The Process of Tax Appeals and Public Law Challenges to Tax Administration in Nigeria

Description

ABSTRACT

The Process of Tax Appeals and Public Law Challenges to Tax Administration in Nigeria

Isaiah Folarin Akano*

ABSTRACT
The endless discussions on the drive for revenue by the Government, especially through taxation, can never be overstretched in view of the pivotal role tax plays in the generation of revenue by the government. One of the major objectives and even characteristics of tax is the need to ensure equity and fairness not only amongst taxpayers of unequal economic status but also between the taxpayers on one hand and the tax authorities on the other hand. This no doubt highlights the need for an efficient and effective tax administration in Nigeria. It also indicates the need to put in place a system that will ensure checks and balances to curb the excesses of tax officials and thereby promote fairness in the system of tax administration. Over time, statutory provisions and judicial precedents have shown that actions of relevant tax authorities can be challenged, especially when such actions are unconstitutional and unlawful. This article, therefore, intends to have a critical look at the process of tax appeal and the available public law challenges to the system of tax administration in Nigeria.

Keywords: Tax, Assessment, Body of Appeal Commissioners, Tax Appeal Tribunal, Relevant Tax Authority, Value Added Tax.

INTRODUCTION
The process of tax appeal in Nigeria is evolving to put in place an appeal system wherein there will be a seamless, less complicated and time-efficient mechanism for the resolution of tax disputes. In the light of the peculiarity of our economy, especially with regard to the informal sector, the need to have a workable tax appeal system in Nigeria can never be over-emphasised. The system of taxation in Nigeria is peculiar, considering the complexities and intricacies of business operations in the informal sector. This fact was aptly captured in the dictum of Honourable Justice Mohammed Bello, JSC (as he then was) in the case of Aberuagba v A. G. Ogun State₁ where he was held thus:

In developed countries, where retail trade is carried on in departmental stores, supermarkets, drug stores and shops where all sales are accounted for and the business address registered, it is convenient and safe for any government to appoint retailers as its agents for collecting Sales Tax. Every penny collected will ordinarily reached the government. The position is entirely different in Nigeria. It is notorious facts that except in few departmental stores, shops and drug – stores, where accounts of Sales are kept, the bulk of the retail trade is carried on by swam of amorphous trades in the market place and their homes, on streets and high ways, under our bridges and trees. They do not keep account of their business dealings and they cannot be reached by any government.

* LL.B (Unilorin), BL.

1. [1985] NWLR (PT. 3) 395, 399; See also Dr. Olumide K. Obayemi, ‘ACTI – An Assessment of the
   Nigerian Tax Appeal Tribunal and the need for Speedier and more Efficient System’ 13.

THE GRAVITAS REVIEW OF BUSINESS & PROPERTY LAW Vol.16 No.1