FEDERAL POLYTECHNIC OFFA, KWARA STATE

SCHOOL OF BUSINESS AND MANAGEMENT STUDIES

DEPARTMENT OF ACCOUNTANCY

PREPARED BY GROUP 3

Assignment on

1. Discuss comprehensively organs of tax administration (Compositions

and Functions)
2. What are the factors that enhance efficiency of tax administration in
Nigeria?
SN MATRIC NO
1. AC/ND/F22/5749
2. AC/ND/F22/5985
3. AC/ND/F22/5739
4. AC/ND/F22/5856
5. AC/ND/F22/5763
6. AC/ND/F22/5729
7. AC/ND/F22/5851
8. AC/ND/F22/5742
9. AC/ND/F22/5880
10. AC/ND/F22/5956
11. AC/ND/F22/5747
12. AC/ND/F22/5835
13. AC/ND/F22/5791
14. AC/ND/F22/5958
15. AC/ND/F22/5711
16. AC/ND/F22/5811
17. AC/ND/F22/5806
18. AC/ND/F22/5830
19. AC/ND/F22/5773
20. AC/ND/F22/5720
21. AC/ND/F22/5906
22. AC/ND/F22/5979
23. AC/ND/F22/5813
24. AC/ND/F22/5814
25. AC/ND/F22/5779
26. AC/ND/F22/5857
27. AC/ND/F22/5884
28. AC/ND/F22/5770
 29. AC/ND/F22/5803
30. AC/ND/F22/5894
Organs of Tax Administration in Nigeria
In Nigeria, the administration of taxes is overseen by various organs at different levels of
government. These organs play crucial roles in ensuring compliance with tax laws, collection of
revenue, and enforcement of tax regulations. The key organs of tax administration in Nigeria
include:
1. Federal Inland Revenue Service (FIRS): The Federal Inland Revenue Service is the primary
tax authority in Nigeria responsible for assessing, collecting, and accounting for federal
taxes. It operates under the Federal Inland Revenue Service (Establishment) Act 2007 and
has the mandate to administer taxes such as Companies Income Tax, Value Added Tax
(VAT), Personal Income Tax, Capital Gains Tax, and Withholding Tax.
Composition: The FIRS is the primary tax authority in Nigeria responsible for assessing, collecting,
and accounting for federal taxes. It is headed by a Chairman who oversees various departments
and units.
Administration & Human Resources Department: This department is responsible for providing
administrative and human resource support to the FIRS, including personnel management,
training and development, welfare, and security.
Enforcement & Compliance Department: This department is responsible for ensuring tax
compliance by taxpayers through various enforcement strategies such as audits, investigations, and
prosecutions.
Tax Policy Department: This department is responsible for providing policy advice on taxation
matters and developing tax policies that promote economic growth and development.
Tax Operations Department: This department is responsible for the actual assessment and
collection of taxes from taxpayers, including the management of taxpayer accounts, filing and
processing of tax returns, and issuance of tax clearance certificates.
Digital Services Department: This department is responsible for managing the FIRS’ digital
platforms and services, including the implementation of technology solutions for tax
administration, data management, and analytics.
Functions: The FIRS is responsible for administering taxes such as Companies Income Tax, Value
Added Tax (VAT), Petroleum Profit Tax, Capital Gains Tax, and Withholding Tax at the federal
level. It also formulates tax policies, conducts audits, enforces tax laws, and educates taxpayers on
their obligations.
Assessment and Collection of Taxes: The FIRS is responsible for assessing, collecting, and
accounting for taxes and other revenues due to the federal government. This includes taxes such as
Company Income Tax (CIT), Value Added Tax (VAT), Withholding Tax (WHT), Personal Income
Tax (PIT), Capital Gains Tax (CGT), Stamp Duties, and Education Tax (EDT).
Taxpayer Education and Enlightenment: The FIRS is mandated to educate and enlighten taxpayers
on their tax obligations, rights, and benefits through various channels such as seminars, workshops,
publications, and online platforms.
Tax Administration Reform: The FIRS is responsible for implementing reforms that enhance the
effectiveness and efficiency of tax administration in Nigeria. This includes automating tax
processes, simplifying tax procedures, improving taxpayer services, and strengthening enforcement
mechanisms.

