International tax issues under the nigerian tax legislation

• Author: K.I. Adam - R.T. Olorungbebe
• Position: LL.B (BUK), LL.M (OAU), Ph.D. (IIU, Malaysia), Senior Lecturer University of Ilorin, Ilorin, Nigeria - M.Sc. candidate Department of Accounting LL.B (BUK), LL.M (OAU), Ph.D. (IIU, Malaysia), Senior Lecturer University of Ilorin, Ilorin, Nigeria
• Pages: 35-45

AGORA International Journal of Juridical Sciences, http://univagora.ro/jour/index.php/aijjs

ISSN 1843-570X, E-ISSN 2067-7677

No. 1 (2018), pp. 35-45

35

INTERNATIONAL TAX ISSUES UNDER THE NIGERIAN TAX LEGISLATION

K.I. ADAM, R.T. OLORUNGBEBE

K.I. ADAM

LL.B (BUK), LL.M (OAU), Ph.D. (IIU, Malaysia), Senior Lecturer

University of Ilorin, Ilorin, Nigeria

Email: adam_kayus2003@yahoo.com

R.T. OLORUNGBEBE

B.Sc. (Unilorin), M.Sc. candidate

Department of Accounting

LL.B (BUK), LL.M (OAU), Ph.D. (IIU, Malaysia), Senior Lecturer

University of Ilorin, Ilorin, Nigeria

Email: rashoungbebe@gmail.com

ABSTRACT

The drive for global economic integration has necessitated the development and

adoption of certain international standards to guarantee increased certainty in business

environment across nations and reduce levels of risks in the market. Considering the

prominence of tax legislation as a major index or infrastructural component of an enabling

environment necessary for optimum investments and business growth, this paper attempts to

give an overview of issues relevant to international taxation and examines their level of

conformity to global standards.

1. BRIEF INTRODUCTION REGARDING THE NON BIS IN IDEM PRINCIPLE

The goal of globalization to deliver increased economic integration, collective

prosperity and better welfare for all admits the centrality of such economic policies as

removal of trade barriers and imposition of tax as tools for its attainment. However, while

removal of trade barriers seems central to internationalization of economic activities, taxation

has been employed at the national level to stimulate economic activities and raise revenue for

financing affairs of government. This apparent contradiction in substance and strategy of

governance at the various levels makes it imperative that some attempts be made to reconcile

them. Accordingly, this paper highlights issues that are relevant to international taxation

under the Nigerian legislation to determine whether their treatment is consistent with the

ultimate philosophy of globalization and how well it strikes a balance between the apparently

contradictory strategies. The paper finds that despite its lack of express reference to

deliberate policy to uphold the objective of globalization, Nigerian tax legislation carefully

applies its provisions to imposition and collection of tax purely to provide direction for

national economy and source revenue for running of government but not wrongly to erect

barriers against foreign participation. The principal issue of concern to international taxation

is the possibility of double taxation as examined in the next section.

2. DOUBLE TAXATION

Double taxation is a matter of serious concern to governments and their subjects

across the world. It occurs when more than one jurisdiction exercises authority to levy tax on

one and the same tax payer as a result of conflicting and sometimes overlapping tax

jurisdictional claims of two or more countries. It is basically wrong for one country to

exercise tax control within the tax jurisdiction of another.