Capital Gains Tan in Nigeria.docVIP

Capital Gains Tan in Nigeria 　　[a] Department of Commercial Law, Kogi State University, Anyigba. 　　*Corresponding author. 　　Received 31 March 2012; accepted 8 June 2012. 　　Abstract 　　Tax is a compulsory levy imposed by the government on the incomes of taxpayers in order to pay the expenses of governance. Capital Gains Tax is a form of tax chargeable on capital gains arising from the disposal of chargeable assets. This paper examines the nature and the justification for Capital Gain Tax as a lucrative ground for raising revenue for development especially in the developing countries. In Nigeria, Capital Gain Tax is yet to yield the desired result in terms of raising revenue for the government. Our theoretical work on this subject explain reasons which includes lack of awareness, inadequate data and the high rate of inflation which has led to high incidence of avoidance of Capital Gain Tax. Arguments against capital gain tax in Nigeria are examined as well as issues, suggestions and recommendations for the effectiveness of this form of taxation. This paper recommends more aggressive awareness campaign, reduction of tax rate and even a merger of capital gain with income tax to reduce cost of collection. 　　Key words: Capital Gains Tax; Government; Nigeria 　　Obaje Enemaku Esq (2012). Capital Gains Tan in Nigeria. Canadian Social Science, 8(3), -0. Available from URL: /index.php/css/article/view/j.css.1923669720120803.3700 　　DOI: /10.3968/j.css.1923669720120803.3700. 　　INTRODUCTION 　　Taxation has been with man. Apart from revenue to the government, taxation is important to all, taxes collected come back to the taxpayers in the form of social amenities (Ola, 2001). 　　In recent times, taxation is an economic tool that can be used to steer the economy in order to achieve a particular micro or macro economic growth. In developing countries for example, this economic tool for development may be through tax concessions to newly established firms starting new activities (Sha