Effectiveness of tax administration in nigeria

VAIDS is also expected to curb the use of tax havens, discourage tax evasion, and tackle illicit financial flows. With the introduction of VAIDS, the government hopes to encourage voluntary disclosure of previously undisclosed assets and income and the payment of outstanding tax liabilities. When drafted carefully, voluntary disclosure programmes benefit everyone involved — taxpayers making the disclosure, compliant taxpayers, and governments.

Effectiveness of tax administration in nigeria

The main objective of the scheme — which commenced on July 1, and will last for a period of nine months — is to help expand the country's tax base.

VAIDS is also expected to curb the use of tax havens, discourage tax evasion, and tackle illicit financial flows. With the introduction of VAIDS, the government hopes to encourage voluntary disclosure of previously undisclosed assets and income and the payment of outstanding tax liabilities.

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When drafted carefully, voluntary disclosure programmes benefit everyone involved — taxpayers making the disclosure, compliant taxpayers, and governments. There's a greater level of political and social consciousness. Taxes are not only about boosting government revenues.

When people pay taxes, they hold the government to account more.

Impact Of Taxation On National Development

In developed countries, citizens pay their fair share of taxes and they have a say in the way their representatives in government manage government funds. Considering Nigeria's low tax-to-GDP ratio, and the fact that out of a taxable class of about 69 million people, only 14 million are currently in the tax net, the implementation of VAIDS could go a long way in increasing non-oil revenue.

Suffice to say, though, that there was a decline in non-oil collection from the N3. Nevertheless, this does not alter the main gist, which is the dismal performance of the non-oil sector in terms of generating revenue for the government.

EFFECTS OF INFORMATION TECHNOLOGY ON THE EFFICIENCY OF TAX ADMINISTRATION IN NIGERIA

Permanent and temporary disclosure schemes Voluntary disclosures regarding tax matters are not new in tax administration. Indeed, VDPs are widely used in developed countries, helping to enhance the effectiveness of their tax administration.

Voluntary disclosure programmes can generally be grouped into two categories, namely permanent or temporary programmes. The Canadian Voluntary Disclosures Program is a permanent programme. It gives individuals and companies a second chance to change a tax return that was previously filed or to file a return that should have been filed.

To be eligible, it must be voluntary. Should an individual or company be contacted by the Canada Revenue Agency before making the disclosure, it won't be considered voluntary.

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South Africa also operates a permanent VDP as part of its tax administration. However, a temporary VDP was introduced last year. It is meant for individuals and companies who have not, in the past, disclosed tax and exchange control defaults in relation to offshore assets.

In developed countries, there are benefits associated with voluntary disclosure, including reduced penalties and an allowance to negotiate for protection against criminal prosecution — in serious cases of default.

This study seeks to assess the effectiveness of value added tax administration so as to see whether value added tax has affected certain macroeconomic variables in . This study,EFFECTS OF INFORMATION TECHNOLOGY ON THE EFFICIENCY OF TAX ADMINISTRATION IN NIGERIA contains concise information that will serve as a framework or guide for your project work. This study seeks to assess the effectiveness of value added tax administration so as to see whether value added tax has affected certain macroeconomic variables in Nigeria.

In the case of VAIDS, some benefits to individuals and companies were also listed during the rollout, such as: However, for there to be institutionalization of voluntary disclosure in Nigeria's tax administration, there needs to be an enactment of a permanent VDP law by the National Assembly.

VDPs have been found to rake in significant funds for governments. The country's current tax administration is bogged down with several issues, ranging from lack of accurate data, duplicity of taxes and crude collection systems. These issues will need to be dealt with.

Effectiveness of tax administration in nigeria

In his book, The Wealth of Nations, published inScottish economist, Adam Smith, outlined the four principles or canons of a tax system: The time of payment, the manner of payment, the quantity to be paid, ought all to be clear and plain to the contributor, and to every other person.

Much of these principles are lacking in Nigeria's tax administration.Aug 15,  · Indeed, VDPs are widely used in developed countries, helping to enhance the effectiveness of their tax administration.

Voluntary disclosure programmes can generally be grouped into two categories, namely permanent or temporary programmes. study therefore, seeks to study how tax administration in Nigeria could affect the overall effectiveness of Lagos State revenue generation in relation to assessment, collection and remittance of tax.

The general objective of the study is to analyse and assess the tax system in Nigeria with emphasis on tax.

TIJ's Research Journal of Social Science & Management - RJSSM

In , by an ordinance personal income tax, in the modern and progressive form could said to have been introduced in Nigeria, even though the administration and collection of tax was still share between the British and the local authorities.

Personal income tax in Nigeria has remained the most unsatisfactorily, disappointing and problematic of all the taxes in Nigeria today. This is in spite of the fact that tax reform has of recent been a key element in economic reform which the country had undergone (Dominic, ).

Tax Administration. the tax system in Nigeria, initiativeblog.com Tax Administration and Revenue Generation of Lagos State Government, [email protected] Abstract The study examines the overall effectiveness of tax administration in relation to assessment, collection and remittance of tax in Lagos State, Nigeria Corporate tax.

This study seeks to assess the effectiveness of value added tax administration so as to see whether value added tax has affected certain macroeconomic variables in Nigeria.

VAIDS and the need for effective tax administration in Nigeria | Feyikogbon