Tax Policy Advice: The FIRS provides policy advice on taxation matters to the federal government
and other stakeholders to promote economic growth and development.
International Tax Cooperation: The FIRS collaborates with international tax authorities to
promote cross-border tax cooperation and combat tax evasion, fraud, and other related crimes.
2. State Internal Revenue Services (SIRS): At the state level, each of the 36 states in Nigeria
has its own State Internal Revenue Service responsible for collecting state taxes and levies.
These include taxes like Pay-As-You-Earn (PAYE) tax, Land Use Charge, Development
Levy, and other state-specific taxes. The SIRS work independently but are guided by
relevant state tax laws.
Composition: Each state in Nigeria has its own State Internal Revenue Service responsible for
collecting state taxes.
Board: Each SIRS is usually governed by a board responsible for overseeing its operations and
ensuring compliance with tax laws and regulations.
Management Team: There is a management team in place to execute the day-to-day activities of the
SIRS, including tax collection, enforcement, and taxpayer education.
Departments: SIRS often have different departments or units dedicated to specific tax types such as
income tax, sales tax, property tax, and others.
Taxpayers: The taxpayers themselves are an integral part of the composition of SIRS, as they are
the primary source of revenue through tax payments.
Functions: The SIRS administers taxes like Personal Income Tax, Land Use Charge, Development
Levy, and other state-specific taxes. They also enforce compliance with tax laws within their
respective states.
Tax Collection: One of the main functions of SIRS is to collect various forms of taxes from
individuals, businesses, and organizations operating within the state.
Tax Enforcement: SIRS are responsible for enforcing tax laws and regulations to ensure compliance
among taxpayers. This may involve audits, investigations, and penalties for non-compliance.
Taxpayer Education: SIRS also engage in taxpayer education initiatives to increase awareness
about tax obligations, filing procedures, and benefits of paying taxes.
Revenue Generation: By collecting taxes efficiently, SIRS contribute significantly to the revenue
generation efforts of state governments, which is crucial for financing public services and
infrastructure development.
Policy Development: SIRS may also be involved in policy development related to taxation at the
state level, working to improve tax systems and administration processes.
 3. Local Government Revenue Committees: Local governments in Nigeria also have revenue
committees tasked with collecting certain local taxes and levies within their jurisdictions.
These committees oversee revenue generation from sources like market dues, tenement
rates, radio and television licenses, and other local levies.
Compositions:

Local Government Revenue Committees in Nigeria are typically composed of various members who
are responsible for overseeing revenue generation activities at the local government level. The
composition of these committees may vary slightly depending on the specific local government area,
but they generally include the following key members:
Chairman: The chairman of the Local Government Revenue Committee is usually appointed by the
local government chairman or council. The chairman plays a crucial role in coordinating the
activities of the committee and ensuring that revenue generation targets are met.
Secretary: The secretary of the committee is responsible for keeping records of meetings, preparing
reports, and handling administrative tasks related to revenue collection and management.
Revenue Officers: These officers are tasked with the actual collection of revenue within the local
government area. They may be responsible for collecting taxes, levies, fees, and other sources of
revenue.
Financial Experts: In some cases, local government revenue committees may include financial
experts or consultants who provide guidance on financial matters and help optimize revenue
collection strategies.
Representatives from Relevant Departments: Depending on the structure of the local government,
representatives from various departments such as finance, planning, and administration may also
be part of the committee to ensure coordination and collaboration across different functions.
Functions:
The primary functions of Local Government Revenue Committees in Nigeria include:
Revenue Mobilization: One of the main functions of these committees is to mobilize revenue for the
local government through various means such as taxation, levies, fees, and other sources.
Budgeting and Planning: Local Government Revenue Committees are involved in budgeting
processes and long-term financial planning to ensure that revenue targets are aligned with
expenditure needs.
Monitoring and Evaluation: These committees monitor revenue collection activities, track
performance against targets, and evaluate the effectiveness of revenue generation strategies.
Compliance and Enforcement: Ensuring compliance with tax laws and regulations, as well as
enforcing payment obligations among residents and businesses within the local government area.
Reporting: Local Government Revenue Committees are responsible for preparing regular reports
on revenue collection activities, financial performance, and any challenges or issues encountered.
4. Joint Tax Board (JTB): The Joint Tax Board is a coordinating body that harmonizes tax
administration across the federal and state levels in Nigeria. It facilitates collaboration
 among tax authorities to ensure uniformity in tax policies, procedures, and enforcement
mechanisms.
Composition: The JTB is a coordinating body comprising the Chairmen of the FIRS and all SIRS.
Chairman: The Chairman of the Federal Inland Revenue Service (FIRS) serves as the Chairman of
the JTB.

