5.1 Observation
Based
on a detailed and analytical study, the following observations were made.
1. There is a structural defect in the law governing taxation
in Nigeria.
for instances this can be seen in the multiplicity of taxation.
2. That I.C.T offers government significant new opportunities
to improve taxpayer’s service; and that those opportunities should be pursued.
3. That a very large parts of tax revenue are collected by
intermediaries. For example, employers are responsible for the collection of
wage tax; businesses for consumption taxes; financial institutions for taxes on
interest and royalties.
4. That I.C.T opens up new ways for tax authorities to
undertake the business of administering tax laws and collecting tax revenues
and new ways to interact with a wider community. For example, communication
between tax authorities and taxpayers can be revolutionized and access to
information can be enhanced to help taxpayers in complying with their tax
obligation; registration and filling requirements can be simplified, easier
quicker and more secured ways of paying taxes and of obtaining tax refunds will
be facilitated.
5. That there is a now challenge facing tax administrators, as
to what legislation to adopt, procedures and practices to overcome any
deficiencies which emerge as a result of new means of communication (I.C.T)
6. That is Nigeria,
tax authorities face the challenge of a wide spread tax evasion.
7. That the current tax reform in Nigeria is gradually impacting
positively on the psyche of Nigerians. However, a lot still needs to be done by
the governments to facilitate the realization of the objectives of the reform.
8. That effective taxing system through use of I.C.T is the
appropriate antidote for the current global economic downturn in Nigeria.
9. Our analysis has shown that there are administrative lags
ant lapses in the administration of taxes in Nigeria.
10. Finally, the research once again confirms the low quality of
the tax information system, which always hinders a comprehensive and objective
appraised of the performances of the Nigeria
tax information system, which always hinders a comprehensive and objective
appraised of the performances of the Nigeria tax system.
RECOMMENDATION
This
study no doubt revealed the inadequacy and inconsistency of the existing tax
system in Nigeria.
Institutionalizing reforms in the Nigeria taxing system in long
overdue. The potential of ICT in taxation is vast and its ability to promote a
truly global village is unparalleled. It is my view at this point that if the
following steps are taken, it will aid
the Nigerian taxing system in brining its best potentials.
(a) The revenue authorities should be made autonomous and funded
from retained taxes, which It collects. This will make them more responsible.
(b) There should be improved motivational incentives to be given
to tax officials to boost their morals and spur them into better
effectiveness’.
(c) The three tiers of government should limit themselves to the taxing
powers as enshrined in the 1999 constitution of the Federal Republic of Nigeria
(s amended). And that the Taxes and Levies (Approved List for collection0
should be interpreted subject to the constitution.
(d) Tax officials should go for training and seminars on modern
taxing techniques in administration.
It
is proposed that information technology and its advantage be embraced in
totality by the government especially with respect to tax administration. The
recent spread of the phenomenon of e-government has proved that tax evasion is
becoming increasingly difficult to perpetrate, where the majority of the
government affairs are conducted electronically. The rise in the ingenuity with
which tax evasion is carried out in Nigeria can be attributed to the fact that
taxpayers are still required to remit their taxes through paper and biro
methods, it is easier to hide under such an abundance of paper work as opposed
to an online system where each tax payer has an account. More so, the
introduction of tax consultant will show that professionals are better at
handling matter of tax administration than the regular government tax
officials. This is evidenced by the level of income they will generate in the
short period; if they were employed by the government as opposed to the low
yield that had always ensured from the tax officials. As such it would be of
immense benefit for this tax consultant to train our officials through
seminars, symposia and allied conferences to give a professional edge to the
work of the tax officials.
One
of the cardinal aims is to provide social or public infrastructure or amenities
to people for this reason, government in time past have fallen short of the
responsibilities. This has obviously made the populace loose faith in
government, and hence a disinterest in paying taxes to the same government,
which does not carter for their needs,. It is opined that an increase in the
continuous supply of amenities such as health care, water, roads, education,
e.t.c. will serve to encourage the citizenry and render their passion to
support government through payment of taxes.
The
legislative aim of government at all levels also has a part to play in soling
the problems to taxation in our nation. Government must therefore make sure
that it keeping up to date with the ever- changing realities of the 21st
century, it is responsive to changes in the society. In other words, our taxing
system and indeed statutes should be more flexible to reflect advancement along
the rest of the world.
Similarly,
there should be a functioning system for tax administrators e.g (FIRS). The
functioning system should ensure its financial independence, and empower it to
deliver on its expended responsibilities. The tax administrators should publish
its annual audited accounts, which should encourage transparency and
accountability. It is hope here that the minister of fiancé, will in exerting
his/her statutory powers of determining how the accounts of the various taxing
board be run, should be guided by global best practices.
