A Critical Appraisal of the Components of Taxation in Nigeria and Proposals for Law Reforms

The validity of the tax here is related to the benefit Δ receives from access

Explain the argument over whether or not this should be considered a tax instead of

Use Tax: prevents avoidance of sales tax (same rate as sales tax- use or consumption of personal property)

According to vocabulary.com “Taxation refers to the practice of a government collecting money from its citizens to pay for public services”. Our country was practically founded because of differences on taxation. The Stamp Act, Townshend Revenue Act, and most famously the Tea Act of 1773, are a few examples given of the progressive start to the American Revolution. If we can fast forward to 1986, this is the year that President Reagan passed the Tax Reform Act of 1986. Needless to say, the main purpose of the Tax Reform Act was for simplicity. Simplicity in federal tax code than in the pervious generations of tax code, but since passed, I believe the Act has gone through several changes and has now made the federal tax codes a bit more complicated. An idea of the Fair Tax has come in to play as a new way to reform federal tax in the past 10 to 15 years to simplify current tax codes.

* The Act requires that any amount received based on production or use of property disposed must be included as property income

The Federal Inland Revenue Service (Establishment) Act 2007 establishes the Tax Appeal Tribunal to settle disputes arising from the operations of the Act, as well as the administration of the legislations listed in the First Schedule

3.1. The Seller and the Buyer both acknowledge the sufficiency of this consideration. In addition to the purchase price specified in this Agreement, the amount of any present or future sales, use, excise or similar tax applicable to the sale of the Goods will be paid by the Buyer, or alternatively, the Buyer will provide the Seller with tax exemption certificate acceptable to the applicable taxing authorities.

Taxation, the government acquisition of property from the individual has mixed support in any Western democratic system. To make its way into the good will of the majority, taxation has surrounded itself with doctrines of justification. No law which lacks public approval or acquiescence is enforceable, and to gain such support it must address itself to our sense of correctness. This is particularly necessary for statutes authorizing the taking of private property. Sometimes depicted as ‘theft’ by those who are subject to taxation, the accusation is commonly based on the sentiment what do I get from it? However, one chooses to live in a democratic welfare state and to take up the services society has to offer the individual; the argument

Though it may not be open to a State legislature to make provision for the recovery of an amount which is not a tax under Entry 54 of List II in a law made for that purpose, it would still be open to the legislature to provide for paying over all the amounts collected by way of tax by persons, even though they really are not exigible as tax, as part of the incidental and

AASB 112 accounts for Income Tax by acknowledging current and future tax liabilities as follows:

When the government gets involved and taxes goods and services, it raises revenue for the government, decreases the quantity of goods produced and consumed and therefore, both consumers and the producer of the good will pay, splitting the costs of the tax and leveling up with society’s.

Taxation systems are usually modeled in such a way that they take into consideration the social welfare of the citizens. The government and other policy makers have the responsibility of ensuring that the system takes into account the needs of the citizens. The bottom line is that taxation should foster equal distribution of resources. The rate of taxation is usually arrived at after several considerations have been made. The rates are not fixed as they depend on the various economic changes. The issue of how taxation should be distributed among the different economic classes is yet to be addressed.

I’ve summed up the introduction of Taxation to these slight words. Taxation is defined as a way that the government able to generate or collect revenue from the citizen of one’s nation through different sources. As what I’ve learned from Taxation course that there are two types of taxation, direct which are paid by the taxpayer directly to the government, and indirect which are collected by an intermediary (like a retail store) from the consumer. The intermediary who will file the tax return later and forward the amount of the money to the government with the return. This tax is applicable to organizations and individuals. In this reflection, I would like to highlight what I learned of business and individual taxation, the experience on working with a group for the project and what challenges I faced and how I was able to get past.

Tax according to C.S Ola is defined as: “non punitive yet compulsory levy on the income and properties of individuals and organizations by government and which it does not account for, the proceeds from the levy on trade the government uses to pursue the accomplishment of some social, economic and political objective in the interests of its citizens”

Nigeria is Africa’s leading producer of oil and the seventh largest producer of crude oil in the world, and equally endowed with other numerous natural resources. But rather than utilizing its resources for maximum development, the country is unfortunately bedevilled with how to efficiently and effectively distribute oil revenues in an equitable manner. The revenue allocation phenomenon in Nigeria is basically the issue of distribution of national (resources) revenue, mobilized by the central federal government. And as far as the revenue allocation debacle is concerned, the haggling is between those who bake the national cake (major contributors to national revenue) and those at the helm of affairs to allocate it. There