Tax Matters

Taxes are a cost that every person must face to support the government because they are traditionally a major source of income for governments around the world.

Olaofa (2008) asserts that the government must carry out specific tasks on behalf of its constituents.
The extent of these functions will vary depending on factors including the political and economic orientation of the society’s members, their needs and aspirations, their willingness to pay, and other factors.
The supply of communal or public goods, which cannot be split among the many members of society but which must be used for the benefit of all, is one of the traditional functions of the government.
For example, maintaining law and order, and protecting against external to achieve social and economic fairness, aggressiveness, and business and trade control is necessary.

The amount of money needed to support government institutions must increase as its duties expand.
As a result, taxes are a reality that is as old as governmental organizations; in fact, it is stated that taxes are “as certain as death” (Olarfe 2008).

According to Abubakar (2008), a nation’s tax policies serve as a crucial tool for allocating resources between the public and private sectors.
It is typically imposed on the people and circumstances that make up a nation.

The state uses the money raised by the tax to pay for things like the public transit system, retirement plans for the aged, and the elderly health care system.
a country’s tax system frequently reflects the values of people in power or its commercial values.

According to Adekaula (1997), the Nigerian taxation system began in 1904 with the introduction of the personal income tax in Northern Nigeria. The Native Revenue Ordinance was then used to apply for the benefits in the western and eastern regions in 1917 and 1928, respectively.
It was later incorporated into direct taxation decree No. 4 of 1940, among other changes made in the 1930s.
The Income Tax Management Tax Act (TIMA) of 1961 was encouraged by the requirement for personal income tax.
Section 27 was modified in 1993 and is now known as section 85.
PITA also underwent amendments in 1996 and 1998.
Other taxes levied in addition to the personal income tax (PIT) include Nigeria includes taxes on business profits such as taxes on education, capital gains, information, and technology.
Depending on their areas of jurisdiction, various levels of government are responsible for collecting certain taxes.
The goal of changing tax laws is to close current loopholes in the tax code and enhance the nation’s taxation system.

Fiscal policy: This is the employment of public spending, taxes, borrowing, and financial management to advance overall national economic goals.

An assumption about a certain population parameter that would be put to the test to determine whether or not it was accurate is referred to as a hypothesis.

Research is an investigation carried out to learn more about something or to make a discovery.

Background: This explains how a concept’s organ works.

Tax Liabilities: The taxes listed here.

Gains from the sale of movable property are known as capital gains.

Deferred taxes are tax obligations that result from time discrepancies.

Value-Added Taxes (VAT) are levied on goods and services.

Taxpayer: This can relate to a natural person or a business entity.

Tax Credit: This is a credit given in relation to a taxpayer’s acquisition of a qualifying capital expense.

Tax Authority: This term refers to the top agency in charge of collecting and assessing taxes at the state or federal levels.

Investment Allowance: This is provided to specific categories of businesses as an incentive for making certain capital expenditures, particularly in the field of agriculture.

A type of tax is referred to as withholding tax when paying suppliers, contractors, consultants, or other professionals through a variation.