Abstract:
The governments of developing economies such as that of Nigeria have been making frantic efforts to meet up its obligations to their respective citizenry via provision of basic social amenities such as schools, hospitals, roads etc. Nigeria is however to focal point of this study. Tax is the income that is paid to the government in order to fulfil the needs of the public. The introduction of taxation becomes necessary to form, and it has become a source among n others of raising revenue from the government to actualize its goals. This study examines its effect on developing economy vice-a-vis its contributions or otherwise to the economic growth and development of the country Nigeria. Tax ranks next to the petroleum revenue in terms of volume of income to the government in Nigeria. The study observes that responsibilities are assigned to three key elements of stakeholders in a tax authorities and the government. It notes that it is the civic obligations of the tax payers to pay tax. Also noted is the fact that the tax authorities ensure executive collection of tax revenues to governments. More so, is the revelation by this study that government imposes tax on the tax payer in order to finance its activities for the ultimate benefit of the tax payers. The paper concludes that in view of the vital roles that taxation plays on the economy development in Nigeria, every attention should be given to the proper accounting records maintenance. It is recommended that tax payers should seek the advice of professionals and consultants on tax payable by them in order to reduce their tax burdens via double payment.
