AN EXAMINATION OF TAX PAYERS’ INVOLVEMENT IN THEMANAGEMENT OF TAX REVENUE GENERATION UNDER THECOMPANIES INCOME TAX LAW IN NIGERIA

ABSTRACT:

Governments worldwide depend on taxation as a primary revenue source to finance public budgets. Nigeria implements diverse taxes including Petroleum Profit Tax, Companies Income Tax (CIT), Value Added Tax, Capital Gains Tax, and Personal Income Tax. Among these, CIT generates the highest government revenue after Petroleum Profit Tax. This study examines the extent of taxpayer involvement in managing CIT revenue generation under Nigerian law, with objectives to evaluate taxpayer engagement, identify strategies to enhance cooperation for improved revenue collection, diagnose implementation challenges, and propose recommendations to address existing gaps. The research analyzes statutory frameworks including the Companies Income Tax Act (Cap C21, LFN 2004), Finance Act 2020, Tax Administration (Self- Assessment) Regulation (2011), and the Federal Income Revenue Service Establishment Act (2007) among others. Findings indicate that while CIT effectively generates revenue, optimizing its potential requires addressing key challenges. Recommendations include involving taxpayers in policy formulation and review beyond implementation; implementing tax incentives; strengthening enforcement mechanisms; conducting regular audits of companies and administrators; minimizing multi-taxation burdens and tax evasion; and directing revenue toward infrastructural development to build taxpayer trust.

Keywords: Companies Income Tax Act (CITA), Revenue Generation, Taxpayer, Nigeria Tax Compliance, Corporate Tax Administration