a. Tax Policy:

• Tax policy refers to the framework and guidelines that determine how taxes are assessed, collected, and utilized within a jurisdiction. It encompasses the government’s approach to taxation, including objectives, strategies, and principles aimed at achieving economic and social goals.
• Important aspects include promoting fairness in taxation, enhancing revenue generation, minimizing tax evasion, and encouraging investment through tax incentives.
• The policy also aims to ensure that the tax system is simple and transparent, fostering voluntary compliance among taxpayers.

b. Notable Tax Legislations:

• i. Personal Income Tax Act (PITA): Governs the taxation of individual incomes, including PAYE and direct taxation.
• ii. Companies Income Tax Act (CITA): Regulates the taxation of corporate entities and outlines compliance requirements.
• iii. Value Added Tax Act (VAT): Establishes the framework for VAT implementation, including rates and exemptions.
• iv. Capital Gains Tax Act: Addresses taxation on profits arising from the disposal of capital assets.
• v. Petroleum Profits Tax Act: Governs the taxation of profits from petroleum operations in Nigeria.

c. Bodies Charged with Tax Administration:

• i. Federal Inland Revenue Service (FIRS): Responsible for the assessment, collection, and enforcement of federal taxes.
• ii. State Internal Revenue Service (SIRS): Manages the collection of state taxes and promotes tax compliance at the state level.
• iii. Local Government Revenue Committee: Responsible for assessing and collecting local government taxes and levies.
• iv. Joint Tax Board: Facilitates collaboration among different tax authorities for effective tax administration.
• v. Joint State Revenue Committee: Coordinates tax efforts among state governments for consistency and efficiency in tax administration.