Impact of multiple taxation on small and medium scale. It is disheartening to note that despite this division, problem of multiplicity of taxes still exists, for instance in the case of mobil producing nig limited v. A tax management is a tax professionals based in nigeria in providing tax services to both local and international businesses in nig. The vice president said that this is considerably low considering the fact that nigeria boast of very wealthy persons with choice properties within and. Jun 30, 2017 a personal tax of n20 million implies an income of n80 million a year with majority of them based in lagos state. Why doesnt lagos state tax my property im willing to pay by nobody. In line with global best practice in the use of technology and automated solutions, the lagos state internal revenue service has introduced recently an electronic revenue assurance system for. A lot happened in the tax space which was reflective of the drive by government at all levels to collect more tax revenue and to expand their tax bases. To ensure effective revenue collection, a tax administration unit has been created for the oil and gas free zone authority to interface between free zone enterprises and tax agencies in the country. Environmental taxes have many important advantages, such as environmental effectiveness, economic efficiency, the. Jan 01, 2005 impact of personal income tax on internally generated revenue performance in oyo state nassar, m. The article discusses, among other things, the residence of individuals and companies for tax purposes, branches and parent companies, income deemed to be derived from nigeria, the turnover basis of assessment, and relief from double taxation for individuals.
Oruade, kome, salient points about tax assessments in nigeria. They were likely to be mixed but majority were yoruba since they could understand the language. Osinbajo signs executive order to enforce tax collection. It is not novel as nigeria has embarked on series of tax reforms. Nigerian value added tax system and the concept of basic food article pdf available in ssrn electronic journal january 2016 with 7,568 reads how we measure reads. Branch operations or offices of foreign companies are not allowed in the country except in rare circumstances. A personal tax of n20 million implies an income of n80 million a year with majority of them based in lagos state. The tourist company of nigeria plc rc 3781 trading. The tourist company of nigeria plc rc 3781 trading as the. This paper estimates the incidence of corporate taxes on wages using a 20year. A foreign entity intending to do business in nigeria is required by the companies and allied matters act cama to incorporate a nigerian company for that purpose. Only 914 people pay between n10m and n20m tax every year in. Impact of tax administration on government revenue in a.
Oshodi, lagos state, nigeria reclaiming a cr itical junctu r. Why doesnt lagos state tax my property im willing to pay. The resulting economic loss and and threat to human welfare prompted the lagos state government to intervene and embark on the restoration of oshodi. Sanni tasks lagos on multiple taxation the guardian nigeria. Nigerias tax framework and its implications for businesses. The nexans nigeria enewsletter september 2011 edition nexans kabelmetal nigeria nexans to supply eko towers fibre optics backbone nexans kabelmetal nig. The fiscal code sets out the basic rules on how a tax is determined, to whom the tax applies, and when the tax is to be paid. Nigeria, like other nations, has rules and regulations governing the operation of corporate entities in the country. However, indirect taxes are levied on goods and services e. Some taxes are payable to the federal government and administered by federal inland revenue service, some are payable to the state governments and some to local governments.
In nigeria, all persons in employment, individuals in business, non residents who derive income from nigeria as well as companies that operate in nigeria are liable to pay tax. According to social class, prevalence of ari was higher in low social class in class iii. Tai local government council and 2 ors, 9 the issue of multiplicity of taxes was raised where the local government made a bye law for the collection of tax on education and youth empowerment, government, local government sticker. Tax administration self assessment regulations 2011. Caselaw demystifies and shapes these statutes so that they are easier to understand and implement.
This article examines the laws on the taxation of nonresidents in nigeria which may, at times, result in the double taxation of income. Pdf nigerian value added tax system and the concept of. The political economy of revenue allocation in nigeria does not compliment tax efforts. We operate more efficiently by making strategic partnerships. Click here for specific instructions regarding opening and using any of our pdf fill in forms, if you are a. Gordon 2010 argued that corporate and personal income taxes create distortion.
