PERSONAL AND PARTNERS INCOME TAX IN NIGERIA: A LEGAL APPRAISAL

Abstract

Personal Income tax is the tax imposed on the income of individuals, communities and families. The tax isgoverned by Personal Income Tax Act; it provides for the assessment, collection and administration of the tax.Both the individuals, communities, families and trustee are liable to personal income tax. The word ‘personal’does not limit the tax to the income of the individual. Communities, Families and Trustees, where applicable,are also required to pay tax. Taxation of partners is also governed by the Personal Income Tax Act. UnderPITA, partners are taxed as individuals with chargeable incomes derived from the partnership business andother sources. They are also taxed according to their profit shares from partnership income. The paper seeks toappraise the administration of personal and partners income tax in Nigeria in order to unearth theadministrative challenges. This paper adopts doctrinal methodology. Recourse was made to the study oftextbooks, journals, and statutes and internet material. It is found that lots of legal and social issues affect theadministration of personal income tax. There is need to engage all the stakeholders in the administration ofpersonal income tax in order to entrench an improved tax system.