CONCLUSION
Tax
collection, which is very necessary for the generation of revenue, has origin
from history itself. It is undoubtedly that no holistic appraisal can be
sufficient in taxation till kingdom come, due to the dynamic nature of the
society.
However;
taxing system and the new trend called I,.C.T have increasingly becoming
inseparable as commercials activities grows and expand both in scope of
operations and practicability. Given the amount of data needed to analyzed in
order to access and compute tax liabilities, it has become imperative that both
tax institution and companies, employ appropriate computer programs in-order to
facilitate tax planning and administration duties. A number of problems have
besieged the tax system in Nigeria
and have clogged it from operating effectively. The administration of h system
is reported to be 99% infective. Summarily, the problems of the Nigeria taxing
system can be ascribe mainly to its administration due to insufficient manpower
or staffing, inadequacy funding and lack of infrastructure to aid smooth
collection of taxes. Other problematic issues include corruption in the public
or civil service, ignorance on the part of the population of taxation as a
concept and it’s benefit as well as the issue of the sluggish nature of the
legislative arm of government at all levels to respond to pressing changes. The
methods of tax collection in Nigeria
are still very crude. The tax collection system is far from being organized for
instance there has been issues of who has the power to impose tax in a
particular area. In the case of Eti-osa local Government v. Jegede the court of
appeal held thus;
The
Eti-osa Local Government has the legislative power of their own to impose or
determine taxes and levies outside the enabling law which is of general
application and which was promulgated to check indiscriminate levels and taxes…
any attempts to cut outside the ambit of part III of the taxes and levies
(Approved list for collection) Decree N021 of 1998 will be futile. I therefore
hold that the respondent (Appellant in this case ) has no power to legislate
and demand whatever taxes and levies it deems outside the provisions of the
taxies and levies (Approved list of collection ) Decree no 21 of 1998.
Summarily,
taxation, which has been analyzed as a mandatory system of contributing funds
to the government to ease its capital and current expenditures will strive
better when information communication is used, and the taxpayer will pay its
tax promptly because the accountability of the system is not in doubt. The
problem militating against the ultimate effectiveness and efficiency of tax
authorities will be checkmated if the necessary recommendation made to ease
such problems are carried out. It is hope that the relevant parties involve in
taking action will follow this recommendation. Conclusively, tax administrators
need to continuously give attention to all the changing circumstances and
nature of taxation, so that eh stated corporate goal will be achieved in terms
of better productivity.
BIBLIOGRAPHY
Adam smith (1760): An inquiring into the nature and causes of
wealth of Nation.
Adesora S.M. (1995): Income Tax law, ands Administration in Nigeria (2nd edition) Longman,
publisher, Ibadan.
Ariwosola J.A. (1993): Personal Taxation in Nigeria CIT, (2nd
edition) Onibonye press Ibadan
Ola, C.S. (2001): Income Tax law and Practice in Nigeria, Ibadan: Heinemann Educational Books.
Ayua, I.A. (1996): The Nigeria
Tax Law, Spectrum Law Publisher Ibadan.
Ittah J.S. (2009): Principle of Nigeria
Taxation, a practical approach, JHL Nigeria Limited Lokoja, Nigeria.
Olmert, Michael (1995): Adventure in History: New York.
Parcard D. (1817): Principle of Political Economy and Taxation vol.
1 p.b in craffa (ed) 1951 Cambridge
University Press.
Thomas U. (1999): value added Tax as a means and services of
Revenue to Nigeria Economy,
Longman publisher, Ibadan,
Nigeria.
JOURNALS
AJBPCC (2010): Taxation
in Nigeria:
Matters Arising.
Jon. M. (1997): National Association Spring (Symposium, Arlington, virginal.)
INTERNET
Abubarkar Yusuf Mamud: “Tax Policy in Nigeria” (www.document.com)
URL http//www.buzzle.com.(assessed on 10th July, 2011)
Aberecht Solin (1890):
Mesopotamia [www.document] URL http://www.1902encyclopedia.com/d/Dar/Darius.
the great html (assessed on July, 10, 2011).
All African.com: Nigeria First
Bank Issue FIRS’s e-Tax card [www.document] URL http: all
African.com/stories/201004081015. html (visited 2011, July 17).
Yikipedia: ‘Type of Taxes in Nigeria’ [www.document] URL
http:// directory.nigeria.org/type-taxesand-value-in-nigeria.html (visited on
20th July, 2011.