Corporate Taxation Laws In Nigeria: A Review
Keywords:
Corporate, Taxation, Laws, CasesAbstract
It is a general knowledge that the field of law of taxation is complex and highly technical. It requires clear perception of fiscal terms and concepts as well as strict application of myriad of rules allowing various deductions and exemptions. Some of these concepts connote something more than what is commonly understood by the terms under non-tax statutes by the tax payers. Surprisingly, some of these terms are either not defined at all by the corporation tax laws or they are incomprehensively defined posing more confusion than clarification. Therefore, this study aimed at reviewing some basic concepts under corporate tax laws in Nigeria. Based on the findings of this study, it was suggested that a reconciliation of two enactments thus the CAMA and CITA to a policy of charging tax on profit rather than charging on turnover be given immediate attention.
References
(1897) A.C. 22
Section 9, Companies Income Tax Act, (CITA) Cap C 21,, Laws of Federation of Nigeria (LFN),
Ibid, Section 19
Sweeny C.A et al-Revenue Law in Australia, Butterworths, Durban, 1975 p. 187.
See Wington F8 Lecture Series No 1 for Review of Economic Literature; See also Reamonn- The
Philosophy of Corporate Taxation (1971) quoted in John Tiley-Revenue Law, Butterworths,
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See Report of Richads on Committee on Turnover Taxation, 1964 also quoted in John Tiley op. cit
(fn 5) p. 623.
Cap C. 20 LFN 2004.
Companies and Allied Matters Act, (CAMA), Cap C20, LFN 2004, Section 54.
CITA,Cap C21, LFN, 2004, Section 13 (1)
Tiley J. -Revenue Law, Butterworths, London, 2000, p. 622.
Bryan A. Garner - Black's Law Dictionary, 8th edition, West Publishing Co., USA, 2004, p. 1500.
Cap P 8, LFN, 2004, Section 12, See also Tiley J. op.cit (fn 10)
Ibid.
Abdulrazaq M. T__ Nigerian Revenue Law, Matthouse Press Ltd, Lagos, 2005, p. 28.
Tiley, J. op.cit (fn. 10)
CAMA, Cap 20, LFN, 2004, Section 54.
Ibid
Ibid, Sections 56 and 59.
Cap C21, LFN, 2004
See also Petroleum Profits Tax Act, Cap P 13, LFN, 2004, Section 2.
Companies Income Tax Act, 2004, Sections 40 (4), 47, 29 (10).
CAMA, Section 55
CITA, Section 13 (2).
CITA, Section 105 and Petroleum Profit Tax Act (PPTA,), Cap LFN, 2004, Section 2.
Nigerian Tax Reform in 2003 and Beyond- The Main Report of the Study Group on the Nigerian
Tax System 2003, p 266.
CITA, Section 23(b), op. cit.(fn 2)
Second Schedule, Parts I & II of the 1999 Constitution
CITA, Section 106
Ibid, Section 13 (1)
Ibid, Sections 11, 29 (10) and 106
CITA, Section 29 (10)
Ibid, section 13 (2) (a)
Ibid, Section 13 (2) (b)
Ibid, Section 13 (2) (c)
Ibid, Section 13 (2) (d)
Ibid, Section 14 (1)
Ibid, Section 15
Ibid, Section 16 (1)
Ibid, Section 16 (1) (b)
See the proviso to Section 16 (1) (b) CITA, 2004
Ibid. See also Arogundade J. A__ Nigerian Income Tax & Its International Dimension, Spectrum
Books Ltd, Ibadan, 2005, pp303-304 and Ola C.S__ Incorporated Tax Law for corporate
and Unincorporated Bodies in Nigeria, Heinemann Educational Books (Nig) Ltd,
Ibadan p237
Cap C21, LFN, 2004
Colten Iron Company Vs Black (1881) 6 AC 315
CITA, Section 16 (1)(a)
Ibid, Section 16 (1) (c)
No 11 of 2007
Cap P8, LFN, 2004
Arogundade J. A op.cit (fn 41) p31
CITA, 2004, Section 10
Cap C21, LFN, 2004
Cap P13, LFN, 2004
