OLATOYE ADEBAYO KAREEM

Law

At the Law department office

Appointment on Visitation important

Topic: International Commercial Arbitration Law

Description: It is an area of law dealing with the use of alternative dispute resolution mechanism, referred to as arbitration to resolve disputes arising from international commercial transactions. The expeditiousness of this mechanism and its processes make the mode of dispute resolution methodology very attractive to parties to international contractual transactions.

#	Certificate	School	Year
1.	Ph.D (Law)	Faculty of Law, Lagos State University	2016

ANALYSIS OF THE TAX TREATMENT OF NON-INTEREST BANKING PRODUCTS IN NIGERIA.

Since the adoption of Islamic Non-interest alternative financial system in Nigeria, many Islamic banking institutions have emerged and are currently doing well enough to pay various taxes to the Government of Nigeria. The potential tax revenue generating capacity of these institutions is one of the fiscal incentives or rationale for the adoption and regulation of the alternative non interest banking system in the first place. The problem however is that, while the conventional banking counterparts in the country are taxed based on the volume of interest on loan generated, the same cannot be said of Islamic banking institutions that do not charge interest on loan intermediation but rather operate on profit and loss basis. Moreover, there is also the problem of double taxation that the existing tax regime foist on products of Islamic banks given their peculiar operational models thereby getting at the root of the principle of tax neutrality, an essential feature of any tax system. The tax authorities FIRS came up with the regulatory guidelines of 2012 and 2013 with a view to resolving these problems. These work seeks to analyze these regulatory guidelines to examine how far it has resolved the problems. It also examines the controversial conceptual issues of equating profits to interests. It is concluded that the guidelines have to some extent solved the problems but more efforts need to be made by the tax authorities in term of tax reforms to ensure that the problem of tax neutrality is permanently resolved so as to ensure that Islamic banks pay tax duly in contribution to the economy but the institutions should not be weighed down by double taxation, that their conventional counterparts do not experience, so that they can survive and continue to contribute economic development.Already accepted for publication.

OLATOYE KAREEM is a Professor at the Department of Law

OLATOYE has a Ph.D in Law from Faculty of Law, Lagos State University