Tax Administration in Nigeria: a Case Study of Federal Inland Revenue Service(Firs)

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Taxation is a dynamic subject which grows with the constant change in the economic environment in which it operates, hence the need to review the regulating instruments from time to time. Nigeria is governed by a federal system hence its fiscal operations also adhere to the same principle, a fact which has serious implications on how the tax system is managed. The country’s tax system is lopsided, and dominated by oil revenue. It is also characterized by unnecessarily complex, distortionary and largely inequitable taxation laws that have limited application in the informal sector that dominates the economy.
The primary objective of this paper is to prepare a case study on tax administration in Nigeria, with the specific
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 The Tax Management Act came into being in 1st of April 1961 which amended all other regional tax laws and brought them into conformity with the federal laws.
 The subsequent Finance/Miscellaneous Taxation Provisions/Decree of 1987 as amended by Decree of 1993 which created the Federal Inland Revenue Service (FIRS) as an operational arm of Federal Board of Internal Revenue (FBIR) in compliance with the recommendations of the study group on tax reforms and administration in Nigeria set up in 9th January 1991.

The Federal Board of Internal Revenue (FBIR) is a statutory body established by Section 1 Sub-section 1 of ITMA (Income Tax Management Act)a as amended by Personal Income tax Decree of 1993as the apex or highest tax authority in Nigeria.
The Nigerian Federal Inland Revenue Service, FIRS, was created in 1943. It was carved from the erstwhile Inland Revenue Department that covered what was then the Anglo ¬Phone West Africa (including Ghana, Gambia, Sierra Leone) during the colonial era.
Tax provides revenue to fund governance, ensures resource redistribution, streamlines consumption of certain goods and services, reduces inflation and generates employment.
The Federal Inland Revenue Service is constitutionally empowered to collect taxes.
In 1958, the Board of Inland Revenue was established under the Income Tax Ordinance of

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