Principles of Taxation in Nigeria - 14253 Words

RGeneral Principles of Taxation Fundamental Principles in Taxation Taxation ï‚ · Taxation is the inherent power of the sovereign, exercised through the legislature, to impose burdens upon subjects and objects within its jurisdiction for the purpose of raising revenues to carry out the legitimate objects of government. ï‚ · It is also defined as the act of levying a tax, i.e. the process or means by which the sovereign, through its law-making body, raises income to defray the necessary expenses of government. It is a method of apportioning the cost of government among those who, in some measure, are privileged to enjoy its benefits and must therefore bear its burdens. Taxes ï‚ ·Ã¢â‚¬ ¦show more content†¦The oil industry is greatly imbued with public interest as it vitally affects the general welfare. Sumptuary purpose of taxation ï‚ · More popularly known as the non-revenue or regulatory purpose of taxation. While the primary purpose of taxation is to raise revenue for the support of the government, taxation is often employed as a devise for regulation by means of which certain effects or conditions envisioned by the government may be achieved. ï‚ · For example, government may provide tax incentives to protect and promote new and pioneer industries. The imposition of special duties, like dumping duty, marking duty, retaliatory duty, and countervailing duty, promote the non-revenue or sumptuary purpose of taxation. Theory and basis of taxation ï‚ · The power of taxation proceeds upon the theory that the existence of government is a necessity; that it cannot continue without means to pay its expenses; and that for these means, it has a right to compel all its citizens and property within its limits to contribute. ï‚ · The basis of taxation is found in the reciprocal duties of protection and support between the State and its inhabitants. In return for his contribution, the taxpayer rec eived benefits and protection from the government. This is the so-called â€Å"benefits received principle.† Life blood or necessity theory ï‚ · The life blood theory constitutesShow MoreRelatedTax Implications of E-Commerce in Nigeria4601 Words   |  19 PagesINTRODUCTION The development of any nation depends on the amount of revenue generated by the government for the provision of infrastructural facilities. One major source of generating this revenue is taxation. According to Azubike (2009), tax is a major source of government revenue all over the world, including Nigeria. Government use tax proceeds to render their traditional functions such as the provision public goods, maintenance of law and order, defense against external and internal aggression, regulationRead MoreTaxation as an Instrument of Economic Growth and Development in Nigeria13527 Words   |  55 Pages TAXATION AS AN INSTRUMENT OF ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA BY MOHAMMED NASIR MOHAMMED 08/02AC039 AUG, 2012 CERTIFICATION This research work has been read and approved as meeting the requirement for the award of Bachelor of Science (Hons.) degree in the Department of Accounting, College of Management sciences, Al-Hikmah University of Ilorin, Ilorin. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Mr. A.B Uthman Read MoreIntegrated Reporting Of Nigeri Where We Are Coming From1371 Words   |  6 PagesINTEGRATED REPORTING IN NIGERIA: WHERE WE ARE COMING FROM 4.1 PRACTICES PLAYERS Accounting principles as practiced in Nigeria has its origin in Britain due to the colonial influence and the early influence of accountants of Nigerian origin who were practising in the UK. These accountants were made a move to institutionalize accounting in Nigeria and therefore designed the framework of accounting practice based on their current inclination. Association of Accountants in Nigeria (AAN) [1] the progenitorRead MoreConcept Of Vat On Imported Services1819 Words   |  8 PagesConcept of VAT on Imported Services in Nigeria Introduction: Value Added Tax (VAT) is a consumption tax payable on the goods and service consumed by any person, whether government agencies, business organizations or individuals. 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It is also characterized by unnecessarily complex, distortionaryRead MoreIn Finance, Scholars Are Led By The Matter They Want To1076 Words   |  5 Pagesscholars debate about how the rich and the poor should be taxed (Christina Romer). Sometimes, finance scholars can agree to the principle, but debate to the way the principle should be applied. The adoption of the accounting standard principle (Bashir Mande) can illustrate that kind of debate. Some finance scholars believe that adoption of the standard accounting principle can improve the business in a country, while others recognize its importance but do not see it as a requirement for the improvementRead MoreAdvantages And Disadvantages Of The European Union1123 Words   |  5 Page sThe main advantages of trading blocs, Free trade within the bloc Knowing that they have free access to each other s markets, members are encouraged to specialise. This means that for UB, at the regional level, there is a wider application of the principle of comparative advantage. Market access and trade creation, easier access to each other’s markets means that trade between members is likely to increase. Trade creation exists when free trade enables high cost domestic producers to be replaced byRead MoreTax Evasion6406 Words   |  26 PagesasionTHE SOCIO-ECONOMIC PROBLEM OF TAX AVOIDANCE AND EVASION IN NIGERIA: AN OVERVIEW Dominic Asada LL.B. (Hons.) B.L, LL.M. Tax Avoidance and Evasion are some of the most perplexing problems facing the nation today. It is widely believed that there is a considerable difference between estimated revenue from taxation every year and what is actually collected. This disturbing aversion to taxation has some historical antecedents. Traditionally, there has always been a hostile response to the paymentRead MoreImc Advantages1679 Words   |  7 Pagesindices. SharÄ «`ah-compliant equities may also appeal to the global socially responsible investing (SRI) community, as well as environmental, social and corporate governance (ESG) investors, in view of similarities in their underlying values and principles; therefore, the market demand for these stocks is potentially much larger. Furthermore, the screening of stocks creates an additional positive effect for the Islamic financial institutions, as the prohibition of Riba (interest) would lead companiesRead MoreBritish Colonies And Its Impact On South Africa1938 Words   |  8 Pagesemployed a system call direct rule. The French rulers wanted to assimilate or incorporate the peoples of West Africa . The British however preferred a system called indirect rule and it was applied to many of their West African colonies including Nigeria and Ghana. It has proven to be detrimental to problems in Africa and can be linked to the political past of the British colonial government. The goal of this p aper is to expose the reasons for indirect rule in British colonies and the negative impact