TAX GOVERNANCE AS AN INTEGRAL COMPONENT OF CORPORATE GOVERNANCE: INSIGHTS FROM THE 2025 TAX REFORM ACTS

Abstract

The interface between taxation and corporate governance has gained renewed prominence in light of Nigeria’s comprehensive tax reforms laws enacted in 2025. Traditionally, taxation for many corporate bodies have been treated as a compliance function. However, today taxation has become a core governance concern with significant implications for corporate accountability, transparency, and sustainability. This paper examines the role of tax governance as an integral component of corporate governance in the context of Nigeria’s fiscal framework under the tax reforms laws. The study aims to interrogate the extent to which these laws collectively reshape corporate obligations and emphasised tax compliance as a board-level responsibility. Adopting a doctrinal and analytical approach, the paper evaluates key provisions such as the minimum effective tax regime, mandatory disclosure of tax planning arrangements, e-fiscalisation requirements, and enhanced enforcement mechanisms. The findings reveal that the 2025 reforms fundamentally transform tax compliance from a routine administrative function into a strategic governance imperative. They impose heightened responsibilities on boards of directors, particularly in the areas of tax risk management, transparency, and regulatory engagement. The study further finds that failure to integrate tax governance frameworks exposes corporations to significant financial, reputational, and operational risks. To this end, the paper recommends enhancement and/or institutionalisation of structured tax governance framework for corporate organisations, including board-level oversight through audit committees, investment in digital tax infrastructure, and the alignment of tax strategy with corporate values and stakeholder expectations. It concludes that robust tax governance is indispensable for sustainable corporate performance in Nigeria’s evolving regulatory environment.