- 11 Marks
Question
a. Tax administration in Nigeria involves the practical interpretations and application of the tax laws. The bodies charged with the administration of tax in Nigeria are the Federal, State, and Local Governments. The tax authorities of these tiers of government derive their power from Federal laws.
i. State the composition of the Joint Tax Board. (3 Marks)
ii. Outline FOUR functions of the State Board of Internal Revenue. (3 Marks)
iii. State FIVE levies and taxes collectible by the Local Government Revenue Committee. (5 Marks)
Answer
- Composition of the Joint Tax Board (JTB):
- The JTB consists of:
- Executive Chairman of the Federal Inland Revenue Service as Chairman
- A representative from each state of the federation with experience in tax
- The Secretary, appointed ex officio by the Federal Civil Service Commission
- The Legal Adviser of the FIRS, who acts as the Legal Adviser to the JTB.
- The JTB consists of:
- Functions of the State Board of Internal Revenue (SBIR):
- Ensuring the effectiveness and optimal collection of all taxes and penalties due to the government under relevant laws
- Making recommendations to the JTB on tax policy, tax reform, tax legislation, tax treaties, and exemptions as required
- Appointing, promoting, transferring, and disciplining employees of the State Internal Revenue Service (SIRS)
- Managing efficient and lawful administration of the state’s tax matters.
- Levies and Taxes Collectible by Local Government Revenue Committee:
- Shops and kiosks rates
- Tenement rates
- On and off liquor licenses fees
- Slaughter slab fees
- Market taxes and levies (excluding any market where the state is involved)
- Motor park levies
- Domestic animal license fees
- Bicycle, truck, canoe, wheelbarrow, and cart fees
- Merriment and road closure fees
- Right of occupancy fees on lands in rural areas, excluding those collectible by the federal and state government.
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