials. More so, the bureaucratic bottleneck process involve in getting a tax clearance certificate is also a major challenge facing this country at this point in time. Identify critical tax administration challenges in the 21st century Nigeria and measures required to meet the challenges will not only guarantee improve revenue base for the country but also position the country properly to take full advantage offered by the new millennium.

1.3            Objective of the Study
            The primary objectives of this work is identifying the critical Revenue Generation challenges facing Nigeria with emphasis on the area of taxation and pinpointing measures required by tax authorities and practitioners to meet these challenges. More so, this long essay seeks to examine;
a.         Administration of tax in Nigeria
b.         The use of information communication technology in revenue generation

1.4       Scope of the Study
            The scope of this work will cover the administration and compliance in Nigeria by analyzing the lapses in the system over the years (1990-date). This research work shall also cover the impact of information communication technology to Revenue generation in Nigeria.

1.5       Significance of the Study
            There cannot be a better time to work on critical challenges of revenue generation than now. Especially with the growing tax consciously and the facts that information communication technology is a major innovation of the 21st century. More so, this research will be relevant to legal practitioners. Again, it will also serve as a reform material for a change in Nigeria Revenue system, as this work will suggest solution capable of improving the administration of tax in Nigeria.
            Further more, the project will be useful to interested and  independent body of researcher(s) who wish to conduct research in the similar field or wants to make a reappraisal of this topic. Also, educationist, academician, processionals and the social community at large will find this research work a relevant one and a source of reference for information in revenue generation system anywhere in Nigeria

1.6       Limitation of the Study
            In the course of writing this long essay, I encountered several difficulties ranging from the inaccessibility and inadequate resources materials, require for the fulfillment of this work. Furthermore, is the lack of relevant statistical report and inadequate figure about revenue in the various tiers of government in Nigeria. Again, the bureaucratic bottleneck of government parastatals also hinders the accessibility to requisite information. Above all is the combination of other academic work with writing this project, couple with the short time required to complete this research work.


1 Study Group on the “review of the Nigeria Tax System” inaugurated on august 6, 2002 by the then Minister of Finance Mallan Adamu Ciroma, www.nigeriatabook.com/index.pbpassessed on 17th of August. 2011.
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