Nigerian Tax System and Policy Defectiveness: How Relevant is Warren Buffett Theory

Abstract

The study examines the Nigerian tax system and policy defectiveness vis-à-vis Warren Buffett theory. Toachieve the objectives of the study, the primary source of data collection (Questionnaire) was used. Thequestionnaires were administered on the employees of Ogun State Internal Revenue Service, Tax consultants andAccountants (all referred to as the study’s population). A sample of 60 individuals was drawn from thepopulation using the random sampling technique which gives every individual in the population the equal chanceof being chosen. Data collected were presented in tables with simple percentage, pie chart and the hypotheseswere tested using the Analysis of Variance (ANOVA). The research findings disclosed that there is significantrelationship between tax policy deficiencies and tax avoidance and evasion in Nigeria and that there issignificant difference between taxes paid by the rich and the poor in Nigeria. The researchers thereforeconcluded that the Nigerian government should do everything possible to ensure that the loopholes in theNigerian tax policy and administration which give room for tax avoidance and evasion are eliminated or reducedto the barest minimum. Hence, the study recommended among other things that Nigerian government should putmechanisms in place for tax effectiveness. This has to do with efficiency in tax collection and accountability onthe part of the officials of government.Keywords: Tax, Nigerian tax system, policy defectiveness, Warren Buffett theory, Tax avoidance and taxevasion.