A LEGAL EXAMINATION OF THE ROLE OF TAXATION IN REVENUE GENERATION AND ECONOMIC DEVELOPMENT IN NIGERIA

The bulk majority of the tax evasion and tax avoidance is caused by inadequate machineries and lack of skilled personal in administrative tax bodies as well as the legal framework upon which their relationship rest. This result in many problems of the tax collection in Nigeria. It is in this regard that the topic of this dissertation entitled "A Legal Examination of the Role of Taxation in Revenue Generation and Economic Development in Nigeria" was chosen. This study is to present, explore and analyze the nature and extent of tax legal provisions relating to the role of taxation in revenue generation and economic development in Nigeria. It will also present how they are maintained, practiced, adhered to and suggest some ways and means of improving the present state of affairs. The study is composed of five Chapters. Thus, Chapter one dealt with the General Introduction, Background, Statement of Problems, Aims and Objectives, Scope of the study, Significance of the study, Research Methodology, Literature Review and Organizational layout. Chapter two discussed on Examination of Taxing power in the Federal Republic of Nigeria under the 1999 Constitution of the Federal Republic of Nigeria (As amended), and the brief history of Income Taxation in Nigeria. Chapter three is the bedrock of the whole work that discussed the role of taxation in the economic development of Nigeria with its legal perspectives. Chapter four discussed on significance of Taxation in Nigeria; Nigerian Economic Situation and Tax as incentive for economic growth. Chapter five which is the last chapter discussed on Summery, Findings and Recommendations that my hopefully be help in solving the problems.

Title page                                                    i 

Declaration                                                  ii 

Certification                                                iii 

Dedication                                                   iv 

Acknowledgment                                           -          v 

Table of Cases                                                -          vi 

Table of Statutes                                                        vii 

List of Abbreviation                                       -          vii 

Table of Contents                                           -          x 

Abstract                                                       xiii 

1.1       Background of the Study                                  -          1

1.2       Statement of Problem                                     3

1.3       Aims and Objective of Study                                        4

1.4       Scope of the Study                                         5

1.5       Significance of the Study                                  -          6

1.6       Research Methodology                                     -          6

1.7       Literature Review                                           6

1.8       Organization Layout                                      11

2.1       Taxing powers of the Federal Republic of Nigeria under the 1999 Constitution of the

Federal Republic of Nigeria (As amended)                     -          13

2.2       Brief History of Income Taxation in Nigeria                               18

2.3       Definition of Tax                                            22

2.3.1    Definition of Income                                      23

2.3.2    Distinction between “Income” and “Capital”                              29

2.3.3    Definition of Income for Tax Purpose                             -          30

2.4       Purpose and Function of Taxation                                33

2.5       Imposition of Taxation in Nigeria                                 35

3.1       Income Tax and Revenue Generation in Nigeria                         42

3.2       Role of Taxation in the economic Development of Nigeria           -          45

3.3       Raising of Revenue for Government Services                             49

3.3.1    Recurrent Expenditure                                      -          49

3.3.2    Capital Expenditure                                       49

3.4       Distribution of Income                                      -          50

3.5       Economic Revitalization                                   -          54

4.1       Nigerian Economic situation                             -          56

4.2       Taxation as a tool for Economic Growth                         -          60

4.3       Tax as incentive for Economic Growth                           -          61

4.4       Effects of Fiscal Policies on Economic Development                    -          67

5.1       Summary                                            -          71

5.2       Findings                                              -          72

5.3       Recommendations                                          73

5.4       Conclusion                                         -          74