Implications of the Companies and Allied Matters Act, 2020 on the Taxation of Partnerships inNigeria
Keywords:
Partnerships, Taxation of Partnerships, Limited Liability Partnerships, Limited Partnerships, CAMA 2020Abstract
In the ever-evolving landscape of business regulations, the Companies and Allied Matters Act of 2020
(CAMA 2020) brought about a seismic shift in the treatment of partnerships in Nigeria. This article
delves into the implications of the new legal personality structure introduced by CAMA 2020 and its
profound impact on the taxation of partnerships. Adopting a doctrinal research design, this paper
analyzes various literature and legislation on the subject and found that the new legal personality
regime introduced some radical changes into partnership business in Nigeria, necessitating a
corresponding legal adaptation of extant tax laws. This paper concludes that the Federal Inland
Revenue Service new approach toward taxing partnerships as a corporate entity should be embraced
and relevant tax laws should be amended to reflect the legal personality status of partnerships.
