a. Discuss the structure of the tax administration system in Nigeria (4 Marks):
Nigeria’s tax administration system is structured across three levels of government: Federal, State, and Local Governments. Each level has specific responsibilities regarding tax collection and administration.

1. Federal Government:
   • The Federal Government administers and collects taxes through the Federal Inland Revenue Service (FIRS). It is responsible for taxes such as Companies Income Tax, Petroleum Profits Tax, Value Added Tax, and Capital Gains Tax.
2. State Government:
   • Each State Government is responsible for the administration and collection of taxes from taxable individuals and entities within the state, excluding those in the Nigerian Armed Forces and foreign missions. This is done through the State Internal Revenue Service (SIRS). Key taxes collected include Personal Income Tax and road taxes.
3. Local Government:
   • Local Governments are responsible for collecting various levies, such as shop and kiosk rates and motor park levies. These are administered through the Local Government Revenue Committee in each state.

b. Discuss the functions of any TWO organs of tax administration in Nigeria (8 Marks):

1. Federal Inland Revenue Service (FIRS):
   • Tax Collection: Responsible for the assessment, collection, and accounting of federal taxes.
   • Policy Implementation: Develops and implements policies related to tax administration and ensures compliance among taxpayers.
2. State Board of Internal Revenue Service (SBIRS):
   • Tax Collection and Management: Ensures effective collection of state taxes and penalties, overseeing all tax administration activities within the state.
   • Tax Policy Recommendations: Makes recommendations to the Joint Tax Board on tax policies, reforms, and legislation.

c. Explain the concerns by Nigerian taxpayers over multiple taxation and outline the causes and possible solutions of multiple taxation in Nigeria (8 Marks):
Concerns of Nigerian Taxpayers over Multiple Taxation:

• Tax Burden: Taxpayers express frustration over being taxed multiple times on the same income or transaction, leading to increased financial strain.
• Inconsistency in Tax Rates: Variations in tax rates imposed by different levels of government create confusion and can lead to unfair tax practices.
• Economic Inefficiency: Multiple taxation can deter investment and economic growth as it affects the overall business environment negatively.

Causes of Multiple Taxation in Nigeria:

1. Constitutional Rights of Local Governments: Local governments have the constitutional right to levy taxes, which can overlap with state and federal taxes.
2. Lack of Coordination: Poor coordination among federal, state, and local tax authorities leads to duplicate tax collection efforts.
3. Inadequate Tax Education: Many taxpayers are not adequately informed about their tax obligations and rights, resulting in confusion and compliance challenges.

Possible Solutions to Multiple Taxation in Nigeria:

1. Tax Harmonization: Streamlining and harmonizing tax laws and rates across different levels of government to eliminate overlap and reduce tax burden.
2. Taxpayer Education: Implementing robust taxpayer education programs to inform citizens about tax obligations and reduce confusion.
3. Improving Coordination: Establishing better communication and coordination mechanisms among tax authorities at all levels to prevent duplicative tax assessments.