As the course of time unfolds, so is the Nigerian tax landscape. The overwhelming importance of taxation in our economy cannot be overstated. As a result, in order to have a fair and just tax system, an institutionalized and effective legal structure must first exist. The field of taxation has suffered abject ignorance from numerous writers overtime, thereby resulting to its predicament of limited available research work. It is past time that we divert our fading focus to this fresh field of taxes, since it contributes significantly to the survival of our economy.
Taxation law which falls within the scope of public law, encapsulates the body of rules under which a public authority has a claim on taxpayers, requiring them to transfer to the authority part of their income or property. The tax law of each nation is usually unique and peculiar to it. In other words the tax law is relative vis-à-vis place. The bitter truth is that no one likes paying taxes.
Oftentimes, people complain about paying too much of it or about other people that aren’t paying enough. However, we must wake up from our slumber and realize the important nature of this topic as it touches the lives of each and every one of us. Indeed, how we tax, who we tax determines the kind of society we become.
The Society can be likened to a Chameleon, as it changes it’s form and adapts to the human surroundings, experience and inner drive. People learn from history, adapt to technological advancements, and redefine their values as they encounter new ideas and challenges.
Furthermore, society is shaped by the diversity of its individuals. Each person brings unique experiences, perspectives, and aspirations, fostering an environment of constant exchange and reformation.
These interactions, coupled with globalization, where cultures and ideas merge more rapidly, accelerate the process of social evolution. Going further, the preceding model would be used to depict the Relevance of Taxation law.
In order to optimally appreciate the relevance of tax law, it is pertinent I relay a vivid and pragmatic scenario. The relevance of tax law in our evolving legal landscape can be depicted through the increasing percentage of small and medium businesses swarming the informal sector.
Take for example, before the enactment of the presumptive tax regulation {2015}, a freelance legal writer, Stephen, who earns his income through multiple platforms. Unlike traditional employees, Stephen doesn’t have an employer automatically withholding taxes. He is responsible for navigating the complex tax obligations like, reporting income from various sources etc.
Eventually, in 2015, when the then minister of finance Ngozi Okonjo Iweala adapted the economic model of presumptive taxation, it formally institutionalized the process of taxing the informal sector, thereby making taxation law evolve. Thereby, adapting to the changes in the society.
Bolstering our point further, The federal government by way of making it evident that Tax law relevance to our evolving legal landscape is like that of a Mother child relationship, on 2nd October 2024, released an official gazette of the deduction of tax at source withholding regulation.
The new rule is slated to become effective from 1st January . The Regulations includes the Value added Tax (Modification) 2024 Order or VMO 2024 which introduces notable amendments to the VAT Act. The modifications in the VMO 2024 are significantly focused on Nigeria’s ongoing efforts around energy transition and largely expands the list of goods and services exempted from VAT under the act.
Premised on the aforementioned, it is Crystal clear that the Relevance of Taxation law in today’s evolving legal landscape is colossal. However, I hope this write-up serves as a Clarion call to others to also invest their research skill into this field.
Great piece, bro.