Analytical Approach On Double Taxation In The Nigerian Tax Administration

ABSTRACT

Taxation in Nigeria is one of the major source of revenue for it an be said that it generates between 75% to 80% of Nigerian revenue. Taxation in Nigeria is however bedeviled with a lot of problem one of which is double taxation.

It is the practice in Nigeria for income tax to be imposed both on worldwide income derived by residents of Nigeria and on income derived by non-residents generated within the country. The effect of such a system is that income derived by a resident of Nigeria from a source in another country is subject to tax in both states and vice versa. This position clearly discourages foreign investments from trading in Nigeria.

The phenomenon of double taxation occurs frequently representing a difficult position for the foreign trade activity, hindering investments abroad. Double taxation is an obstacle to the development of economic relations between states, reducing the revenue of the international operations and their interest in making investment abroad.

This paper presents the main causes that determine double taxation in Nigerian Tax Administration, the challenges in the tax administration vis-à-vis double taxation and the double taxation agreements entered into with other countries.

TABLE OF CONTENTS

COVER PAGE……………………………………………………………………i

CERTIFICATION PAGE…………………………………………………………ii

ABSTRACT……………………………………………………………………...iii

DEDICATION……………………………………………………………………iv

ACKNOWLEDGEMENT………………………………………………………..v

TABLE OF CASES……………………………………………………………....vi

TABLE OF STATUTES…………………………………………………………vii

LIST OF ABBREVIATIONS…………………………………………………viii

TABLE OF CONTENTS……………………………………………………….....

CHAPTER 1

GENERAL INTRODUCTION

1.0.0: INRRODUCTION……………………………………………………......1-6

1.1.0: BACKGROUND TO THE STUDY…………………………………….7

1.2.0: OBJECTIVES OF THE STUDY………………………………………...7

1.3.0: FOCUS OF THE STUDY………………………………………………..8

1.4.0: SCOPE OF STUDY……………………………………………………...8

1.5.0: METHODOLOGY………………………………………………………8

1.6.0: LITERATURE REVIEW………………………………………………9-14

1.7.0: DEFINITION OF TERMS……………………………………………14-15

1.8.0: CONCLUSION……………………………………………………………15

CHAPTER 2

EXAMINING THE ISSUE OF TAXING POWERS IN NIGERIA

2.0.0: INTRODUCTION……………………………………………………16-17

2.1.0: WHAT IS TAXING POWERS?.........................................................17-18

2.1.1: TAX AND OTHER LEVIES VIS-À-VIS THE CATEGORIZATION OF TAX POWERS EXAMINED………………………19

2.1.2: THE FEDERAL TAXING POWER…………………………………19-21

2.1.3: THE STATE TAXING POWER………………………………………21-22

2.1.4: LOCAL GOVERNMENT TAXING POWER………………………..23-25

2.2.0: CONFLICTS IN THE TAXING POWERS……………………….....26-29

2.3.0: LEGISLATIVE REMEDIES ON THE ISSUE OF TAXING POWERS EXAMINED……………………………………………29-35

2.4.0: CONCLUSION………………………………………………………35-36

CHAPTER 3

DOUBLE TAXATION IN THE NIGERIAN TAX ADMINISTRATION

3.0.0: INTRODUCTION……………………………………………….......37-38

3.1.0: DEFINITION OF DOUBLE TAXATION…………………………....38-40

3.2.0: CAUSES OF DOUBLE TAXATION………………………………...40-44

3.3.0: EFFECTS OF DOUBLE TAXATION………………………………..44-46

3.4.0: CRIMINALITY IN TAXATION……………………………………...46-50

3.5.0: TAX EXEMPTIONS………………………………………………….50-52

3.6.0: CHALLENGES IN THE NIGERIAN TAX ADMINISTRATION VIS-À- VIS DOUBLE TAXATION…..................................52-53

3.7.0: CONCLUSION………………………………………………………53-54

CHAPTER 4

DOUBLE TAXATION AGREEMENT / RELIEFS

4.0.0: INTRODUCTION……………………………………………………55-57

4.1.0: SIGNIFICANT OF DOUBLE TAXATION AGREEMENTS EXAMINED...................................................................57-61

4.2.0: UNILATERAL DOUBLE TAXATION RELIEF………………….....61-62

4.3.0: THE LATEST IN TIME OF DOUBLE TAXATION AGREEMENTS IN NIGERIA………………………….....62-65

4.4.0: CONCLUSION……………………………………………………….....66

CHAPTER 5

GENERAL CONCLUSION

5.0.0: CONCLUSION…………………………………………………………67

5.1.0: RECOMMENDATIONS………………………………………………..68

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