TAXATION OF ISLAMIC FINANCE IN NIGERIA: THE INTEGRATION OF ISLAMIC TAX SYSTEM AND THE CHALLENGE OF ROBUST FRAMEWORK
Nigeria operates federal system of government wherebyconventional system of financing is accommodated in itslegislations as a result of British colonization. In thetaxation of Islamic financial products, the disparity inprinciples that exist between the conventional financialsystem and Islamic financial system on the tax regimes asit relates to treatment of interest is a fundamental issue fortax purposes. This paper examined taxation of Islamicfinance in Nigeria whereby looked at the integration ofIslamic tax system and challenge of robust framework. Thepaper used doctrinal research method whereby primary andsecondary sources of materials were examined for thestudy. The paper found that the existing framework fortaxation of Islamic financial products in Nigeria isinsufficient; and even the administrative body is notcapable of proper administration of the Islamic tax system.Therefore, the paper recommends for a parallel legalframework for the taxation of Islamic financial institutionsin Nigeria; and a different administrative body. The paperalso recommends for scholarly view (fatwa) on the Zakatpayment on monthly income of employees from public andprivate employment as obtainable in Malaysia.

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