HD The Emoji Movie
Eps1 [16+] Sausage Party

CONTEMPORARY LOCAL AND INTERNATIONAL ISSUES AND CHALLENGES IN TAX ACCOUNTING

Only available on StudyMode
  • Download(s) : 158
  • Published : October 23, 2014
Open Document


Text Preview

CONTEMPORARY LOCAL AND INTERNATIONAL ISSUES AND CHALLENGES IN TAX ACCOUNTING SANNI AZEEZAT KEMI
06/66MA352
ODEDIRAN TAIWO HASSAN
13/68MS008
OLORUNDARE HADIZAT OLAJUMOKE
07/66MA115
BEING A SEMINAR PAPER SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, IN PARTIAL FULFILMENT FOR THE AWARD OF MASTER OF SCIENCE IN ACCOUNTING (M.Sc) COURSE
PROBLEMS IN TAXATION (ACC 664)
LECTURERS IN CHARGE
DR OLANIYI AND DR SANNI, M.JUNE, 2014.
INTRODUCTION
Tax is a compulsory levy imposed on a subject or upon his property by the government to provide security, social amenities and create conditions for the economic well-being of the society (Appah, 2004; Appah and Oyandonghan, 2011). Historically, the formation of accountable and effective states has been closely bound up with the emergence of taxation systems (Moore, 2007). Viewed in this light, the imposition and collection of taxes is simply one of the fundamental policy instruments used to achieve governmental social and economic goals. Thus taxation emerges as one of the most effective domestic tools that governments have direct control over to develop the resources needed to meet their social, economic, and political goals. There are five purposes for collecting revenue through taxes: to give government power to allocate resources; to enable government to provide/support social development; to stabilize the economy; to constitute and define the market place; and to encourage optimal economic growth(12). Tax reform is an ongoing process with tax policy makers and tax administrators continually adopting the tax systems to reflect changing economic, social and political circumstances in the economy. Therefore, the objective of this paper is to discuss the current issues and challenges affecting both the Nigerian and International Tax Accounting. CONTEMPORARY ISSUES AND CHALLENGES IN THE NIGERIAN TAX ACCOUNTING Tax System in Nigeria

The political, economic and social development of any country depends on the amount of revenue generated for the provision of infrastructure in that given country. However, one means of generating the amount of revenue for providing the needed infrastructure is through a well structured tax system. According to Azubike (2009), tax is a major player in every society of the world. The tax system is an opportunity for government to collect additional revenue needed in discharging its pressing obligations. A tax system offers itself as one of the most effective means of mobilizing a nation’s internal resources and it lends itself to creating an environment conducive to the promotion of economic growth. Nzotta (2007) argues that taxes constitute key sources of revenue to the federation account shared by the federal, state and local governments. The Nigeria tax system is basically structured as a tool for revenue generation. This is a legacy from the pre-independence government based on 1948 British tax laws and have been mainly static since enhancement. The Nigerian tax system is lopsided and dominated by oil revenue. Over the past two decades oil revenue has accounted for at least 70% of the revenue, thus indicating that traditional tax revenue has never assumed a strong role in the country’s management of fiscal policy. Taxation in Nigeria is enforced by the three-tiered tax structure between the federal, state, and local government each of which has different tax jurisdictions. (Odusola, 2006; Okauru 2011). Review, amendments and modifications to tax legislation are continuous, evolving with global best practices and in keeping with the local socio-economic realities. The review and amendment of tax legislation is in keeping with the formal tax amendment process as provided for in the Nigerian constitution. The following tax laws were amended in the respective years indicated hereunder: Companies Income Tax Act- 2007

Personal Income tax Act- 2011 (FIRS, 2012)
Tax reforms in Nigeria
The dependence on oil revenue by all tiers of government in Nigeria...