TAXATION IN NIGERIA AND OFFA LOCAL GOVERNMENT AREA

TABLE OF CONTENTS

TITLE PAGE

CERTIFICATION

DEDICATION

ACKNOWLEDGEMENT

CHAPTER ONE: INTRODUCTION

1.1        INTRODUCTION

1.2        AIMS AND OBJECTIVES OF THE STUDY

1.3        SIGNIFICANCE OF THE STUDY

1.4        STATEMENT OF THE PROBLEMS

1.5        RESEARCH QUESTION

1.6        HYPOTHESIS FORMULATION

1.7        SCOPE OF THE STUDY

1.8        LIMITATION OF THE STUDY

1.9        PLAN OF THE STUDY

1.10     DEFINITION OF TERMS

CHAPTER TWO: LITERATURE REVIEW

1.1        INTRODUCTION

1.2        STRUCTURE OF NIGERIA TAX MANAGEMENT

1.3        TAX EVASION AND AVOIDANCE

1.4        PRINCIPLES OF GOOD TAX SYSTEM

1.5        REASON WITH GOVERNMENT TAXES SYSTEM

1.6        TAXES LEVELS COLLECTIBLE BY LOCAL GOVERNEMNT

1.7        FACTORS THAT ENHANCE EFFICIENCY OF TAX ADMINISTRATION IN A LOCAL GOVERNMENT

1.8        TAX AUTHORITY

1.9        PROBLEMS OF TAX ADMINISTRATION IN THE LOCAL GOVERNMENT

1.10     POSSIBLE SOLUTION TO THE PROBLEMS OF TAX ADMINISTRATIONS

CHAPTER THREE: RESEARCH METHODOLOGY

3.1        INTRODUCTION                     

3.2        RESEARCH DESIGN

3.3        SOURCE OF DATA COLLECTION

3.4        DATA COLLECTION INSTRUMENT

3.5        ADMINISTRATION OF DATA COLLECTION INSTRUMENTS

3.6        POPULATION OF THE STUDY

3.7        SAMPLE SIZE

CHAPTER FOUR: DATA ANALYSIS AND DISCUSSION       

4.1     INTRODUCTION

4.2 OFFA LOCAL GOVERNMENT AREA ESTIMATE OF RECURRENT REVENUE

4.3   ANALYSIS OF DATA COLLECTION THROUGH COMPONENT BAR CHART

4.4   REVISED APPROVED

4.5   COMMENT

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1         SUMMARY

5.2    CONCLUSION

5.3   RECOMMENDATION

REFERENCE

CHAPTER ONE

INTRODUCTION

        Several attempts have been made to after a comprehensive individuals have come up with different definitions of tax, which have the same meaning.

        Tax is a compulsory contribution imposed by the government on the people in the country. Tax is also a compulsory payment levied on private individual and organization made by government to raise revenue to finance expenditure on publics goods and services and to control the volume of private expenditure in the economy.

        David, W. Peace in the Macmillian dictionary of modern economic defined taxation as a transfer of resources from the private to the public sector in order to accomplish saome of the nation’s economic and social good. It is a compulsory levy by the government of the country through an approved agent usually the federal board of inland revenue (FBIR) against 5the income or wealth of partnership or individual.

        Taxes are the most important sources of government revenue and major means of financing government activities for the benefit of the citizens of the different countries. Taxes play a relative minor role in ancient world. Taxes in consumption were levied in Greece and Rome; taxes are used as a means of raising additional funds. In time of war, taxes of net worth would be temporarily imposed. For long time these net worth taxes were confine to area properly but they were extended to other element of net worth. Real estate transactions were also taxed. In Greece free citizen has different tax obligation from slaves and income the tax law difference hale between nations and residence of conquered territories.

In the middle ages, many of these ancient taxes especially among the leaves vanished and gave way to a variety of obligatory services and a system of aids; the main indirect taxes were transit duties and market fees. In the cities, the concept developed of a tax obligation encompassing all resident the burden on certain foods and beverage was intended to be borne by consumers and party by producer’s trade men. During the later part of the middle age some German and Italian cities introduced direct taxes and head taxes to the poor and net worth or occasionally crude income  taxes for the rich. The development of taxation in recent times can be summarized by general statement although alliance must be made for considerable national difference; the level of most taxes has risen substantially so as rations like tax revenue to the national income, taxes both of individual and corporations occupy a leading position in modern tax systems. The income tax ceased to be rich man tax; It is complimented by a tax or net worth. Taxation came into existence at different data to various part of the world. In Nigeria it was in 1904, in the early days government imposed taxes to raise revenue only to cover the cost of administration and defences such as the maintenance of law and order at home, defences against external enemies.

