TABLE OF CONTENT
Title
page
Certification
Dedication
Acknowledgement
Table
of Contents
Chapter
one: Introduction
1.1 Background
of the Study
1.2 Statement
of the Research Problem
1.3 Objective
of the Study
1.4 Significance
of the Study
1.5 Research
Questions
1.6 Scope of
the Study
1.7 Limitation
of the Study
1.8 Study
Plan
1.9 Definition
of Key Term
CHAPTER
TWO: LITERATURE REVIEW
2.1 Definition
of Local Government
2.2 Reason
for the Creation of Local Government
2.3 Function
of Local Government
2.4 Sources
of Revenue of Local Government in Nigeria
2.4.1 Definition
of Taxation
2.4.2 Characteristic
of Tax
2.4.3 Types of
Tax
2.4.4 Effects
of Tax Evasion on Local Government
2.5 How tax
Awarded and Evaded
2.6 Reason
for Ineffective Tax Collection
2.7 Importance
of Prompt and Efficient Tax
2.8 Taxes and
Levies Collected by Local Government
CHAPTER
THREE RESEARCH METHODOLOGY
3.1 Brief
History of Local Government in Nigeria
3.2 The
Historical Background of Isin Local Government
3.3 Research
Procedure
3.4 Method
of Data Collection
3.5 Population
and Sample Size
3.6 Research
Instrument
3.7 Sampling
Techniques
3.8 Method
of Data Analysis
CHAPTER
FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Discussion
of Analysis
4.2 Hypothesis
Testing
4.3 Interpretation
CHAPTER
FIVE: SUMMARY, CONCLUSION & RECOMMENDATION
5.1 Summary
5.2 Conclusion
5.3 Recommendations
Bibliography
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
The
socio economic and political well beings of individual in the society are the
responsibilities of government for any government to achieve this aim
effectively, there is need for such a government to decentralize its administrative
system on this: federal government state government and local government different
taxes are assigned to different levels,
The
local government has been change with the administrative and development responsibilities
of the grassroots level; while valuable literature and practice has developed
over the years on these issue according to Framecinwa (2001) local government
is define (in a democracy) as a government of the local people (community) by
the local materials and resources e.g taxes, rates, donations, grant from
federal government e.tc for the benefit of those leaving in a particular local
area from this defination one can deduce that a government authority was local
materials and reource to finance its projects. These local material and
resource include the various from of taxes available to the local government
authority. Because of the peculiarity of the local government authority to the
welfare of the people at the grass roots, that is only some functions are
delegated to the local government in order to enhance distribution to local
resources for rapid growth and development some of the function include:
establishment and maintenance of markets, motor park and public convenience
e.t.c
Oyebanji
(2005), defines taxation as a compulsory levy by the government of any country
through and appreciate agency, on all incomes, good services and property of an
individuals partnership, executor trustee and corporate body. It can also be
define as a compulsory payment imposed by individual with uniform economic
frontiers for legitimate functions for various legitimate function of the
state.
Government
imposes taxes on its citizens to enable it obtain the required tax revenue to
finance its activities, such as payment for public service and other social
responsibilities, once it is levied on the tax payers, they must pay it and if
anyone should default, there are some tax offenders. Taxes are not imposed purposely
for contering upon; rather a tax payer has special benefit for providing the
local government with fund necessary for general administration of the country.
Rather
than the tax payers paying promptly the taxes variously due on them, most of
them engage in tax evasion which consequently learning about a drastic fall in
the tax revenue generated the local government and this invariable has some
adverse economic implication in the financing and administration of the local
government.
Evasion
(illegal methods of reducing ones tax liability, this posse a great threat and
effects development these ugly trends, the authority of local government must
be prepared to fight the massive tax evasion among he indigenes.
1.2 STATEMENT
OF THE RESEARCH PROBLEM
There
is nothing that has merit that will not have demerit. As a result of this,
efficient tax collection has effects in local government. The no payment of tax
revenue to local government (i.e revenue due to a tax payer) was a significant
implication in both the people of the local government in question terms of
development and also hinders the local government authority in carrying out its
responsibilities. In every local government, a very small amount is collected
as taxes.
It
is therefore, obvious that in most local government, people are just evasion
without knowing the implications. The tax payers are not conscious of their
duties and obligations by evading taxes some of
them believed that they are paying the money for nothing or to one
particular person (i.e either the tax collectors to the local government
chairman). No there are many derivatives benefits. These people are not award
of the benefits they will derive from pay tax. The money (revenue) realized
from the taxes is being using to provide social and basic amenities general
administration and to stimulate growth and development of the local government.
1.3 OBJECTIVES
OF THE STUDY
The
objective to achieve at the end of this study include primary and secondary
objective viz: the primary objectives evaluate the relationship between
literature and practice of tax revenue in local government of Nigeria and to
determine various ways of improving the efficient and effective means of tax
revenue collection due to the local government.
