TAXATION IN THE DIGITAL ERA: THE LEGAL EFFECTS OF TAXING SOCIAL MEDIA COMPANIES IN NIGERIA

Abstract

Digitalisation of the economy brings with it challenges and tax evasion loopholes that developing nations must grapple with in meeting up with the realities of the time. The Nigerian tax hemisphere is not exempt from the challenges which include but not limited to the unavailability of tax statistics, failure to prioritize tax efforts, poor tax administration, tax multiplicity, regulatory challenges, structural problems in the economy, unavailability of database of all individuals and companies that are taxable, amongst others. Using doctrinal research methodology, this paper examines the implications of taxing social media companies, the challenges involved and the strategies for improving taxation of social media companies in Nigeria.