REVISITING CLASSICAL AND CONTEMPORARY CANONS OF TAXATION: AN ASSESSMENT OF THE NIGERIAN CORPORATE TAX SYSTEM

Abstract

Taxation remains an indispensable instrument of governance and economic coordination. It serves not only as a means of revenue generation but also as a mechanism for redistribution and socio-economic development. Taxation system in Nigeria has been said to be combating several challenges. Thus, this paper revisits the classical and contemporary canons of taxation to assessing the Nigerian company taxation system. The paper adopts doctrinal method of legal research to interrogating the multifaceted concept of taxation by tracing its definitional complexities through dictionary meanings, case law interpretations, and scholarly perspectives. The paper explores the essential constituents of a good tax system and evaluates the enduring relevance of Adam Smith’s classical canons equity, certainty, convenience, and economy in the context of modern tax administration. The paper pays special attention to Nigeria’s corporate tax system by assessing its alignment with contemporary canons of taxation of neutrality, flexibility and administrative efficiency as refined by the Meade Committee.  The paper interrogates the tension between theoretical ideals and applied fiscal policy to determining the feasibility of harmonizing the classical tax canons with the dynamic needs of emerging economies. The paper finds that while Nigeria’s tax framework nominally embraces these principles, practical implementation is undermined by legal ambiguity, perceived inequity, high administrative costs, and inter-agency disjunctions. The paper concludes that a principled, coherent, and context-sensitive tax policy is essential to fostering compliance, transparency, and sustainable economic growth in Nigeria. The paper proffers actionable recommendations aimed at simplifying legislation, enhancing equity, strengthening institutional coordination, and modernising administrative processes.