Members: The members include the chairmen of the State Boards of Internal Revenue or their
representatives.
Functions: The JTB harmonizes tax administration across the country, resolves inter-state tax
disputes, promotes best practices in tax administration, and provides a platform for collaboration
among tax authorities.
Harmonization: One of the key functions of the JTB is to harmonize tax administration processes
and procedures across all states in Nigeria. This helps in promoting consistency and reducing
discrepancies in tax collection.
Capacity Building: The JTB is involved in capacity building initiatives for tax administrators to
enhance their skills and knowledge in tax administration.
Information Sharing: The board facilitates the sharing of information and best practices among tax
authorities at both federal and state levels.
Policy Formulation: The JTB plays a role in formulating tax policies that are aimed at improving
tax compliance and revenue generation.
Dispute Resolution: It also serves as a platform for resolving disputes that may arise between states
or between states and federal tax authorities.
5. Nigerian Customs Service: While not solely focused on taxation, the Nigerian Customs
Service plays a significant role in revenue generation through the collection of import
duties, excise duties, and other customs-related charges at the borders.
Composition: The Nigeria Customs Service is responsible for collecting customs duties on imported
goods.
Departments: The Nigerian Customs Service is structured into various departments to efficiently
carry out its functions. These departments include the Department of Finance, Administration,
Tariff and Trade, Enforcement, Investigation, and Inspection.
Ranks: The NCS has a hierarchical structure with different ranks ranging from the Comptroller-
General to various officers at different levels. These ranks are essential for maintaining discipline
and ensuring smooth operations within the organization.
Training Institutes: The NCS also has training institutes such as the Customs Training College in
Abuja, where officers undergo specialized training to enhance their skills and knowledge in customs
operations.
Functions: Apart from revenue collection, the Customs Service also plays a crucial role in trade
facilitation by enforcing import/export regulations and combating smuggling.
Revenue Collection: One of the primary functions of the NCS is to collect customs duties, excise
duties, and other taxes on imported goods. This revenue is vital for the government’s budget and
economic development.
Trade Facilitation: The NCS plays a crucial role in facilitating international trade by ensuring
compliance with trade regulations, simplifying customs procedures, and reducing trade barriers.
Anti-Smuggling Activities: Another key function of the NCS is to combat smuggling activities that
undermine legitimate trade and revenue collection. The agency employs various strategies such as
border patrols, intelligence gathering, and collaboration with other law enforcement agencies to
curb smuggling.

Tariff Classification: The NCS is responsible for classifying imported goods according to the
Harmonized System (HS) codes to determine applicable duties and taxes. Proper tariff
classification helps prevent under-declaration or misdeclaration of goods.
Border Security: Ensuring border security is an essential function of the NCS to prevent illegal
entry of goods, arms, drugs, and other prohibited items into the country. Border control measures
help safeguard national security and public health.
6. Tax Appeal Tribunals: Tax Appeal Tribunals provide a platform for resolving disputes
between taxpayers and tax authorities in Nigeria. These tribunals offer an avenue for
taxpayers to challenge tax assessments or decisions made by tax authorities.
Composition: Tax Appeal Tribunals are independent bodies established to resolve disputes between
taxpayers and tax authorities. The Tax Appeal Tribunal (TAT) in Nigeria is composed of the
Chairman, Members, and the Registrar. The Chairman is appointed by the President of the Federal
Republic of Nigeria, upon the recommendation of the Minister of Finance. The Members are also
appointed by the President, upon the recommendation of the Minister, in consultation with the
Chairman of the Federal Inland Revenue Service (FIRS). The Registrar is appointed by the
Chairman of the TAT, after consultation with the National Judicial Council (NJC).
Functions: These tribunals provide a platform for taxpayers to appeal decisions made by tax
authorities and ensure fair resolution of tax disputes.
Adjudication: The TAT is responsible for hearing and determining appeals against assessments,
decisions, or actions taken by the FIRS or any other tax authority in Nigeria. This includes appeals
on matters such as tax assessments, tax payments, and tax refunds.
Interpretation of Tax Laws: The TAT has the power to interpret tax laws and regulations in Nigeria.
This includes providing guidance on the meaning and application of tax laws, regulations, and
policies.
Alternative Dispute Resolution: The TAT offers alternative dispute resolution mechanisms for tax
disputes in Nigeria. This includes mediation, conciliation, and arbitration, which are designed to
provide a faster and more cost-effective resolution to tax disputes.
Review of Tax Assessments: The TAT has the power to review tax assessments made by the FIRS or
any other tax authority in Nigeria. This includes reviewing the accuracy and validity of tax
assessments, as well as determining whether the correct procedures were followed in making the
assessment.
Determination of Tax Penalties: The TAT has the power to determine tax penalties imposed by the
FIRS or any other tax authority in Nigeria. This includes reviewing the appropriateness and
legality of tax penalties, as well as determining whether they were imposed correctly.
Recommendations on Tax Policy: The TAT can make recommendations to the Minister of Finance
on tax policy matters in Nigeria. This includes providing input on proposed tax laws and
regulations, as well as suggesting ways to improve the tax system in Nigeria.

