AN EVALUATION OF THE STATUS OF COMPLIANCE OF TAX AUTHORITIES TO THE CONSTITUTIONAL RIGHTS OF TAXPAYERS

Abstract

Tax payers have rights to property, fair hearing and many more rights. The global trends in tax administration and dispute resolution tilt to unquestionable recognition of these rights. In Nigeria, the Federal Inland Revenue Service (Establishment) Act, (FIRSEA), 2007, established the Tax Appeal Tribunal. However, what remains unsettled is whether, having regard to apparent defects in the provisions of the establishing legislation, the current Tax Appeal Tribunal has lived up to expectation in resolving tax disputes and protecting the taxpayers’ rights in Nigeria. This work has done a critical evaluation of tax adjudication in Nigeria and its impacts on the rights of tax payers. Our finding revealed that the provisions of sections 21 and 31 of the Act and sections 8 and 17(1) of the 5th Schedule to the FIRSEA have inbuilt hardship affecting the taxpayers rights as well as their propensity to pay tax. Consequently, it is recommended that these sections should be amended to enhance confidence of the taxpayers in the tax dispute adjudication system in Nigeria and bring tax dispute resolution mechanism to the same footing with the global standard, in terms of fairness and equity.