Attached.

Discussion and Conclusion
Name
Institution Affiliation
Date

DISCUSSION OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.0

INTRODUCTION

This section presents the discussion of findings, draws logical conclusions based on the findings
of the study and suggests basic recommendations vital for investors when making decisions

5.1

DISCUSSION OF FINDINGS

Reforms in the area of tax payer education and increase in the use of modern information
technologies have led to substantial increase in public awareness of tax issues. The
computerization of the revenue collection has reduced the risk of cheque diversion, thus improving
tax generation. The impact of the reforms has positively affected the whole system although the
issue of ‗ability to pay ‘on the part of the taxpayers is yet to be fully or completely satisfied.

An examination of some tax litigation reveals that the service is much more aggressive in its tax
generation effort. The Tax Appeal Tribunal has proved to be a robust dispute resolution
mechanism. It has also introduced measures to expedite cases that come before for it as evidenced
by the increase in tax dispute adjudicated by the Tax Appeal Tribunal.

Tax consultants are one of the major developments in Nigeria Tax System since the 1980s. The
inclusion of such tax consultants into regular tax administrative functions of assessment and
collection, particularly at the state and local level should be curtailed. They emerge to exploit lower
level of government for much higher internally generated revenues by multiplying taxes, only the
tax consultants themselves see their relevance in the contemporary Nigeria Tax System and only

they fail to see the enormous damage they are doing to taxation in Nigeria by acting
unprofessionally.

It is often difficult and slow to obtain a ruling from the tax authorities. This makes voluntary
compliance difficult for willing tax taxpayers. As is the case in some countries, Nigerian tax
authorities should adequately resource the relevant department in charge of ruling and if necessary
charge for ruling request especially on urgent matters. And where a tax payer is aggrieved, there
is no recourse in most cases as states do not have a body of appeal commissioners in place. This
leaves the tax payer with the unattractive option of directly approaching the High Court. Also,
notwithstanding the due process clearly led down in the tax legislation, many tax authorities
especially at the state and local levels rarely follow due process in the activities by harassing and
intimidating tax payers without regard to the provision of the law.

The implementation of the reforms has actually led to the emergence of the FIRS as an efficient
and effective tax body with well trained and specialized staff. Provision of incentives have
attracted the best and brightest in to the FIRS and served to motivate them in performance of their
duties as well as discourage corruption. Mechanisms have also been put in place for disciplining
of erring staff

5.2

CONCLUSIONS

Tax reform is a vital key to bringing about changes in the system in order to bring in more revenue
and initiate improved tax administration in the country. The impact of the reforms have started to
manifest as noted in the following: enhanced uniformity and standards in application of laws and
procedures, co-ordination of the various types of companies and proper monitoring of their
activities, reduction in functional duplication and waste, faster service delivery to the tax payers
and higher revenue collection.
The Federal Inland Revenue Service (Establishment) Act, 2007 has laid the foundation for the
emergence of a modern and efficient tax administrative agency. The Federal Inland Revenue
Service has also redefined the role of taxation in Nigeria as an important condition for a healthy
nation and redirected national attention to the primary role of a functional tax system in sustainable
national development. The ...