8th Edition, 2004, P1246
Ibid, p1246
The New Webster's Dictionary of the English Language, International Edition, 1993, p1064
CITA, 2004, Section 30
Nigerian Tax Reform in 2003 & Beyond op.cit p174(fn 25)
Toby R.A __ The Theory and Practice of Income Tax, Sweet & Maxwell, London, 1978 p36
Ibid. See also Mayson S.W __ Revenue Law, Blackstone Press Ltd, London, 1980, pp34-35
CAMA, Cap 20, LFN, 2004, Sections 56-59
IRC Vs. Lysaght (1927) 13 TC 511
Per Lord Warrington in Levene Vs IRC (1929) AC, 217, p232
Abdulrazaq M. T. op.cit. (fn 14) p169, See also Anthony Sumption__ Taxation of Overseas Incomes
and Gains, Butterworths, London, 1973 pp2-18
Toby R. A op.cit (fn 56) p36
CITA, op.cit (fn 19), Section 13(2)
Article 5, Double Taxation Relief (Between the Federal Republic of Nigeria and Government of
the Kingdom of Belgium) Order 15 of 1997 (hereinafter referred to as Nigerian Double
TaxationAgreement, DTA for short)
Ibid.
Arogundade J. A op.cit (fn 41) p32
(1976) APP/COMM/228 quoted in and culled from Arogundade J. A op.cit pp52-54
(1942) TC 453
(1932) 24 C.L.R (Australia) pp601-602
(2004) 3 NWLR (pt 859) 46 @ 63 paras F-H.
Toby R.A op.cit (fn 57) p37
Ibid.
Arogundade J. A op.cit (fn 41) p426
Swedish Central Railway Co. Ltd. Vs Thompson (1925) A.C 495
Unit Construction Co. Ltd Vs Bullock (1960) A.C 351, Per Lord Radclif
Supra (fn 75)
Quoted in and culled from Mayson S.W op.cit (fn 58) p539
Agreement Between the Government of the Federal Republic of Nigeria and the Government of
the United Kingdom of Great Britain and Northern Ireland for the Avoidance of Double
Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital
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Economic Perspectives: An Economic Journal of the US Department of State Vol. 5, No 2, 2000,
p2 quoted in Linus Ali - Corporate Criminal Liability in Nigeria, Malthouse Press Ltd,
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The Economist, January 29, 2000, p10.
Bryan A. Garner__Black's Law Dictionary, op.cit (fn 11), p551
Ibid
See Para. 3.8.1 ante
See 'e-dividend payment' in Daily Trust, p38, Friday, March 28, 2008
PITA 2004, Section 71(2); See also CITA, 2004, Section 82
Also known as electronic cash, electronic currency, digital money, digital cash or digital currency
The science or study of analyzing and deciphering codes using secret symbols
"http:// en. Wikipedia.org/wiki/Electronic Money",30th June, 2009 Note further that by on-line it
means it is connected to a computer or internet; while off-line means it is concerned with a
part of a computer system not connected to the central processing unit but controlled by
a computer storage device.
Ibid
A Nevis Corporation
www.e-gold.com , 30th June, 2009
Ibid
Ibid
Ibid
Arogundade, J. A op.cit (fn 41) p34
Grainger & Sons Vs Gough (1896) A.C 325
Macpherson & Co. Vs Moore (1926) 6 TC 107
Wilcock Vs Pinto & Co. (1925) 9 TC 111
(1971) N.M.L.R 339
Now Section 9, CITA, 2004
Goldface-Irokalibe I. J - Law of Banking in Nigeria ,Malthouse Press Ltd, Lagos, 2007, p 203
Ibid, pp 204-205
Arogundade, J.A op.cit, (fn 41), p 54
This is a system whereby a tax payer accesses himself.
This is a system whereby a tax payer is called upon to file tax returns and the tax office would
make assessments to be served on him.
No. 13 of 2007 (hereinafter referred to as FIRS Act 2007)
Ibid Section 8 (1)(k)