context of the Nigerian oil and gas industry. In addition to the instances above, the prospects for “ continued ” legal transplants in the oil and gas industry are particularly high because the prospective rules originate from Canada - which shares some socio-political similarities with Nigeria. Even though the two jurisdictions operate two variants of democratic systems of government, both jurisdictions have elements of federalism in their systems of government. 82 Specifically, the Preamble to the Constitution Act, 1867 states that the provinces of Canada are “federally united” under the Crown. 83 As a result, the responsibility for governance is shared by the federal, provincial and municipal governments. 84 This federal nature of the Canadian system of government is very similar to Nigeria’s federalism. Being a federal republic, Nigeria also has “federal state” features that are similar to the Canadian structure . 85 Thus, certain roles performed by provincial governments can be substituted for state governments subject to statutory restrictions present in Nigerian oil and gas legislations and Nigeria’s legal system as a whole. Furthermore, the similarities between the Canadian and Nigerian oil and gas industry as discussed in 1.3.2 also lend additional credence to the possibility of transplants occurring in the context of Nigeria’s oil and gas industry. Thus, this thesis contends that the knowledge of how the Canadian oil and gas industry resolves certain matters in its petroleum industry can be transplanted to enable Nigeria to develop more effective concepts for resolution of similar problems in its oil and gas industry. Given that the thesis proposes the use of the tax system for reforms, the next section looks at tax transplants as a category of legal transplants. 3.3 Tax Transplants Literature The term “tax transplant” has been used in describing the application of legal transplants to tax law. The concept of legal transplant as an approach for policy making has been discussed by different scholars and applied in comparative tax law scholarship. 86 In terms of definition, tax 82 Canada operates a parliamentary democracy while Nigeria operates a presidential democracy. See Constitution Act , 1867, 30 & 31 Vict, c 3, reprinted in RSC 1985, Appendix II, No 5, s 17 [Constitution Act, 1867] for Canada and Constitution of the Federal Republic of Nigeria 1999, LFN 2004, c C23, s 130 (2) [ 1999 Constitution ] for Nigeria. 83 Constitution Act, 1867, ibid at Preamble. 84 Constitution Act 1982, being Schedule B to the Canada Act 1982 (UK), 1982, c 11, ss 91, 92. [ Constitution Act, 1982 ]. 85 Nigeria is divided into 36 states and 1 territory. 86 Carlo Garbarino, “ Tax Transplants and Circulation of Corporate Tax Models ”, (2009) Bocconi Legal Studies Research at 1 (for alternative citation see also (2011) 2 Brit Tax Rev 159) [Garbarino, Tax Models ]; Jinyan Li, “Tax Transplants and Local Culture: A Comparative Study of the Chinese and Canadian GAAR." (2010) 11:2 Theor Inq L 655 [Li, Tax Transplant ]; Irma Johanna Mosquera Valderrama, “Legal transplants and comparative law” (2004) 2 J Int’l L 261.
68 transplants refer to the process of “transplantation of tax laws from one country to another.”
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