Some countries tax system is structured purely towards revenue generation and that has negative effect on the economy. Why doesnt lagos state tax my property im willing to pay by theone2 m. How to calculate your taxes using paye nairametrics. Obayemi looking at this discourse in the aftermath of lagos board of internal revenue v. It should be noted that a good tax policy should sets out the fundamental objectives of a countrys tax system and prescribe some guidelines that would shape the governments policy actions. The technical committee on the nigerian national tax policy has announced that the draft document of the tax policy is to be submitted to the federal executive council for approval before the end of the year 2008. B hons introduction prior to the advent of the white man in nigeria, nigerians cheerfully paid taxes in kind by rendering free services such as clearing the bush, digging pit toilets, wells.
What you need to be aware of by taiwo oyedele on december 12, 2011 the management board of the federal inland revenue service the board in exercise of the powers conferred on it by section 61 of the federal inland revenue service. An assessment of revenue generation drive of lagos state. If you want to buy a cow which is a very common item to purchase, you use cash. How to calculate your taxes in nigeriaoctober 3, 2011in financial literacy. It has been five years 20112016 since the bill was signed into law by the current minister. The concept of quid pro quo applies to every facet of lifetaxation inclusive. This follows many years of agitation for the personal income tax law in nigeria to be brought in line with presentday economic realities. Tax assessment in nigeria is governed by the various tax statutes. New national tax policy approved in late december 08. Introduction the president of the federal republic of nigeria in line with national tax policy signed into law the bill for an act to amend the provisions of the personal income tax act, cap. Income tax amendment act, 2011 a 111 for an act to amend the personal income tax act, cap. Pdf impact of personal income tax on internally generated. There is the challenge of multiplicity of taxes, which is a major problem with the nigeria tax system and laws.
Why doesnt lagos state tax my property im willing to. Withholding tax rate table nigeria companies individuals. Tax treatment of dividends nigerias tax appeal tribunal has decided that gas dividends are liable to withholding tax which, it is understood, was affirmed by the federal high court. For recent quantitative survey of this literature see heckemeyeroveresch 20. The information resource center is a referenceresearch library that provides comprehensive and authoritative information on the united states. Foia freedom of information act 2011 foic freedom of information coalition frc financial reporting council of nigeria frcn federal radio corporation of nigeria gifmis government integrated financial management information system gmou global memorandum of understanding hagf honourable attorney general of the federation. One of the recurrent problems of the threetier system in nigeria, a case study of uyo lga is dwindling revenue generation as characterized by annual budget deficits and insufficient funds for meaningful growth and viable projects development. The experiences gathered will enable the respondents be a better judge for this study. It is instead anchored on such factors as equality of states 40%, population 30%, land mass and terrain 10%, social development needs 10%. The bill titled the federal capital territory property tax bill, 2011 seeks to introduce a property tax payable on all real property situated in designated areas within the fct. Activities of nonnigerian companies, which would attract tax in nigeria and other special issues, are spelt out in the laws. Real estate fraud especially in lagos deeply hurt and affected over 500,000 victims last year and resulted in over n5 billion naira in losses traced to dubious real estate developers, unscrupulous agents, shady land or home sellers and deceitful omoonile customary landowners. Tax reform is simply the series of action taken by nigerias government to promote the tax system. The main forms of tax collected are direct and indirect taxes.
The government has reined in the excessive fiscal expansion of 2010. Impact of personal income tax on internally generated revenue performance in oyo state nassar, m. An average tax payer expects something of value in return from the government for taxes paid adebisi and. Oshodi, lagos state, nigeria reclaiming a cr itical. Nigeria 5 naira banknote, 2011, p38c, unc, polymer. Sanni tasks lagos on multiple taxation the guardian. As lagos state moves towards meeting the needs of a mega city, lirs continues to position itself as the major funding arm of the state government by putting in place structures that will ensure collection of the proper amount of tax revenue at the least cost. Apr 12, 2018 in nigeria today the issue of corruption is a major clog of the efficiency of tax collection in most part of the country especially in the ikorodu part of lagos state in nigeria.
Tag archive for effect of tax morale on tax compliance. Only 914 people pay between n10m and n20m tax every year. For a complete listing of which tax is payable to which level or tier of government, please see taxes and levies approved list for collection act. New national tax policy approved in late december 08 nigeria.
