Lagos received n168 billion in 2012 from the federation account excluding derivation and excess crude payments. 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. However, indirect taxes are levied on goods and services e. It has been five years 20112016 since the bill was signed into law by the current minister.
Examples are turnkey projects, allocation of income and expenditure between the foreign company and its branch in nigeria, transfer pricing etc. The political economy of revenue allocation in nigeria does not compliment tax efforts. The tourist company of nigeria plc rc 3781 trading as the. 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 resulting economic loss and and threat to human welfare prompted the lagos state government to intervene and embark on the restoration of oshodi. 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. Tag archive for effect of tax morale on tax compliance. The federal government collects taxes through the federal board of inland revenue. Nigerias tax framework and its implications for businesses. Gordon 2010 argued that corporate and personal income taxes create distortion. Oshodi, lagos state, nigeria reclaiming a cr itical. Tax reform is simply the series of action taken by nigerias government to promote the tax system. 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. The experiences gathered will enable the respondents be a better judge for this study.
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. How to calculate your taxes using paye nairametrics. 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. Caselaw demystifies and shapes these statutes so that they are easier to understand and implement. Environmental taxes have many important advantages, such as environmental effectiveness, economic efficiency, the. 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.
Osinbajo signs executive order to enforce tax collection. 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. Income tax is one of the major sources of revenue to all government. 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. 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. Branch operations or offices of foreign companies are not allowed in the country except in rare circumstances. Dec 29, 2015 the experiences gathered will enable the respondents be a better judge for this study. Public disclosure authorized nigeria economic report. 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. It is instead anchored on such factors as equality of states 40%, population 30%, land mass and terrain 10%, social development needs 10%.
Broken down, the figures show that the state recorded n185. If you want to buy a cow which is a very common item to purchase, you use cash. There is the challenge of multiplicity of taxes, which is a major problem with the nigeria tax system and laws. 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. No fewer than 41 clauses, including amendments to cap. Why doesnt lagos state tax my property im willing to pay by nobody.
A tax management is a tax professionals based in nigeria in providing tax services to both local and international businesses in nig. 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. 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. This paper estimates the incidence of corporate taxes on wages using a 20year. For recent quantitative survey of this literature see heckemeyeroveresch 20. The nexans nigeria enewsletter september 2011 edition nexans kabelmetal nigeria nexans to supply eko towers fibre optics backbone nexans kabelmetal nig.
Lagos revenue agency to commence automated collection of. The vice president said that this is considerably low considering the fact that nigeria boast of very wealthy persons with choice properties within and. The personal income tax act, 2004 is now amended by the personal income tax amendment act, 2011. Pdf impact of personal income tax on internally generated. Impact of tax administration on government revenue in a. The concept of quid pro quo applies to every facet of lifetaxation inclusive.
The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. It is not novel as nigeria has embarked on series of tax reforms. Plc is set to supply 8 kilometer fiber optic backbone for total hq building project in lagos, tagged eko towers. The first major amendment to the income tax law since 1979. 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. 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. National journal of community medicine vol 2 issue 2 julysept 2011 page 257 43. 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. Some countries tax system is structured purely towards revenue generation and that has negative effect on the economy. Impact of tax administration on government revenue in a developing economy. Salary earners are mandated by law to pay tax under the paye scheme. Pdf nigerian value added tax system and the concept of. 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.
Impact of multiple taxation on small and medium scale. Sanni tasks lagos on multiple taxation the guardian nigeria. Royal court 10 ayodele oso street ilupeju, lagos 100252 nigeria 08060926746 phone 08033412508 fax assizes. International journal of business and social science vol. The government has reined in the excessive fiscal expansion of 2010. 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. Jan 01, 2005 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. Oruade, kome, salient points about tax assessments in nigeria. Outrageous advance rent demanded by landlords form tenants pre2011 tenancy law.
Oshodi, lagos state, nigeria reclaiming a cr itical junctu r. Obayemi looking at this discourse in the aftermath of lagos board of internal revenue v. 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. 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. Withholding tax rate table nigeria companies individuals. High tax rate distort the demand and supply of labour hence productivity is impaired. 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. Nigeria, like other nations, has rules and regulations governing the operation of corporate entities in the country.
Get free research paper on impact of multiple taxation on small and medium scale businesses in nigeria project topics and materials in nigeria. Tax administration self assessment regulations 2011. 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. The title of this work raises a question, and this authors humble answer is. Embassy of the united states of america public affairs section, information resource center who we are. 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. Posted in the little things, tagged cash, central bank of nigeria, dependence, economy. The tourist company of nigeria plc rc 3781 trading. September 2011 edition of nexans nigeria enewsletter. Why doesnt lagos state tax my property im willing to pay by theone2 m. Sanni tasks lagos on multiple taxation the guardian. Why doesnt lagos state tax my property im willing to pay.
Plc is set to supply 8 kilometer fiber optic backbone for total hq building project in lagos. Nigeria 5 naira banknote, 2011, p38c, unc, polymer. The main forms of tax collected are direct and indirect taxes. This follows many years of agitation for the personal income tax law in nigeria to be brought in line with presentday economic realities. Activities of nonnigerian companies, which would attract tax in nigeria and other special issues, are spelt out in the laws. 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. New national tax policy approved in late december 08 nigeria. 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. Federal ministry of finance taxation bundesfinanzministerium. This is approved for students in accountancy, business, computer science, economics, engineering, arts.
Why the tax system in lagos is transparent vanguard news. The information resource center is a referenceresearch library that provides comprehensive and authoritative information on the united states. Harrison 2002 expoused that taxes as they are, will not achieved macro objective for the economic therefore requires a tax reengineering and reforms approaches. This article examines the laws on the taxation of nonresidents in nigeria which may, at times, result in the double taxation of income. Income tax amendment act, 2011 a 111 for an act to amend the personal income tax act, cap. A personal tax of n20 million implies an income of n80 million a year with majority of them based in lagos 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. Tax assessment in nigeria is governed by the various tax statutes.
Why doesnt lagos state tax my property im willing to. 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. New national tax policy approved in late december 08. 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. 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. More ari cases were seen in 45 years of age group 47. 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. 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. Only 914 people pay between n10m and n20m tax every year.
P8 lfn 2004 and related matters connected therewith. 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. For the direct taxes, it is levied on individuals, and factors of productions e. Impact of personal income tax on internally generated revenue performance in oyo state nassar, m. They were likely to be mixed but majority were yoruba since they could understand the language. 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. 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. 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. 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. 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.
866 931 372 14 1218 274 149 529 1281 887 1244 1379 191 1348 699 650 459 183 453 162 122 157 1001 480 213 1140 837 904 152