A Legal Evaluation of Companies Income Tax Under the Nigerian Tax Regime

Abstract

The paper examined the legal evaluation of Companies Income Tax (CIT), its Practice, Enforcement and Effects in Nigeria. The conceptual clarification of the key concepts were considered and a comprehensive introduction of the companies income tax practice in Nigeria was reiterated. Amongst the key terms considered were company, income, tax and companies income tax respectively. It highlighted the legal history and imposition of companies income tax in Nigeria, prior, during and postcolonial era until the present day legal regime. In the same vein, administration of companies income tax in Nigeria was critically evaluated, including the classification of companies income tax, taxable companies and taxable profits respectively. Furthermore, the paper emphasized on the enforcement of companies income tax in Nigeria and elucidated on the importance and challenges of enforcement of companies income tax in Nigeria, which includes tax evasion and under declaration of income and profits in order to reduce amount of taxable profits. The paper was summarized with a conclusion.