CHALLENGES OF TAX ADMINISTRATION AND ENFORCEMENT OF TAX LAWS IN NIGERIA

Abstract

This article is titled ‘challenges of tax administration and enforcement of tax laws in Nigeria’. Tax administration and enforcement are crucial for achieving the objectives of tax laws and generating revenue for essential social amenities in Nigeria. However, numerous challenges hinder the effective implementation of tax policies. Tax evasion and avoidance are major problems, resulting in significant revenue losses. The high level of illiteracy among taxpayers and a lack of understanding of their tax rights and obligations contribute to the strained relationship between tax authorities and taxpayers. This article acknowledges that tax administration in Nigeria relies on outdated standards in a rapidly changing commercial landscape. To address these issues, it is proposed that tax payment processes should be made more user-friendly. The Federal Inland Revenue Service (FIRS) has initiated reforms that aim to improve the taxpayer experience. Additionally, government policies related to population and national identification systems can enhance tax administration. In an effort to improve tax administration and enforcement to achieve best practices obtainable in other jurisdiction it has been recommended that there is a need for consultation among stakeholders, adequate funding for effective tax administration and enforcement and administrative tax reforms.