Daily Law Tips (Tip 414) By Onyekachi Umah, Esq., LLM. ACIArb(UK)
Personal Income Tax is a direct tax charged on income, salary, allowance, wage, fee, bonuses, dividends or any benefit of an adult individual, communities, families, executors and trustees being resident in Nigeria or outside Nigeria or that of any person resident outside Nigeria but deriving income or profit from Nigeria.
Government can charge and collect personal income tax on a village or indigenous community, where the government tax agency is of the opinion that it cannot practicably assess individuals in a particular village or that general income of a village cannot be practicably shared with certainty among members of the village. Above all, such can only be done in line with the state law governing the state where the village is located and the tax may be charged on the estimated total income of all members of the village.
My authorities are sections 1, 2, 3, 108 and 109 of the Personal Income Tax Act 1993.
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