Preview

Principles of Taxation in Nigeria

Good Essays
Open Document
Open Document
14263 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Principles of Taxation in Nigeria
RGeneral Principles of Taxation

Fundamental Principles in Taxation

Taxation  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.  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  Taxes are the enforced proportional contributions from persons and property levied by the law-making body of the State by virtue of its sovereignty for the support of the government and all public needs. Essential elements of a tax 1. It is an enforced contribution. 2. It is generally payable in money. 3. It is proportionate in character. 4. It is levied on persons, property, or the exercise of a right or privilege. 5. It is levied by the State which has jurisdiction over the subject or object of taxation. 6. It is levied by the law-making body of the State. 7. It is levied for public purpose or purposes.

Purposes of taxation 1. Revenue or fiscal: The primary purpose of taxation on the part of the government is to provide funds or property with which to promote the general welfare and the protection of its citizens and to enable it to finance its multifarious activities. 2. Non-revenue or regulatory: Taxation may also be employed for purposes of regulation or control. a) Imposition of tariffs on imported goods to protect local industries. b) The adoption of progressively higher tax rates to

You May Also Find These Documents Helpful

  • Good Essays

    7. The purpose of the tax must be for “the common defense and general welfare.”…

    • 1343 Words
    • 6 Pages
    Good Essays
  • Good Essays

    A “tax can be defined as a payment to support the cost of government” (Jones, 2014). Taxes are implemented by our government to raise revenues for specific purposes. Our government implements local, state, and federal taxes. Each jurisdiction is subjected to the authority of the government above them.…

    • 768 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    6. Poll tax - is a uniformed tax levied on every adult in the community.…

    • 1870 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Legt2751 Notes for Midsem

    • 2002 Words
    • 9 Pages

    Taxes - compulsory, unrequited payments to general government. Collected for the provision of social & merit goods.…

    • 2002 Words
    • 9 Pages
    Good Essays
  • Good Essays

    The role of the Constitution in creating tax law is ultimate source of the power to tax. Current tax law is resulting from Sixteenth Amendment to the Constitution as passed by the Congress on July 12, 1909. The amendment stated: “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived without apportionment among the several States, and without regard to any census or…

    • 615 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Text Questions 2

    • 1031 Words
    • 3 Pages

    At the core, taxes are the mechanism by which a government is funded. Taxes pay for public…

    • 1031 Words
    • 3 Pages
    Powerful Essays
  • Satisfactory Essays

    Definition tax: enforced, involuntary contribution, required and determined by law, providing revenue for public and governmental purposes, no specific benefits…

    • 277 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Cafr – Budget Analysis

    • 628 Words
    • 3 Pages

    Governmental entities have the power to enforce collection of taxes, which serve as a large percentage of governmental revenue. The amount of taxes required to be paid is regulated by fiscal policy.…

    • 628 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Entrepreneurship 1

    • 1087 Words
    • 6 Pages

    A tax is a financial obligation that is mandatory by law for an individual to pay. The IRS is the Internal Revenue Service, where all taxes are gathered by a government organization.…

    • 1087 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    guide reading

    • 403 Words
    • 2 Pages

    Political principle: the imposition of taxes and the expenditure of tax proceeds are governmental functions.…

    • 403 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Taxation, imposition of compulsory levies on individuals or entities by governments. Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes as well.…

    • 993 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Individual Tax outline

    • 6640 Words
    • 33 Pages

    Payment required by a government upon income earned by individuals, businesses and other taxable entities that is unrelated to any specific benefit or service received from the government…

    • 6640 Words
    • 33 Pages
    Powerful Essays
  • Good Essays

    Taxes are what we pay to live in a civilized society that is democratic, offers opportunity, and has a huge…

    • 412 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Tax Case

    • 3084 Words
    • 13 Pages

    b) Whether or not the Legislature has the ancillary or incidental power to make provision for the levy and collection of such tax.…

    • 3084 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    General Principle of Taxation

    • 81384 Words
    • 326 Pages

    PART I – GENERAL PRINCIPLES TAXATION – power inherent in every sovereign State to impose a charge or burden upon persons, properties, or rights to raise revenues for the use and support of the government to enable it to discharge its appropriate functions SCOPE OF TAXATION TAXATION IS: Unlimited, Far-reaching, Plenary Comprehensive Supreme STAGES OF TAXATION: (LAP) 1. Levy 2. Assessment 3. Payment Basic Principles of a Sound Tax System 1. Fiscal Adequacy 2. Theoretical Justice 3. Administrative Feasibility INHERENT LIMITATIONS (SPING) 1) Situs or territoriality of taxation 2) Must be for a Public purpose • Test is whether proceeds will be used for something which is the duty of the State to provide. • Legislature is not required to adopt a policy of “all or none.” • Incidental benefit to individual does not defeat exemption 3) International comity • Property of a foreign State of government may not be taxed by another 4) Non-delegability of the taxing power • Contemplates power to QuickTime™ and a TIFF (Uncompressed) decompressor determine kind,thisobject, extent, are needed to see picture. amount, coverage, and situs of tax; • Distinguish from power to assess and collect • Exemptions: (a) presidential taxing powers; (b) local governments 5) Exemptions of Government agencies • Taking money from one pocket • to the other Applies only to entities exercising government functions (acta jure imperii)…

    • 81384 Words
    • 326 Pages
    Good Essays

Related Topics