FISCAL FEDERALISM AND DELEGATED LEGISLATIVE POWERS: WAS THE FEDERAL INLAND REVENUE SERVICE (FIRS)’S RECENT PUBLICATIONS ISSUED IN ACCORDANCE WITH RELEVANT TAX LAWS AND THE CONSTITUTION?
Nigeria operates a federalism under which power and responsibilities are shared between the federal, state and local government authorities, with separate revenue, expenditure, and assigned responsibilities. Also, the power to collect, regulate and administer taxes, is shared among the different levels of government. Thus, pursuant to the recommendations of the 2018 Revised National Tax Policy, most major tax statutes in Nigeria, including the Stamp Duty Act, were amended in January 2020 to ensure that the Nigerian tax regime is at par with global best practices and the prevailing digital economy. However, pursuant to its powers to issue circular and regulation which is based on Sections 7(1) and 61 of the Federal Inland Revenue Service (Establishment) Act No. 13 of 2007, the Federal Inland Revenue Service (FIRS) has issued multiple publications purporting to serve as explanatory guidelines and directions for stakeholders. This paper reviews these publications against the contemporary constitutional, administrative and statutory law principles, as well as case law. It posits that the recent publications which purport to either amend, vary or expand the substantive provisions of legislative laws on stamp duty administration and collection powers, violate principles of fiscal federalism and are overbroad, overreaching, ultra vires, duplicitous, vague and ambiguous, and/or unsupported statutes and case law. The paper concludes by suggesting reforms.