LEGAL EVALUATION OF THE EFFECT OF GLOBAL FINANCIAL MELTDOWN ON THE TAXATION OF THE CAPITAL MARKET ON VALUE ADDED TAX: THE NIGERIAN EXPERIENCE

Abstract

The paper aims to unravel the effect of global financial meltdown on the taxation of the Nigerian capital  market  on  Value  Added  Tax  through  a  critical  examination  of  relevant  literature  on  the subject  area.  In  the  bid  to  achieve  this  objective,  resort  is  made  to  adopting  a  theoretical  and doctrinal methodology, wherein relevant primary and secondary sources materials were utilized. This  includes,  a  critical  examination  of  relevant  statutory  provisions,  case  law  and  scholarly literature.  The  information  obtained  through  these  sources,  was  subjected  to  a  contextual  and descriptive analysis. The paper finally reaches its findings by revealing that the global economic meltdown has much to do with the crash of prices/stock in the Nigerian Stock Exchange market thereby having serious effect on the investment mobility as in taxation of Value Added Tax. The paper  therefore  recommends  the  need  for  education  of  shareholders  (investors)  in  Nigeria  to appreciate  the  price  movement  and  the  Central  Bank  of  Nigeria  should  continue  to  monitor  the level of liquidity in the system so as to maintain a reasonable balance of cash flow in the economic system.