The Fundamentals of Business Tax Planning Administration in Nigeria

Description

ABSTRACT

The Fundamentals of Business Tax Planning Administration in Nigeria

Ademola A Taiwo, * Adeyinka A Ilori, ** and Bukola Oyagigiri***

Taxation generally is a duty to the State by the citizens and corporate bodies. It is mandatory payment to the State by the individual and business organization regardless of their status, no exception unless the ones created by the enabling laws within a time frame. It must be added that, tax planning is a social phenomenon which has a rigid connection with human agencies. Moreover, the mechanism to curtail or reduce the tax burden and liability of payment of taxes to the barest minimum by seizing the opportunities created in the enabling laws and utilizing the incentives and allowable allowances are the main focus of this article. That is, the fundamentals of business tax planning in Nigeria among the business entities. Also the paper looks into the merits of this concept to the tax payers particularly the corporate bodies in other to minimize and reduce the burden of Business Income Tax payable on annual basis without degenerating into tax evasion and over exploiting the loopholes in the tax enabling laws to avoid the payment of taxes. As a result, the paper probes the concept of tax avoidance and tax evasion as distinguished from tax planning. In this paper, the researcher adopted the doctrinal system of collecting data as well as secondary method of collecting materials such as scholarly published books, journals, internet and online materials, magazines and daily newspapers that are very relevant to this article. The study underlines the concept, theories and objectives of tax planning as a whole. The paper recommends that a census of the tax population be carried out so as to know the taxable persons and corporations. As a result, the paper recommends that modern forms of publicity should be adopted in disseminating information on the change or modification of tax laws. Furthermore, the government should provide social amenities which will invariably improve voluntary compliance and also ensure that the tax authorities monitor the tax payers and their tax planning strategies to reduce the burden of tax payable so that it will not degenerate into tax avoidance and tax evasion and deny the tiers of government the expected revenue.

Keywords: Tax, Business Tax, Administration, Fundamentals, Planning, Avoidance.

INTRODUCTION
Tax is a cost that all corporations across the globe view as a significant cost. Hence, profitability will be greatly increased if tax is minimised. This is possible because like every other operational cost,

* BSc (Hons) Political Science (UDFU, Sokoto), LL.B (Hons) (UI, Ibadan), BL, MA (African Laws), LL.M (UI, Ibadan), ACIArb (UK), PhD. (Babcock University). Associate Professor; Jurisprudence and Public Law Department (JPL), School of Law and Security Studies (LSS), Babcock University, Ilisan Remo, Nigeria. E-mail: ta****@ba*****.ng.
** BSc, MSc, PhD (Mgt Acct), PhD (Fin Mgt), MCIArb. Research Fellow, School of Law and Security Studies, Babcock University, Ilisan-Remo, Nigeria.
*** Lecturer II, Jurisprudence and Public Law Department (JPL), School of Law and Security Studies (LSS), Babcock University, Ilisan Remo, Nigeria.

THE GRAVITAS REVIEW OF BUSINESS & PROPERTY LAW VOL.11 NO.3