What is Nigeria tax administration?

Nigeria operates a decentralized tax system where each level of government is independently responsible for the administration of taxes within its jurisdiction. Nigeria generate revenue to fund government expenditure through a pool of taxes from each tier of government.

What are the organs of tax administration in Nigeria?

In Nigeria tax administration is carried out by the three tiers of government, namely; the Federal Government, the thirty-six States of the Federation and the Federal Capital Territory and the various Local Governments, through the machineries set up by the respective government.

What are the problems of tax administration in Nigeria?

Therefore, the problems of tax administration in Nigeria are as stated below: Corruption, lack of adequate and qualified tax personnel, poor government supervision, lack of revenue court, lack of data management, multiplicity of taxes, non-remittance of PAYE deductions, and tax evasion and avoidance.

What is the role of tax administration?

The primary responsibility of a Tax Administration is to collect the proper amount of tax due to the government at the least possible cost to the public. In some cases, a Tax Administration may also be responsible for drafting tax legislation.

What are the problems of taxes?

Top 6 Tax Problems Faced by Taxpayers

Tax Problem	# of taxpayers annually
Unpaid taxes “I owe but I cannot pay”	As of 2019, 20.1 million owe and cannot pay
Nonfilers “I have not filed my required tax return”	10.6 million (individual only) 50.5 million business nonfilers

Why Nigerian are taxed?

Why do we pay taxes in Nigeria? In the smallest of nutshells, taxes are paid because the state or federal governments implement tax laws. Taxpayers’ money pays for government services of all kinds. Although taxes are considered as a legal requirement, paying taxes is also considered a civic duty.

Who is responsible for tax administration?

46,000 (2016–17 est.) The Income Tax Department (also referred to as IT Department or ITD) is a government agency undertaking direct tax collection of the Government of India. It functions under the Department of Revenue of the Ministry of Finance.

Why is taxation a problem?

Summary. The federal tax system is beset with problems: It does not raise sufficient revenue to finance government spending, it is complex, it creates outcomes that are unfair, and it retards economic efficiency.

Which is the body that administers tax in Nigeria?

The FIRS is the body statutorily empowered to administer and enforce the various tax laws in Nigeria at the federal level. The States’ Governments administer tax through the various State Boards of Internal Revenue, while the Local Government Revenue Committee of each State administers taxes at the local government areas.

What are the basic principles of taxation in Nigeria?

This tax is imposed on income of individuals (employees), corporate sole or body of individuals, communities, families or trustees or executors of any settlement as the case may be. It also covers taxation of sole traders, partnership assessment, and taxation of estates. PIT is regulated by the Personal Income Tax Act Cap P8 LFN 2004 (as amended).

What kind of tax do you pay in Nigeria?

It is regulated by the VAT Act and the VAT (Amended) Act 2007. Recently, the Federal Government of Nigeria has approved a 50% increase in VAT for supply of goods and services, from 5% to 7.5%. The new rate is schedule to take effect from 2020. Capital Gains Tax (CGT): This is a tax charged where there is a disposal of assets.

What is the rate of VAT in Nigeria?

The FIRS is vested with the power of administration and management of VAT in Nigeria. It is regulated by the VAT Act and the VAT (Amended) Act 2007. Recently, the Federal Government of Nigeria has approved a 50% increase in VAT for supply of goods and services, from 5% to 7.5%. The new rate is schedule to take effect from 2020.