LEGAL APPRAISAL OF THE PROSPECTS IN TAXATION OF INCOME OF NON-GOVERNMENTAL ORGANISATIONS IN NIGERIA

Abstract

Taxation is one of the veritable tools in the hands of countries of the world. Income realized from taxation in some countries far outweighs the income realized from other sources of revenue of government. In the present growing rate of economic activities and dwindling rate of income generated from oil, Nigeria just like most countries of the world has the potential risk of failing to carry out its obligation from the income generated from oil. The government of Nigeria has also started looking inwards in the area of taxation by enacting certain tax laws to increase the rate of tax payable on goods and services such as vatable goods and services. There are corporate bodies called non-government organizations, which comprise of churches, town unions, civil liberties organizations, trade unions, foundations, and so forth that the law exempts their income from payment of taxes. These non-governmental organizations engage in one economic activity or the other wherein they acquire income to run the affairs of the organizations and enjoy every facility provided by the government. However, there are no adequate legal and institutional mechanisms for effective and efficient taxation of income of these non-governmental organizations. A lot of prospects abound for the economy of Nigeria when adequate legal and institutional mechanisms are put in place for the effective and efficient taxation of the income of non-governmental organizations in Nigeria. This work aims to appraise the prospects inherent in the taxation of income of Non-Government Organizations in Nigeria. The researchers adopted the doctrinal legal research methodology using the analytical approach with the aid of statutes, case law, textbooks, journals, articles, and Internet materials. The researchers concluded that the absence of a clear-cut legal framework among other things is seriously impeding the prospects inherent in the taxation of income of non-governmental organizations in Nigeria. Consequent to the above, the researchers recommended that there is an urgent need for stakeholders in Nigeria to ensure that adequate legal and institutional mechanisms are put in place for the effective and efficient taxation of the income of non-governmental organizations to actualize the prospects inherent in the taxation of income of non-governmental organizations in Nigeria.