Public Education: The TAT has a responsibility to educate the public about tax laws and
regulations in Nigeria. This includes providing information on tax rights and obligations, as well as
promoting voluntary compliance with tax laws and regulations.

7. Ministry of Finance: The Ministry of Finance oversees fiscal policy formulation and
implementation in Nigeria. It plays a supervisory role over tax administration agencies and
ensures coordination between fiscal policies and revenue collection efforts.
Composition: The Ministry of Finance plays a supervisory role over the various tax authorities in
Nigeria.
Budget Office: Responsible for preparing the annual national budget, monitoring budget
implementation, and ensuring fiscal discipline.
Debt Management Office (DMO): Manages the country’s debt portfolio, including borrowing and
repayment activities to ensure sustainable debt levels.
Federal Inland Revenue Service (FIRS): Responsible for tax administration and collection to
generate revenue for the government.
Customs Service: Handles customs duties, tariffs, and trade facilitation to regulate imports and
exports.
Accountant General’s Office: Manages government accounts, payments, and financial reporting.
Functions: It formulates fiscal policies, oversees budget implementation, coordinates economic
planning, and provides overall guidance on financial matters including taxation.
Fiscal Policy Formulation: Developing strategies to manage government revenue, expenditure, and
borrowing to achieve macroeconomic stability.
Budget Planning and Implementation: Drafting annual budgets, allocating resources to various
sectors, and monitoring budget execution.
Revenue Generation: Implementing tax policies, customs duties, and other revenue-generating
measures to finance government activities.
Debt Management: Monitoring public debt levels, issuing bonds, managing loans, and ensuring
debt sustainability.
Financial Regulation: Overseeing financial institutions, ensuring compliance with regulations, and
promoting a stable financial system.
Economic Development: Supporting initiatives that promote economic growth, job creation,
poverty reduction, and sustainable development.

Factors that Enhance Efficiency of Tax Administration in Nigeria

Efficiency in tax administration is crucial for any country to effectively collect revenue for public
services and development. In the case of Nigeria, several factors can enhance the efficiency of tax
administration:

1. Simplification of Tax Laws and Procedures: Complex tax laws and procedures can create
confusion and increase compliance costs for taxpayers. Simplifying tax laws and procedures
can make it easier for taxpayers to understand their obligations, leading to higher
compliance rates.
2. Use of Technology: Leveraging technology can significantly improve the efficiency of tax
administration. Implementing electronic filing systems, online payment platforms, and data
analytics can streamline processes, reduce errors, and enhance transparency.
3. Capacity Building: Investing in training and development of tax officials is essential for
improving tax administration efficiency. Well-trained staff are better equipped to handle
complex tax issues, provide quality taxpayer services, and enforce compliance effectively.
4. Enhanced Taxpayer Education: Educating taxpayers about their rights and responsibilities
can lead to increased voluntary compliance. Public awareness campaigns, workshops, and
seminars can help improve taxpayer understanding and willingness to fulfill their tax
obligations.
5. Strengthening Institutional Framework: Establishing strong institutional frameworks with
clear roles and responsibilities for tax authorities can enhance accountability and
transparency in tax administration. This includes creating independent oversight bodies to
ensure compliance with regulations.
6. Collaboration with Other Agencies: Coordinating efforts with other government agencies,
such as customs, financial intelligence units, and law enforcement agencies, can help combat
tax evasion and fraud more effectively. Information sharing and joint operations can lead to
better enforcement outcomes.
7. Risk-Based Approach: Adopting a risk-based approach to tax administration allows
authorities to focus resources on high-risk areas or taxpayers, maximizing compliance
outcomes with limited resources. This approach involves using data analytics to identify
potential non-compliance patterns.
8. International Cooperation: Engaging in international cooperation t