Tax Implications of E-Commerce in Nigeria
ABSTRACT
This paper examines the Tax Implications of E-Commerce. The issue of e-commerce and its tax implications continues to receive a high level of attention because of the fast growth of e-commerce activities. In the emerging global economy, e-commerce has increasingly become a necessary component of business strategy and a strong catalyst for economic development. The integration of information and communications technology (ICT) in business has revolutionized relationships within organizations and those between and among organizations and individuals. Specifically, the use of ICT in business has enhanced productivity, encouraged greater customer participation, and enabled mass customization, besides reducing costs. Even before the advent of e-Commerce it was not always easy to determine where income arose and some under-developed countries are still battling with the problems of tax planning and administration. This paper examines the concept of e-commerce and its implication on tax planning and administration.
INTRODUCTION
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, regulation of trade and business to ensure social and economic justice.
With developments in the internet and Web-based technologies the distinction between the traditional markets and the global electronic market place such as business capital size among others are gradually narrowing down. The name of the game is strategic positioning, the ability of a company to determine emerging opportunities and utilize the
This paper examines the Tax Implications of E-Commerce. The issue of e-commerce and its tax implications continues to receive a high level of attention because of the fast growth of e-commerce activities. In the emerging global economy, e-commerce has increasingly become a necessary component of business strategy and a strong catalyst for economic development. The integration of information and communications technology (ICT) in business has revolutionized relationships within organizations and those between and among organizations and individuals. Specifically, the use of ICT in business has enhanced productivity, encouraged greater customer participation, and enabled mass customization, besides reducing costs. Even before the advent of e-Commerce it was not always easy to determine where income arose and some under-developed countries are still battling with the problems of tax planning and administration. This paper examines the concept of e-commerce and its implication on tax planning and administration.
INTRODUCTION
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, regulation of trade and business to ensure social and economic justice.
With developments in the internet and Web-based technologies the distinction between the traditional markets and the global electronic market place such as business capital size among others are gradually narrowing down. The name of the game is strategic positioning, the ability of a company to determine emerging opportunities and utilize the
References: Azubuike, J.U.B. (2009). “Challenges of Tax Authorities, Tax Payers in the Management of Tax reform Process” Accountant. Cassels Brock & Blackwell (2001) Tax Implications Of E- Chartered Institute of Taxation (CITN) (2001). Conference materials. Li, Jinyan (2003). “International Taxation in the Age of Electronic Commerce: A Comparative Study Paris, Roland (2001). “Globalization of Taxation? Electronic commerce and the transformation of the state”. Appah Ebimobowei (2010). “The problems of Government Tax Planning and Administration in Nigeria: A Critique”.