AN EXAMINATION OF TAX ADMINISTRATION AND ENFORCEMENT MECHANISMS UNDER THE FEDERAL INLAND REVENUE SERVICE ACT, 2007

ABSTRACT

From the inception of modern taxation in Nigeria in the first decade of the 20th century the problem of poor tax administration has been the cankerworms that militate against an optimum revenue generation which affect negatively the government ability to render essential services to the citizenry. With the above problems in mind, various reforms were initiated aimed at improving the standard of tax administration in order to ensure an improved revenue generation by the government. The first of such reform were the Native Revenue Proclamation of 1906 which systematized all pre-colonial taxes that existed in Northern Nigeria which was re-issued in 1914 and extended to the West and East in 1918 and 1927 respectively. Other reforms followed in 1943, 1958 (Income Tax Ordinance of 1958), 1961 (Companies Income Tax Act No 22 of 1961) and 1993 (Finance Miscellaneous Taxation Provision Act of 1993).The above reforms all aimed at improving the standard of tax administration in Nigeria. Major reform in the history of tax administration however came in 2007 with the granting of administrative and financial autonomy to the Federal Inland Revenue Service and establishment of more effective disputes settlement mechanisms within the system by the Federal Inland Revenue Service (Establishment) Act. 2007 (FIRS Act). The passage of FIRS Act, was an actualization of a longtime reform started a century and a year ago precisely in 1906. For the first time in the history of tax administration in Nigeria the FIRS by the 2007 Act were empowered with various administrative and enforcement mechanisms that allow a taxpayer to assess himself for tax and empowered the FIRS to enforce payment internally through various mechanisms such as Distrain, Surcharge, Substitution, and Surtax etc. It was in the light of these reforms that this researcher carried out a study of the new reform through the FIRS Act, and analyses the various administrative and enforcement mechanisms provided by the new Act (FIRS Act) and considered their efficiency and effectiveness in improving the standard of tax administration in Nigeria. The study however found that the Act contained an unnecessary and controversial policy of centralization of tax administration, a possible reduction of powers of various States Board of Internal Revenue and other gaps in the provisions of the Act and recommended solutions by way of amendments of some provisions of the Act. which the researcher believed if implemented will go a long way in ensuring an efficient tax administration regime of our dream.

CHAPTER ONE

GENERAL INTRODUCTION

       Background to the Study.

One instrument use as a key to unlocking the resources required for public investment and infrastructural growth is tax. The process of levying and collection of tax

i.e. taxation is a very complex and highly dynamic system with constant changes in the economic environment where it operates, hence the need to review from time to time the instruments regulating the levying, collection, administration and enforcement of tax.¹

In Nigeria, what added to the complexity of the system is the Federal character of the country. Under a Federal system like Nigeria, powers are shared between the central and state governments which also include power to impose or levy tax within the jurisdiction of the government concern. In Nigeria the power of levying and collection of taxes are shared between Federal and State governments², and therefore, administration of tax is made at two tiers of governments i.e. by the Federal Inland Revenue Services at Federal level and various States Board of Internal Revenue at State level³. This division occasionally brings about disagreement between the two tiers of government as to which government should collect what tax?⁴This of course affected the smooth running of the system in the country.

• FOOTNOTES
• 1The practice in most jurisdiction is that each budget in every fiscal year brings about changes in taxation policy
• 2This is contitutionally provided under part II Second Schedule to the 1999 Consititution
• 3This is without prejudice to the power of other tax collecting authorities like Nigerian Customs Service and Excise Board, Joint Tax Board etc but they are outside the scope of this research work
• 4This conflict manifested on the constitutionality of Value Added Tax and Sales Tax see AG Ogun State V Aberuogba (1985), NWLR (PT3) AG Fedaration vs Guardian News Papers Limited (1999), a NWLRPT618)

Another glaring problem in Nigerian tax system is the neglect by the successive governments of various sources of government revenue. And with the discovery of oil in 1970s, the Nigerian revenue base became dominated by oil revenue. The system was equally characterized by unnecessarily complex, distorted and largely in-equitable tax laws that has no practical application in the informal sector that dominated the economy. The whole system in the Nigerian taxation system as represented by mechanisms for administration and enforcement of tax was to say the least, inefficient and outdated.

