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
SUMMARY

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... (see full summary)

 
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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.

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