Nigeria's federal system of government has experienced various challenges since its establishment in 1954. While the 1999 Constitution reaffirms Nigeria as a federation, its implementation often conflicts with the core principles of federalism, raising concerns about centralization and the erosion of state autonomy. This thesis focuses on the jurisdictional complexities surrounding the Uniform Personal Income Tax system, a critical issue in Nigeria's fiscal federalism. The distribution of financial resources among different tiers of government has historically been contentious, with taxation being a significant source of intergovernmental disputes. The research examines the exclusive legislative power of the federal government over personal income tax and its implications for state financial autonomy and economic development. It critically appraises the rationality of a uniform tax system in the context of Nigeria's federal structure and explores whether such uniformity can advance fiscal objectives. The study also considers the historical inefficiencies of tax administration and the issues of double taxation that existed before the introduction of uniform taxation in 1975. The findings aim to provide insights into whether the current system should be retained, modified, or restructured to enhance equitable development and economic growth. Recommendations include strategies for improving the Uniform Personal Income Tax system while balancing federal and state interests to foster harmonious intergovernmental relations and national development.
TABLE OF CONTENTS
DECLARATION i
CERTIFICATION ii
DEDICATION iii
ACKNOWLEDGEMENT iv-x
TABLE OF CASES xi-xii
TABLE OF STATUTES xii-xiv
ABBREVIATION xv
CHAPTER ONE
GENERAL INTRODUCTION
1:1 BACKGROUND INFORMATION 1
1:2 STATEMENT OF PROBLEM 5
1:3 OBJECTIVES OF RESEARCH 6
1:4 SCOPE OF RESEARCH 8
1:5 RESEARCH METHODOLOGY 10
1:6 JUSTIFICATION OF RESEARCH 13
1:7 LITERATURE REVIEW 16
CHAPTER TWO
PERSONAL INCOME TAX JURISDICTION
2:1 INTRODUCTION 24
2:3 AN EXAMINATION OF PERSONAL INCOME TAX JURISDICTION PERSONAL INCOME TAX AT THE
STATE LEVEL
2:5 PERSONAL INCOME TAX AT THE FEDERAL LEVEL
THE BALANCE BETWEEN THE STATES AND FEDERAL FISCAL AUTONOMY OVER PERSONAL
INCOME TAX 57
2:6 THE IMPACT OF FREEDOM OF TRADE AND
COMMERCE ON PERSONAL INCOME TAX. 75
CHAPTER THREE
APPRAISAL OF UNIFORM PERSONAL INCOME TAX
3:1 INTRODUCTION 87
3:2 ARGUMENTS AGAINST UNIFORM PERSONAL INCOME TAX 94
3:3 ARGUMENTS IN FAVOUR OF UNIFORM PERSONAL INCOME TAX 107
3:4 STATUTORY PROVISIONS ON UNIFORM PERSONAL INCOME TAX. 114
CHAPER FOUR
INSTRUMENTALITY OF GOVERNMENT ENFORCEMENT OF UNIFORM PERSONAL
INCOME TAX.
4:1 INTRODUCTION 130
4:2 THE INSTRUMENTALITY OF GOVERNMENT
ENFORCEMENT OF UNIFORM PERSONAL
INCOME TAX. 153
4:3 FUTURE PROSPECTS OF UNIFORM PERSONAL
INCOME TAX. 168
CHAPTER FIVE – SUMMARRY AND RECOMMENDATIONS
5:1 SUMMARY 176
5:2 RECOMMENDATIONS 178
5:3 CONCLUSIONS 182
BIBLIOGRAPHY
