A conceptual model for standardized taxation of SMES in Nigeria: Addressing multiple taxation
1 Standards Organization of Nigeria.
2 Zenith General Insurance Company Limited, Nigeria.
3 The Velvet Expression, Lagos, Nigeria.
4 Independent Researcher, Lagos, Nigeria.
5 Zenith Bank Nigeria.
Review
International Journal of Frontline Research and Reviews, 2023, 01(04), 001–017
Article DOI: 10.56355/ijfrr.2023.1.4.0035
Publication history:
Received on 23 May 2023; revised on 19 July 2023; accepted on 22 July 2023
Abstract:
Nigeria's small and medium-sized enterprises (SMEs) face significant challenges due to the complex and fragmented taxation system, which often results in multiple taxation and administrative burdens. This paper presents a conceptual model for standardized taxation aimed at addressing these issues and fostering a more efficient tax environment for SMEs. The proposed model seeks to streamline tax policies, reduce the incidence of multiple taxation, and enhance compliance through a unified framework. The model emphasizes the need for harmonizing tax regulations across federal, state, and local levels to eliminate inconsistencies and overlapping tax obligations. By implementing clear and consistent tax guidelines, the model aims to simplify the tax compliance process for SMEs and reduce the risk of double taxation. Additionally, the model proposes the introduction of a centralized digital platform to manage tax filings, payments, and documentation, which will improve efficiency and transparency in the taxation process. A critical component of the model is the establishment of standardized tax incentives and reliefs tailored to the needs of SMEs. These incentives are designed to encourage growth and investment while mitigating the negative impacts of excessive taxation. Furthermore, the model advocates for regular stakeholder engagement, including consultations with SMEs, tax authorities, and policymakers, to ensure that the tax policies are practical and effective. The expected outcomes of implementing this standardized taxation model include improved tax compliance, reduced administrative costs for SMEs, and a more transparent and predictable tax environment. By addressing the issues of multiple taxation and providing targeted support, the model aims to enhance the overall business climate for SMEs in Nigeria, contributing to economic growth and development.
Keywords:
Standardized taxation; SMEs; Nigeria; Multiple taxation; Tax compliance; Tax incentives; Digital tax platform; Harmonization of tax policies; Economic development
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Copyright © 2023 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0