Since the amount accrued to the government for its support depends largely on how efficient the machineries for administration and enforcement of taxes are, it was deemed necessary that the legal framework under which tax is levied and collected (administered) needs to be re-visited and made effective so as to be able to achieve its purpose. It was in a quest for this reform that in 2007, the National Assembly enacted the Federal Inland Revenue Services Act⁵ as a new legal regime for administration and enforcement of tax laws in Nigeria. The Federal Inland Revenue Service Act (hereinafter referred to as FIRS Act or the Act) established the Federal Inland Revenue Services (FIRS) and its Management Board (the Board) as autonomous bodies with power to administer and enforce tax laws in Nigeria⁶, while the Tax Appeal Tribunal (TAT) established under the Act⁷, is to operate as an adjudicating body within the system.Download Full Material-N5000

THE CONCEPT OF SOVEREIGNTY IN INTERNATIONAL LAW: ISSUES CHALLENGES AND LESSONS FOR NIGERIA

Abstract:

New trends and innovations in modern communications and commerce have dealt a great blow on the political boundaries of states otherwise referred to as Sovereignty. Sovereign equality presupposes that each state enjoys the rights inherent in full sovereignty. This seems to be the basic principle of international law equally recognized by the United Nations. Sovereignty is the central pillar of the contemporary international system. No wonder, within the United Nations (UN) itself, sovereignty is not regarded as an obstacle to the maintenance of peace or the protection of human dignity. The lowest common denominator envisaged by this opening paragraph is that sovereignty is the basic principle of relations between states thus promoting non intervention, sovereign equality, inviolability of frontiers and the possibility of peaceful change. There is no doubt that, while respect has been accorded independent states particularly in the area of non intervention in their domestic affairs, new issues have continued to emerge in international law and that is the area of human rights protection. Thus human rights has made a significant impact on international law. More recently, allegations of the possession of weapons of mass destruction, protection of democracy amongst others have variously been listed as grounds upon which the sovereignty of a state was tempered with. These new issues have no closed category and have variously threatened emerging states of its survival as this concept no longer possesses the limitations which it earlier had. More also civil unrest’s and factional fighting as in the case of Liberia, Sierra – Leone etc equally affected their sovereign status at the height of those crisis which necessitated the intervention of Economic Community of West African States Monitoring Group (ECOMOG) at that time led by Nigeria to stop the senseless killings in those countries. There exist several Literatures on international law dealing with this subject matter. Attempt however have been made to deal with this subject matter as well as to highlight the Nigerian experiment and the growing danger on the limitations accorded this concept. In view of the foregoing, an attempt has been made by this research work to highlight these problems and make recommendations by categorizing the thesis into seven chapters. Chapter one forms the introductory part of the thesis. It consists of the statement of the problem, scope of the research, aims and objectives, literature review, research methodology, organizational layout and finally justification as to the benefits of this research to the public. Chapter two basically touches on the concept of statehood. It begins with the definition of state as viewed from international law perspectives on the subject matter. It proceeds to evaluate the philosophies of the state and went further to identify the attributes of statehood premised on population, territory, government as well as capacity to enter into relations with other states. The chapter finally examines the doctrine of recognition of states as practiced by different entities. Chapter three, though closely connected with chapter two however moves further to examine the meaning and development of the concept of sovereignty. Other issues associated with sovereignty such as independence has equally been considered. This chapter further highlights the limits of independence by exposing such issues like science and technology, economics, politics, poverty as well as the role of International Monetary Fund (IMF), World Bank, Paris and London clubs of creditors in touching the independence of states. Chapter four, which is basically theoretical and represents the views of lawyers and academicians both from the West and their African counter parts examines the role of sovereignty in the contemporal world order. The chapter touches basically the doctrine and role of sovereignty, international instruments recognizing sovereignty, arguments in defence and against the usefulness of sovereignty. This theoretical component further highlights the problems in this field of research as viewed from different perspectives. Chapter five is based on the factors rendering the concept of sovereignty nugatory. Such diminishing issues which have continued to be check on the doctrine of sovereignty have been considered. Issues such as self-determination, intervention, human rights, International Humanitarian Law as well as states incapable of guaranteeing security, law and order have been highlighted. The treaty obligation of states as well as the numerous exceptions to the doctrine of non-intervention have equally been expoused. Chapter six brings us to the examination of state sovereignty, with special emphasis on Nigeria. Here, the 1st, 2nd, 3rd and 4th Republics were scrutinized. Further examined in this chapter are the military regimes of 1965 – 1979, the Nigerian civil War and the military regimes of 1983 – 1999. Other issues such as military coups and democracy in Nigeria as well as ECOMOGs intervention in Liberia and Sierra – Leone have been considered. These issues touch on several aspects of sovereignty as it affects Nigeria and other West African countries traumatized by civil unrests. Chapter seven concludes the thesis work by summarizing the major issues discussed in the previous chapters as well as raising observations and making recommendations on the subject matter.

