CHAPTER ONE
GENERAL
INTRODUCTION
1.0.0:
INTRODUCTION
In recent years, the
capacity and speed of communications networks are moving exponentially. The
capacity and speed of communications networks have increased over the years and
this is not unconnected with technological growth and developments. The basic
tools for these technological growth and
developments are telecommunications1 and
electronic commerce2.
the engine of the world
economy with transactions in billions of dollars being done everyday over the
telephone and the internet. Telecoms and e-commerce are two of the few
industries that continue to grow and develop despite the economic situation in
the world. Developments in the two industries come everywhere regardless of
geographical position, government and the state of economy. Telecoms is one of
the most important infrastructures essential to the socio-economic well being
of any nation. The globalization of world economy has further amplified the
importance of telecoms to the economy. The phenomenal growth of Global System
for Mobile Communications (GSM) since its introduction in Nigeria also confirms
this.3Because of the pivotal roles of telecoms and e-commerce in the economic growth
and development, contemporary legal issues4
evidently arise, which need urgent attention to ensure the effectiveness,
efficiency and contributions of telecoms and e-commerce to the world economy.
The resultant effect of this is the need to reform telecoms sector, hence, the
liberalization and privatization of telecoms sector.
Electronic commerce is still in its infancy and
according to a research conducted by Annette Nellen, e-commerce represents less
than 1% of retail sales.
will soon grow to
hundreds of billions of dollars annually.5 In order to ensure that
telecoms and e-commerce of any given nation meet up with global standards,
reforms and regulatory frameworks become inevitable. This is because the role
of telecoms and e-commerce in an effort to achieve greater efficiency in international
trade and commerce for economic growth and development cannot be
ever-emphasised. Aside the need for reforms and regulatory frameworks for
telecoms, the embryonic nature of e-commerce implementation in Nigeria and some
other developing economies have posed serious legal challenges to taxation of
telecoms and e-commerce, and these challenges centre around a number of
questions such as:
Whether the current regulatory regime in
the Nigerian telecommunications industry is capable of enhancing consumer
protection and good quality of telecommunications services?
Whether the Nigerian laws are adequate
to enable e-commerce to fundamentally compete with the traditional mode of
delivery of tangible products?
Whether the current tax laws in Nigeria
are able to blend with the legal regime of telecommunications and electronic
commerce?
Whether the law and policy in the
administration of tax have been able to address tax avoidance and evasion in
telecommunications and electronic commerce?
Whether the Nigerian law is adequate to
address the challenges facing the tax aspect of telecommunications and
electronic commerce?
1.1.0:
BACKGROUND TO THE STUDY
The Nigerian
telecommunications industry has witnessed rapid growth in recent years. This
has positively impacted on the rate of subscription of telecommunications
services. The rapid growth in telecoms industry has, however, greatly affected
the quality of telecommunications services and protection of telecoms
subscribers. The need to have regulatory reforms, therefore, cannot be
over-emphasised. Similarly, the traditional mode of business transaction is
physically-oriented, as compare with e-commerce which is virtual in nature. The
introduction of e-commerce to business transaction is therefore capable of
affecting the traditional mode of business transaction. Hence, the current laws
in Nigeria are fashioned towards physically-oriented business transactions and
therefore there is a need for adequate laws which will cater for both
physically-oriented and virtual business transactions. The current Nigerian tax
laws do not envisage the emergence of e-commerce. However, since e-commerce is
imminent in meeting global standard in business transactions, a new tax regime
is necessary to cater for taxation of e-commerce; otherwise the purpose of tax
as a source of government revenue may be eroded.
There are lots of
materials both local and foreign on telecommunications, e-commerce and
taxation.
material for the
consumption of interested researchers. The research encompasses legal aspects
and taxation of telecommunications and electronic commerce. The available
literature consists of materials on telecommunications, electronic commerce or
taxation or a combination of two of them. However, this work deals with the
regulation and taxation of telecommunications and electronic commerce.
1.2.0:
OBJECTIVES OF STUDY
The main objective of
this study is to analyse the contending issues relating to legal, regulatory
and institutional frameworks for the taxation of telecommunications and
electronic commerce in Nigeria. There are series of problems and challenges
associated with taxation of telecommunications and electronic commerce such as
high and multiple taxation, tax evasion and avoidance and enforcement
challenges, among others.
The following
are therefore the immediate objectives of this research:
To examine the law and policy regulating
telecommunications sector with a view to finding solutions to challenges facing
telecoms sector in order to improve quality of telecoms services and ensure
adequate protection to telecoms subscribers.
To identify the inadequacy in the
Nigerian law as it affects e-commerce and suggest ways of ensuring efficient
e-commerce that would have positive impact on the mode of business
transactions.
For complete
academic research materials, visit www.researchshelf.com
and note also that our mobile app will soon be launched where you can download
it and view all our academic research materials including past questions and
answers, assignments, e-books etc..
No comments:
Post a Comment