Editorial Board


Professor Rafiu Oyesola Salawu

Department of Management & Accounting, Faculty of Administration, Obafemi Awolowo University, Ile-Ife

Managing Editor

Professor Godwin Emmanuel Oyedokun

Department of Management & Accounting, Lead City University, Ibadan, Nigeria

Editorial Board Secretary

Mary-Fidelis Chidoziem Abiahu

Director, Research and Professional Standard, Chartered Institute of Taxation of Nigeria

Editorial Board Members

Professor Chinedum Nathaniel Nwezeaku

Federal University of Technology, Owerri

Professor John Adeoti

Nigeria Institute of Social and Economic Research (NISER), Ibadan

Professor Uche Jack-Osimiri

Faculty of Law, River State University, Port Harcourt

Professor Aruwa Suleiman Akwu-Odo Salihu

Nasarawa State University, Keffi Nasarawa State Nigeria

Dr. Eiya Ofiafoh Ofiafoh (Associate Professor)

Department of Accounting, University of Benin, Benin City, Nigeria

Dr. Stephen Chukwuemeka Mark Abani

MCSA Worldwide Projects Limited, Abuja, Nigeria

Dr. Kenny Adedapo Soyemi

Department of Accounting, Olabisi Onabanjo University, Ago Iwoye, Ogun State, Nigeria

Professor Joseph Uchenna Uwaleke

Department of Banking & Finance, Nasarawa State University, Keffi Nasarawa State, Nigeria

Barrister Chukwuemeka Eze

Faculty of Law, Nasarawa State University, Keffi Nasarawa State, Nigeria

Mr. Simon Nwanmaghyi Kato

Federal Inland Revenue Service, Chairman’s Office, Abuja, Nigeria

Effect of Personal Reliefs and Allowances on Tax Liabilities and Tax Burdens of Individual Taxpayers in Nigeria


Effect of Personal Reliefs and Allowances on Tax Liabilities and Tax Burdens of Individual Taxpayers in Nigeria


Ihendinihu, J. U, Alpheaus, O. E. and Omodero, C. O.


This paper examines the various statutory provisions for granting Consolidated Relief Allowance (CRA) and other tax-free allowances in Nigeria. The objective is to resolve existing disparities in the application of tax law provisions and thus harmonize the rules for granting tax-free reliefs under the Personal Income Tax (Amendment) Act, (PITAA), 2011. Hypothetical data of gross income and relevant domestic circumstances of individual taxpayers were generated. CRAs and other specified tax variables were computed based on provisions of S.33 and the sixth schedule to the Act. Data were analyzed using mean, t-test statistics and ANOVA. Results indicate that S.33(1) and the sixth schedule of the Act produced CRAs that differ significantly, and that the exclusion of tax-free reliefs in S.33(4) of the Act in practice has significant effect on tax liabilities and tax burdens of individual taxpayers in Nigeria. The paper concludes that observed disparities in statutory definitions for CRA and the use of practice guidelines that are inconsistent with clear provisions of tax laws could widen the gap between tax practice and tax statute, and eventually mar the goals for certainty and equity in tax administration. Consistent with judicial decisions, the paper posits that the provisions in paragraphs (1) and (3) of the sixth Schedule to PITAA, 2011 cannot override the clear and unambiguous provisions in S.33(1) of the Act, and therefore recommends among th other policy adjustments, that the definitions of CRA in the 6 schedule should be reviewed to harmonize them with S.31(1) of the statute, and that the other tax-free allowances in S.33(4) should be adopted in practice since they were not repealed in the 2011 Act.