No country has ever thrived without a functional tax system; in fact the effectiveness of the tax system can be a measure of a country's development, hence the drive to improve Nigeria's tax to GDP ratio from its present low doldrums. Taxation encapsulates sets of rules, regulations and procedures with governmental arms interacting with one another to generate funds for public spending. Tax remains a major (traditional) source of government revenue. Proceeds enable government perform its functions, to: maintain law and order, provide infrastructure and social services (health, education, social welfare, etc), and protect the country’s territorial integrity. Tax is also a veritable instrument of social engineering: for example, to achieve wealth redistribution and foster economic growth and development. Adams Smith in his famous treatise, The Wealth of Nations (1776) propounded the four major canons of a good tax system as equality, convenience, certainty and economy.
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