Published Paper Details:

The objective of this study is to appraise the administration of PAYE system of tax in Nigeria. The paper is a conceptual paper that focused on the procedures, templates and the assessment of income tax in Nigeria. The challenges affecting the assessment of PAYE system in Nigeria are not different from the general issues plaguing the administration of tax which include among other things: poor data base containing taxable persons and chargeable income; lack of competent manpower and the determination of residence. Other challenge is the time required to apply for refund of excess deduction. The approaches in the assessment and collection of tax liability are: simple approach, exact withholding and comprehensive withholding system. The current rate of determining tax liabilities of employees ranges between 7% and 24%. It is recommended that the Federal Inland Revenue Service should employ only chartered accountants, lawyers, graduates of Accountancy, statistics and related discipline in the administration of tax in Nigeria. Above all, the Head of Federal Inland Revenue Service and State Board of Internal Revenue should be persons with cognate experience and knowledge in taxation and Accountancy profession.