PERSONAL AND PARTNERS INCOME TAX IN NIGERIA: A LEGAL APPRAISAL

Abstract

Personal Income tax is the tax imposed on the income of individuals, communities and families.  The tax is governed by Personal Income Tax Act; it provides for the assessment, collection and administration of the tax. Both the individuals, communities, families and trustee are liable to personal income tax. The word ‘personal’ does not limit the tax to the income of the individual. Communities, Families and Trustees, where applicable, are also required to pay tax. Taxation of partners is also governed by the Personal Income Tax Act. Under PITA, partners are taxed as individuals with chargeable incomes derived from the partnership business and other sources. They are also taxed according to their profit shares from partnership income. The paper seeks to appraise the administration of personal and partners income tax in Nigeria in order to unearth the administrative challenges. This paper adopts doctrinal methodology. Recourse was made to the study of textbooks, journals, and statutes and internet material. It is found that lots of legal and social issues affect the administration of personal income tax. There is need to engage all the stakeholders in the administration of personal income tax in order to entrench an improved tax system.