The
law regulating Personal Income Tax in Nigeria is the Personal Income Tax
(Amendment) Act 2011. The Personal Income Tax Act Subsidiary Legislation
further provides for the regulations to be used in the operation of the Pay As
You Earn scheme. Personal Income Tax in Nigeria is a long standing concept
which is and would still be operational for a very long time. The Pay As You
Earn scheme has also been the established mode of collection of income tax in
Nigeria.
This
work would look into the strains paying of income tax puts on Nigerians. We
would determine whether it is justified to impose tax on individual’s income
and what benefits are derived by individuals from this imposition.
We
should also ask ourselves if Pay As You Earn scheme is the best and most
effective process through which income tax could be collected because if not
there would be need for improvement in the mode of collection.
In
conclusion, this work would look at the problems stated above and proffer
solutions to them.
