THE PLACE OF TAXATION IN MODERN LAW PRACTICE

Abstract

Traditionally, commercial transactions were undertaken with the traditional perception of market in mind and taxation of those activities has been a source of government revenue. Global industrialization and efficiency in the factors of production and distribution of goods and services have significantly uttered the primordial perception of market to include legal practice apart from being a designated location for exchange of goods and services. So, digitalization has led to tremendous transaction requiring every sector including law practice to be taxed, to generate revenue for the government1. The practice of law has continued to undergo fundamental changes necessitated by the emergence of new developments in law and of which taxation is taking a toll on modern law practice just like the ICT. This paper therefore interrogates and encapsulates the role or place of taxation in modern law practice and whether law firms or legal practitioners should be taxed or exempted from paying taxes, difficulties being encountered in enforcing tax payments or e-tax payments on lawyers, and law firms alike, examination of relevant case laws, statutes including tax laws, and legislative amendments. It is against this backdrop that this paper sets out to distill, discuss and proffer panacea to front burner issues within the purview of taxation as it relates to modern law practice.