TAX – Nov 2023 – L2 – Q3b – Tax Administration and Enforcement

Explain the roles and responsibilities of government, taxpayers, and revenue agencies in Nigeria’s National Tax Policy.

Question

In line with the provisions of the revised National Tax Policy (NTP) in 2017, explain the roles and responsibilities of the following stakeholders:

i. The government (3 Marks)
ii. The taxpayers (3 Marks)
iii. Revenue agencies (3 Marks)

Answer

Roles and Responsibilities of the Government:
- Formulate tax policies, laws, and regulations to ensure effective and fair taxation.
- Provide adequate resources and infrastructure to support tax administration and enforcement.
- Promote tax compliance through public awareness and taxpayer education.
- Ensure transparency, accountability, and ethical conduct in tax administration.
- Provide an appeal mechanism to address taxpayer grievancesRoles and Responsibilities of Taxpayers:
  - Comply with tax laws by filing returns and paying taxes promptly.
  - Maintain accurate records of transactions to support tax declarations.
  - Cooperate with tax authorities in audits and investigations.
  - Uphold ethical conduct and avoid fraudulent practices in tax matters.
  - Engage in tax education and seek clarification on tax-related matters.
Roles and Responsibilities of Revenue Agencies:
- Enforce tax laws by assessing, collecting, and ensuring tax compliance.
- Administer tax incentives and exemptions as prescribed by law.
- Carry out tax audits and investigations to detect and deter tax evasion.
- Engage in public awareness and taxpayer education to improve compliance.
- Implement measures to prevent, detect, and address corruption within tax administration