The
secondary objectives are as follows:
To
identify the various taxes sources that are available to the local government
authority to identify those one usually collected by the local government authority
To
examine the importance of tax revenue according to the local government
authority.
To
ascertain the financial implication on the current situation
To
make recommendation from the funding realized in the course of carrying out the
project work.
1.4 SIGNIFICAN
OF THE STUDY
The
essence of this research work is to evaluate relationship between literature
and practice of the revenue in Isin local government area of Kwara state and to
identify the various types of taxed and levies being collected by the local
government. Although, various researchers had been carried out in the past to
uncover the various problems encountered by the local government in terms of
problem associated with efficient collection of tax revenue, tax evasion as
well as tax avoidance by the local people (tax payers) which has significant
effect on the local government. It is hope carryout the research the aforementioned
problems identify by the last researcher and to explore every avenue on how to
sensitize or enlighten the tax payers at the grassroots on the importance of tax revenue an how to
ensure prompts collection as well as to make recommendation from the finding
realized in the course of carrying out the project work that will be assistance
to both present and future chairman and to staff especially tax collectors and
officers to Isin local government authority and other authorities throughout the federation.
1.5 RESEARCH
QUESTION
In
other to provide solution to the research problem identified to achieve the
purpose of this study; the following research hypothesis are formulated:
H0: Null hypothesis
H1: Alternative hypothesis
i.
H0: There is no significant relationship
between literature and practice as regard tax revenue to local government of Nigeria.
H1:
There is no significant relationship between literature and practice as regard
tax revenue to local government of Nigeria
ii.
H0: Tax avoidance constitutes
constraint to the proper collection of tax revenue acruning to the local
government
H1:
Tax avoidance constitutes constraint to the prompt collection of tax revenue accruing
to the local government.
1.6 SCOPE
OF THE STUDY
The
research work is focused on local government administration in terms of relationship
between literature and practice tax revenue as an important source of local
government income.
Furthermore,
this research is focused principally on the office of the chairman of the local
government (Isin), the finance department, the tax revenue collectors
department the civil servant, the market woman and men and other people between
year 1999 -2005.
1.7 LIMITATION
OF THE STUDY
The
researchers were faced with some constraints the chief among them is time
constraint. The time scheduled for the national economy. Another problem that
was encountered was financial constraints. Researchers were faced with serious
financial constraints due to the huge amount involved to get the primary data
hence, eventually resulted inadequacy of the primary data.
Also
there was reluctance from the tax officials to part with their taxed and other
revenue data. Lastly the response rate of the questionnaire that was the
response rate of the questionnaire that was administrated to the local
government staff more so, it is fundamental to state clearly here that whatever
suggestion that come up as a result of this research work is expected to be
used by the local government that deals and provides services to the rural
dwellers who are majority of the nation’s populace.
1.8 STUDY
PLAN
The
study is divided into five chapters as follows
Chapter
One: there is a general introduction of the topic, background to the study, significant
face of the study, research question, and scope of the study, limitation of the
study, study plan and definition of key terms.
Chapter
Two: this chapter contains the literature review definition of local government
reason for the creation of local government function of local government
sources of revenue for local government in Nigeria, definition of taxation,
characteristic of tax, types of taxes, effects of tax evasion on local
government, how tax are avoided and evaded, reason for ineffective tax
collection, importance of prompt and efficient tax and taxes and levies
collectible by local government. Chapter Three: the chapter three explains
brief history of local government in Nigeria the historical background of Isin
local government, research procedure, method of data collection, population and
sample size, research instrument, sampling techniques and method of data
analysis. chapter four: this chapter contains discussion of the analysis
hypothesis testing and interpretation.
Chapter
Five, this chapter contains the summary of the funding conclusion;
recommendation bibliography which believe would improve the evaluation of the
relationship between literature and practice of tax revenue of local government
in Nigeria.
1.9 DEFINITION
OF KEY TERMS
TAX: This
can be defined as a compulsory payment imposed by government on income, capital
and consumption of individuals within a nation economic frontier for various legitimate
function of the state (Abdulraheem 2006)
TAXATION:
This is a system raising money by taxes (Ariwodola,1999)
TAX LAWS:
it is in body of rule under which the government of a country has right to
chain part if a tax payers income (Fumakiunta, 2000)
TAX
AVOIDANCE (Tax Mitigation): this is a legitimate and legal ways of paying less
tax or not paying and legal ways of paying less tax or not paying at all (Oyebanji,
2006)
TAX PAYER:
This is the person who with pay the tax to the appropriate tax authority (Ola,
1999).
TAX
EVASION:- This is an illegal method of reducing one’s tax liability, such as
declaring lower income or refusing to pay all together, (Ishola, 2002).
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