Commercial & Industrial Law-Scholarly Publications

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Browsing Commercial & Industrial Law-Scholarly Publications by Subject "A REVIEW OF ETI-OSA LOCAL GOVERNMENT v JEGEDE"

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    UNDERSTANDING THE BASIS OF TAXING POWERS OF LOCAL GOVERNMENTS - A REVIEW OF ETI-OSA LOCAL GOVERNMENT v JEGEDE
    (The Appellate Review, 2012) SANNI, A.O
    The extent of the taxing powers of local governments have been of great concern to stakeholders in the Nigerian tax system. It is generally believed that an unbridled exercise of taxing powers by the various local governments in Nigeria is largely responsible for the spate of multiplicity of taxes and levies usually targeted at corporate bodies. In a recent decision of the Court of Appeal in Eti-Osa Local Government v Jegede [2007] 10 NWLR (Pt.1043) 537, a bye-law which prohibits the establishment or operation of any corporate outfit for the purpose of carrying on a trade, business or occupation within the Local Government without a permit was voided. This article examines the basis of this decision and its possible contributions to the fiscal jurisprudence in Nigeria. The writer is of the view that the court reached the right decision, albeit, through doubtful conceptual reasoning. The writer contends that the levy in question is not a tax but a regulatory fee, hence it was wrong to have determined its validity or otherwise based on the provisions of Taxes and Levies (Approved List) for Collection Act, No 21 of 1998. Rather, the bye-law should have been voided on the basis that if it has not been made pursuant to any enabling state law based on the principle that the legislative power of the local government is derived from the state laws. The court also attributed certain powers to the Joint Tax Board (JTB) which the body does not statutorily possess.