CHAPTER ONE GENERAL INTRODUCTION
Background to the study
Income tax is wholly the creature of statute. That is to say, there is no common law of taxation. No principles of law are applicable other than those principles, which are found in the taxing Acts themselves according to their true meaning and effect. In any tax case, it is consequently necessary for the court or tax commissioners to determine the true meaning and effect of the particular statutory provisions in question. The actual problem in connection with tax administration is that of enforcing tax payment. It is against this background that the Personal Income Tax Act of 1993 (as amended)1 as well as Companies Income Tax Act of 1990 (as amended) made penal provisions against any violations of their provisions. These are categorized into civil and criminal offences and penalties.
The Personal Income Tax Act2, (P.I.T.A) for instance, lays down income tax offences and penalties for their breach, such as legal proceedings, distraint of property, public auction of seized properties and monetary penalties for various income tax offences.3 Likewise, part XXI of Companies Income Tax Act (C.I.T.A) 1990, (as amended) listed various offences and penalties against any tax defaulter such as failure to comply with the provisions of C.I.T.A or rules, failure to comply with notices or summons, failure to answer questions on tax matters, failure to furnish returns, statement, information or keep correct records of income.4
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