        However taxes are no longer imposed merely to cover unavoidable cost of administration but to cover the cost of service provided by the state.

1.2   AIMS AND OBJECTIVES OF THE STUDY

        This study aim at examining taxation in Nigeria and Offa local government area, in particular with the emphasis on the general scope, classification, principle and concept of taxation. It will examine the different administrative bodies charged with collection of tax with duties and composition, also the importance of a tax as a source of government revenue will be elaborated

        It is also aimed at analyzing the problem encountered in collecting taxes in Nigeria and the most weekly solution ensure effective and efficient use of taxes in Nigeria.

1.3   SIGNIFICANCE OF THE STUDY

        The study is important to the general public and the government. It educate people more about the importance of taxation to he economy i.e since only 60% government revenue is from the source available in the country but the removing percentage is from taxation for development and provision of infrastructure. And as such as encourage people to pay their tax accordingly. It will contribute taxes and possible ways out of short-comings.

1.4   STATEMENT OF THE PROBLEMS

        Over the years, it seems to be some problems facing by the local government in as containing their source of revenue through taxation, local government faces these problems when the people in the community are trying to avoid the payment of tax e.g some people who rent a shop in market square refuse to pay their taxes fee for the shop they have rented.

        Another problem is the identification of the areas in which the taxes can be collected like bicycle license, motorcycle license, kiosk license, birth and death registration fee, square mill license e.t.c

1.5   RESEARCH QUESTIONS

        Such questions includes;

1.  What is the importance of taxation to the local government?

2.  How can the local government ascertain the effective collection of tax in the community?

3.  How can the  local government identify all the areas in tax can be collected?

4.  How can the local government educate the people in their area to pay taxes?

5.  How can the local government educate the people in their area to pay taxes?

6.  How can the people within the local government area know the benefit of paying taxes?

7.  How can the problems facing tax administration be solved?

1.6      HYPOTHESIS FORMULATION

In the research topic “TAXATION AS A SOURCE OF REVENUE TO THE LOCAL GOVERNMENT” the two main variables are, “TAXATION AND GOVERNMENT REVENUE”.

        Taxation is the independent variables while “government revenue” is the dependent variable because the government revenue in the topic is depending on taxation as it source. Also all the government expenses depending on its revenue realized and which taxation is one of the revenue.

1.7      SCOPE OF THE STUDY

In Nigeria, there are many states and each state has its own local government. Example is Kwara state with sixteen local governments and because of this Offa local government will be visited, the study has been restricted to Offa local government only.

1.8      LIMITATION OF THE STUDY

These are a short coming that arises as result of problems encountered in the course of writing this project. Some of this limitation is the problem of non-availabity of adequate and reliable information and statiscal date for the study. The textbooks, journals and government publications are the most really available source of information. Also there is financial constrain. Because there is not enough money to carry out the project effectively and there is also a time constrain as limitation to the study.

1.9      PLAN OF THE STUDY

In chapter one, the following will be considered. In the introduction of the study, purpose of the study, significance of the study, statement of the problem, research questions, hypothesis formulation, scope of the study, limitation and as well as the plan  then finally definition of the terms.

    Chapter two consists of literature review, structure of Nigeria tax system, tax planning, tax evasion, principle of a good tax system, the reason why government levies.

    Chapter four is presentation analysis of data. Where the sources of data was desired and lastly, summary, conclusion and recommendation

1.10 DEFINITIONS OF TERMS

The work is one of the important part of this research work, because it is necessary to defined terms to facilitate comprehension, correspond with dictionary meaning yet for the purpose of this project, it is important to defined and  explain source of the words.

1.  TAXATION INCOME: This refers to the total income of tax payer that are subject to after deduction the relief.

2.  TAX EVASION: This is deliberate liability by understanding a source of income authority\

3.  TAX INCIDENCE: This is the effect of a tax and were burden of a tax finally rests.

4.  DIVIDEND: This is the amount received by a person on an investment made by him

5.  EARNED INCOME: This is an income derived by an individual from trade business. Vocation or form employment by way of person

6.  UNEARNED INCOME: This refers to income derived from investments made by an individual from trade business, vocation or from employment by way of person

7.  PAY AS YOU EARN: This is a system whereby the employers deduct tax every month from their employees salaries or wages at the payment on behalf of the revenue authorities.