EXPLORING THE LEGAL FRAMEWORK OF COMPANY TAXATION IN NIGERIA: HISTORICAL CONTEXT, STAKEHOLDER ROLES, AND REVENUE IMPLICATIONS

Abstract

This study examines Nigeria's corporate taxation framework, focusing on the Companies Income Tax Act (CITA) and its historical evolution. It highlights CITA's pivotal role in shaping fiscal policy and addressing Nigeria's socio-economic needs through its amendments and development. Using a qualitative approach, the study reviews legal frameworks, policy documents, and literature to identify key stakeholders, including legislative bodies, tax authorities, and professional organisations. It underscores the Federal Inland Revenue Service's (FIRS) critical role in enforcing tax compliance, collecting revenue, assessing taxpayers, prosecuting defaulters, and issuing tax guidelines. The findings reveal significant challenges, such as corruption, inadequate resources, and low public awareness, which hinder effective tax administration. The study emphasises the need for inter-agency collaboration with entities like the Attorney General's Office and the Economic and Financial Crimes Commission (EFCC) to combat tax-related offences. Additionally, it highlights the role of professional organisations and tax consultants in promoting compliance and public awareness. Recommendations include public enlightenment campaigns and robust measures to curb tax evasion and fraud. The study concludes that collaboration among government agencies, professional bodies, and taxpayers is vital for strengthening Nigeria's tax system and fostering sustainable fiscal growth.