Income tax is one of the major sources of revenue to all government. Embassy of the united states of america public affairs section, information resource center who we are. International journal of business and social science vol. Impact of tax administration on government revenue in a developing economy. Babatunde fowler, chief executive officer of the lagos state inland revenue service and executive chairman, lagos state board of internal revenue, explains why the state is the model in tax. Well, if your lifes circle revolves around lagos meaning you live and work in lagos, then you are certainly a lagosian. Harrison 2002 expoused that taxes as they are, will not achieved macro objective for the economic therefore requires a tax reengineering and reforms approaches. Lagos received n168 billion in 2012 from the federation account excluding derivation and excess crude payments. National journal of community medicine vol 2 issue 2 julysept 2011 page 257 43. The general government deficit including budgets, extrabudgetary funds, the fuel subsidy, and net accumulation in the excess crude account was reduced from an estimated 5. For the direct taxes, it is levied on individuals, and factors of productions e. Federal ministry of finance taxation bundesfinanzministerium. New national tax policy approved in late december 08 nigeria the technical committee on the nigerian national tax policy has announced that the draft document of the tax policy is to be submitted to the federal executive council for approval before the end of the year 2008.
Why the tax system in lagos is transparent vanguard news. P8 lfn 2004 and related matters connected therewith. Public disclosure authorized nigeria economic report. Outrageous advance rent demanded by landlords form tenants pre2011 tenancy law. Jul 26, 2016 the 2011 lagos tenancy law addressed three major issues according to rafiu bello in the punch law digest of thursday july 7, 2016 pg 37. Salary earners are mandated by law to pay tax under the paye scheme. Get free research paper on impact of multiple taxation on small and medium scale businesses in nigeria project topics and materials in nigeria. Professor of tax and fiscal matters, abiola sanni has called on lagos state government to urgently eradicate the issue of multiple taxation by sending bills to the house of assembly for passage. Examples are turnkey projects, allocation of income and expenditure between the foreign company and its branch in nigeria, transfer pricing etc. The first major amendment to the income tax law since 1979.
Plc is set to supply 8 kilometer fiber optic backbone for total hq building project in lagos. September 2011 edition of nexans nigeria enewsletter. High tax rate distort the demand and supply of labour hence productivity is impaired. Dec 29, 2015 the experiences gathered will enable the respondents be a better judge for this study. In nigeria, it is a factor to be reckoned with in federal governments budget the taxes so collected come back to the taxpayer in form of services. This is approved for students in accountancy, business, computer science, economics, engineering, arts. Plc is set to supply 8 kilometer fiber optic backbone for total hq building project in lagos, tagged eko towers. Broken down, the figures show that the state recorded n185. Lagos state government is doing enough to create awareness about the importance of paying taxes description frequency percentage valid percentage cumulative percentage a 10 22. The issue of tax according to allingham and sandmo 1972, in his research stated that corruption of the tax agency is still an issue, especially in developing. The effectiveness of any enabling law for any society can only be enhanced by periodic evaluation including the 2011 lagos tenancy law which was introduced by the tenancy bill in 2009 to the lagos state house of assembly.
The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. The personal income tax act, 2004 is now amended by the personal income tax amendment act, 2011. In nigeria today the issue of corruption is a major clog of the efficiency of tax collection in most part of the country especially in the ikorodu part of lagos state in nigeria. A look at the proposed property tax in the fct by taiwo oyedele property owners and tenants in the federal capital territory fct should brace up for more taxes if the proposed bill currently under consideration at the national assembly is anything to go by. According to osinbajo, 914 nigerians pay between n10m and n20m tax yearly and that of the 914 persons, 912 of them are residents of lagos state while the remaining two reside in ogun state. The lagos state government has said that new applicants for certificate of occupancy on properties would be issued the document within 90 days of payment. Lagos revenue agency to commence automated collection of. The tunisian revolution of 20102011 the report of the march 2011 delegation of attorneys to tunisia from national lawyers guild us, haldane society of socialist lawyers uk, and mazlumder turkey published. The federal government collects taxes through the federal board of inland revenue. More ari cases were seen in 45 years of age group 47. No fewer than 41 clauses, including amendments to cap. Royal court 10 ayodele oso street ilupeju, lagos 100252 nigeria 08060926746 phone 08033412508 fax assizes. The title of this work raises a question, and this authors humble answer is.
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