CHAPTER ONE
1.0 INTRODUCTION
This chapter aims at discussing the brief history of taxation and various sources of tax law and types of tax Acts promulgated by the Federal Government of Nigeria. Taxation can be defined as a compulsory levy by the government imposed on the incomes of individuals firms and corporate bodies. Emphasis will also be regained towards examining the different versions of tax authorities responsible for the tax laws and other relevant problem that confront its smooth operation and growth. Moreover the various tax laws or involved in the collection of taxes and to know their impact in the implement of taxes how they have contributed either negatively or positively in the course of their operation. These Regulatory bodies include the Federal Board of Inland Revenue (F.B.I.R) and the state Board of Inland Revenue (S.B.I.R) Tax objective and it classification principles concepts incidence e.t.c.
1.1BACKGROUND OF THE STUDY
Taxation system had been in operation from time immemorial dated back to the time of our forefather during which communities taxed each other as a result of the failure of their member to carry out their communal assignment such assignment such as bush clearing pit digging well e.t.c. all for the benefit of the community concerned. Failure to render, such service usually resulted in Seizure of property which might be reclaimed on payment of money. This practice continues until 1904 when late Lord Lugard introduced the first income tax into the system. With the emergence of the Native Revenue ordinance of 1917 and subsequent amendment, the income tax became operative in the southern Nigeria in 1918 precisely Abeokuta in the Western Nigeria and Benin city in Mid-Western Nigeria and by 1928, it has extended to the Eastern Nigeria. With the passages of time the Native Revenue ordinance of 1917, 1918 and 1928 were transform into Direct Taxation Ordinance in 1940 and this automatically replaced the Nature Revenue Ordinance and the Native Direct Taxation (Colony) of 1937 which of course was regarded as been discriminatory in nature for the fact that it only applies to native in Nigeria other than Lagos Colony or township. In 1943, the Federal Board of Inland Revenue (F.B.I.R) was born as the sole tax authority to asses employees to tax on a current on Actual basis in respect of his emolument.
It must be emphasized here that the Government accounting gear then was between 1/4/19 – to 31/3/19 – e.g. An employees assessed to tax between 1/4/1943 and 31/3/1944 would be taxed based on 1993/44 year of assessment.