ANALYSIS OF THE LEGAL AND INSTITUTIONAL FRAMEWORKS FOR THE PROTECTION OF INTELLECTUAL PROPERTY RIGHTS IN NIGERIA

ABSTRACT

The subject of intellectual property rights without doubt, has attained considerable universal prominence, especially in its ever growing significance to the core values of human enterprises. In today’s world, the subject of intellectual property rights is so central and dynamic that  it  is  the concern of many disciplines of law, technology, economics, health, culture, agriculture, environment, international relations, politics and more. Intellectual property has problems with political and socio- economic contents, for example, piracy, counterfeits and imitation. This  is  as  a  result  of advancement in technology touching on internet, digitalization through compact discs, industrial photocopiers and scanners. There are various numeric legal provisions, for example, Copyright Act, Trademark Act, Patent and Design Act which are supposed to deal with these problems.  But because  of the ever-changing development in science and technology, the laws are  always  behind developments or the enforcement mechanisms are weak.  Also  there  are  institutional  frameworks such as the Nigerian Copyright Commission, the National Office for Technology Acquisition and Promotion, the Customs and Excise, the Federal High Court, the Nigeria Police and so forth for the administration and  enforcement  of intellectual property in Nigeria.  At  the  international plane  such as Berne Convention for the Protection of Literary and Artistic Works, Paris Convention for the Protection of Industrial Property and Trade Related Aspect of Intellectual Property Rights (TRIPS) there are laws and conventions prohibiting offences touching  intellectual  property.  Despite  these legal and institutional frameworks, piracy of copyrighted materials, counterfeit or  imitation  of patented products still go on unabated in this country. That is, offences bordering on intellectual property such as piracy, imitation and counterfeiting are on the increase. Without legal  and  institutional protection, it is doubtful if any reasonable person would dissipate energy into creating intellectual property. This dissertation examined the legal  and  institutional  frameworks  for  protection of intellectual property rights in Nigeria, with the view to ascertaining their efficacy or otherwise for the protection of intellectual property rights. The need for the protection of intellectual property rights cannot be over-emphasized. Both legal and institutional protections  accorded  to various species of intellectual property do not only encourage the owners of such rights  to  engage their creative intellect in more creativity for the utility of the society, but it  also  serves  as  an  incentive to others that have creative minds to put their creative intellects into uses too. In analyzing  the laws and institutions doctrinal approach was used. The researcher visited some of the  institutions for the enforcement of intellectual property rights, such as Nigerian Copyright Commission, National Office for Technology Acquisition and Promotion, Trademarks and Patent and  Design Registry for first hand information on the subject matter. Information was also obtained through the institutions’ websites and other relevant sites on the internet. The works of other writers were  also  consulted.  Laws such as Copyright Act, Trademark Act, Case laws, for example, decisions of superior courts of records where relevant were used. The research found that there are  some  deficiencies  in  enforcement mechanism of institutional frameworks, for example, lack of unity of command of different agencies, for example, the Police, Copyright inspectors, Custom and Excise share failure in protecting intellectual property rights. It was further found that there  are  several  similarities  in powers and functions of agencies which create confusion, for instance the  role  of  copyright  inspectors and police in respect of copyright matters. Also noted was that trademarks, patent  and design do not have enforcement institutional framework like Nigerian Copyright Commission for Copyright. Another finding was the lack of expertise  of personnel,  inadequate manpower,  facilities for operation and poor funding of the institutions. It was recommended that by improving the legal regime, enforcing the existing laws and increasing public awareness, the government in concert with relevant public and private sectors can make significant contributions in realizing  its  goal  of protecting intellectual property rights in Nigeria. On the institutional cooperation it is recommended that the relevant agencies of government should build stronger cooperation and coordination for effective monitoring and enforcement of intellectual property rights.Download Full Material-N5000