Capital Gains Tax in Nigeria - 5234 Words

Term Paper written by Onipede Ibidunni Seun on Capital Gains Tax in Nigeria Introduction Discussing capital gain tax without first presenting a general overview of the entire concept of taxation will be tantamount to putting a cart before a horse. It is therefore very important that justice be done by explaining taxation and various types of taxes. Taxation: A General overview Tax and taxation has been variously defined by different authors. Oyegbile (1996) defines tax as a sum of money paid by citizens of a country, state or community to the government for public purpose. According to him taxation is one of the sources of income for government; such income is used to finance or run public utilities and perform other social†¦show more content†¦Such documents must be stamped before they can be tendered as evidence in a court or presented for registration. * Probate tax: This is the tax paid on the property or estate of a deceased in order to obtain letters of administration of the estate. The chargeable amount is based on the open market value of the estate, as at the date of death of the deceased. * Capital transfer tax: This tax is imposed on the capital value of properties transferred. This tax was introduced in nigeria in 1979 via the federal government official gazette No. 18, vol. 66. The law was enacted to curb embezzlement of public fun ds by private individuals since the bulk of any money stolen will be subjected to heavy taxation when the estate is to be transferred. * severance tax: This tax is levied on the extraction of natural resources like agricultural produce, forest resources, petroleum and metallic stones e. t. c. this tax is levied to ensure that the benefits from the natural resources which in real sense are God given free gifts of nature are shared by all. * Capital gains tax: This tax came about as a result of Decree 44 of 1977. It is a tax on the gains which speculators or other property dealers realize on sale of real estate or landed property. * Site value rating: This is a tax on unimproved capital value of the site. The tax was introduced to encourage owners of undeveloped land to put them into immediate profitable use. 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