TAX COMPLIANCE BY LEGAL PRACTITIONERS AND THE ATTENDANT PROSPECTS TO GOVERNANCE IN NIGERIA: A LEGAL APPRAISAL

Abstract

The expectation of the law is that legal practitioners like every other citizen of Nigeria earning income are bound to pay tax. The tax payers are required to complete and file their tax returns correctly stating their income in the year of assessment. While complying with this basic requirement, a legal practitioner like any other tax payer will be allowed to make claims for expenses to be deducted and other reliefs available. But, it has been puzzling for legal practitioners to ask questions like are lawyers doing or involved in business? Are lawyers supposed to pay tax? Payment of tax is an obligation for all and sundry that makes income. This position of the law has not gone down well with legal practitioners. It has generated unnecessary embarrassment and avoidable frictions between relevant tax authorities and Legal Practitioners. This work appraises the different taxes legal practitioners are not immune from paying and exposes the attendant consequences for non-payment of tax on the individual legal practitioner and the society at large. The accelerated gains for the payment of tax on a particular legal practitioner and the overall impact on the society highlighted. Doctrinal method of data collection was adopted and analytical approach used in examining the research materials like the Constitution, tax statutes, judicial decisions, text books, journal articles and internet sources. The work discovered that the income from legal practice whether on a self employed status, either as a sole proprietorship, partnership or registered firms or lawyers in employment, (that is, those employed as employees who pay their taxes under Pay-As-You-Earn (PAYE) Scheme is taxable, hence, legal practitioner is a taxable person. Interestingly, tax laws provide for benefits accruing to a legal practitioner who honestly declares his tax and pays same as and when due and its benefit to the entire country in general.