Appraisal of the Jurisdictional Issues Confronting Prosecutors of Tax Related Disputes and Constitutional Bottlenecks

Abstract

Purpose: This paper examines the jurisdictional issues confronting tax enforcements, prosecution and other related issues. Jurisdiction over taxes administered at both the federal and state levels is determined by the legal personality of the taxpayer and place of residence for individuals. The Federal High Court, State High Courts and Tax Appeal Tribunal are vested with jurisdiction to hear and determine tax disputes. The Tax Appeal Tribunal is vested with jurisdiction to hear disputes arising from the operations of the Federal Inland Revenue Service. Tax disputes can be commenced either by the taxpayer or by the relevant tax authority. In practice, administrative channels within the relevant tax authority are usually the first step for resolution of tax disputes. Unresolved disputes proceed to the Tax Appeal Tribunal or Federal High Court, or where the tax is a State tax, to the State high court. The doctrinal research was used in carrying out this research.

Methodology: Both secondary and primary sourced materials such as textbooks, journals, internets, case laws etc. were used.

Finding: Finding reveals that there have been jurisdictional controversies confronting the constitutionality of TAT decision as well as the regular courts causing serious bottleneck for tax prosecutors.

Recommendation: It is recommended that in order to ensure tax compliance, effective resolution of tax disputes and proper administration of tax system, the issue of jurisdiction must be clearly spelt out.