ABSTRACT
The project title: effectiveness of tax
administration in Nigeria is meant to explain in details the administration and management of tax in Nigeria
fails means to enlighten and farouse consciousness on the students who
intend going into the profession on the
challenges besetting effective administration
of tax in Nigeria and practical way by which it can be
combated.
Chapter one
deals with the introduction ,
statement of the problem , scope and
justification of the study , aim and
objectives of the study , research question research hypothesis ad operational
definitions of technical terms.
Chapter two deals with review of related literature
chapter three is on the research methodology adopted addressing the research
problem.
Chapter four presents in precise and logical manner
the presentation, analysis and interpretation of data collected and hypothesis
formulated.
Chapter five
presents the summary, conclusion and proffered recommendation.
TABLE OF CONTENTS
Title page
Dedication
Certification
Acknowledgement
Abstract
Table of
contents
CHAPTER ONE: INTRODUCTION.
1.1
Background of
the study
1.2
Statement of
the problem.
1.3
Objectives of
the study
1.4
Research
questions.
1.5
Scope of the
study.
1.6
Significance
of study
1.7
Research
hypothesis
1.8
Limitation or
study constrain of technical terms.
1.9
Definition of
terms.
CHAPTER TWO LITERATURE REVIEW
2.1 Introduction
2.2 Historical Review of taxation in Nigerian
2.3 Definitions of taxation in Nigerian
2.4 Importance of taxation in Nigerian
2.5 Canon of a good tax system
2.6 Type o f taxes.
2.7 Legal basis of taxation
2.7.1 Taxes collectable
by federal government
2.7 2 Taxes
and levels collectable by government
2.7.3 Taxes
and levels collectable by local government.
2.8 Tax management and administration in Nigerian
2.8.1 Tax
federal board of inland Revenue.
2.8.2
Composition of the board
2.8.3 Power
and duties of the board
2.8.4 Joint Tax
Board.
2.8.5
Composition of joint Board.
2.8.6 Duties of the joint Tax Board.
2.8.7 The state Board of interview of internal Revenue.
2.8.8 Composition of state board of internal revenue
2.8.9 Functions of state board of internal
revenue
2.8.10 Local government revenue committee
2.8.11 Composition of local government revenue
Committee
2.8.12
The technical
committees
2.8.13
Composition technical
committee of federal
board
of Internal revenue.
2.8.14
Function of he technical committee
2.8.15
The technical
committee of state Board of
internal revenue
2.8.16
Composition
of the technical committee
2.8.17
Function of
the technical committee
2.8.18
Joint
state revenue committee
Composition of joint state of revenue
committee
2.8.19
Function of
the joint state of revenue committee
2.8.20
Inspectors of
taxes
2.8.21
Duties and
powers of inspectors of tax
2.8.22
Collectors of
taxes
2.8.23
Scrutinner
committee
2.8.24
Duties and
power of scrutinizer
2.8.25
Body of
appeal commissioners
2.9
Problems
in the administration of tax
2.10
Remedies to the problems of tax
administration in
2.11
Nigeria
2.12
Tax collection in Nigeria
2.11.3
Procedures for
collecting tax from companies
CHAPTER
THREE: RESEARCH METHODOLOGY
3.1
Introduction
3.2
Population
3.3
Simple size
3.4.1 Primary
3.4.2 Secondary
3.5
validity of
research instrument
3.6
method
of data analysis
3.7
constraint in
data collection
CHAPTER
FOUR: PRESENTATION OF THE RESULTS.
4.1
Introduction
4.2
Questionnaire Distribution and collection
4.3
Analyzing
data base on questionnaire collected.
4.4
Hypothesis testing and
decision rule
CHAPTER
FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION.
5.1
Summary
5.2
Conclusion
5.3
Finding
5.4
Recommendation
BIBLIOGRAPHY
CHAPTER ONE
1.1 BACKGROUND
OF THE STUDY
Tax is a major source of government revenue. The
tax system of any country usually has two component. Those are the law and it
administration.
The tax laws are used to determine the liability of
tax payers, the tax rate and the tax base. Tax administration whether effective
or not used to determine the success or failure of any tax system. Different
tax law (regulation, decrees etc) have been enacted in order to regulate the
tax system. The success of any tax system of any country can only be anchored
on effective tax administration for example when a tax payer has been assessed
to tax and the amount of tax to be paid has been determined, the tax is to
be collected at a minimum collection
cost and because an effective tax
administration ensures accountability of the government to the tax payers the
amount so collected should be used to provide basic infrastructure that will be
of benefit to the same tax payers on the other hands, if the administration is
defective, there will be non- accountability, high collection cost, high rate
of tax evasion and tax avoidance (the twin devils) corruption and so on.
Tax is the surest form of revenue among the source
of receive to government because the citizen will always be there even when other source of revenue fail. For example, land
might 80 barren, the oil wells might dry up, corporation might no longer be
profitable but the citizen will always be there to be taxed.
Taxation can also be measured in terms of
effectiveness as a fiscal policy tools.
Ordinary, taxation is used to correct any
imbalances in the economy in order to achieve economic goal and development.
The major objectives of taxation as a fiscal policy tool includes:
1)
It is used to
redistribute income or wealth
2)
It is used to
protect infant industries
3)
It is also
used to discourage the consumption of goods
4)
It is also
used to allocate resources
Therefore, taxation, whether as a source of revenue
or as fiscal policy tool cannot succeed of its administration is defective or
weak. As Tanzi (1980) has pointed out, tax administration plays a crucial role
in determining the real or effective tax system, as opposed to statutory. Tax
system Bird (1991) says “Tax policy change without administrative change is
nothing”.
Considering the importance of effective tax administration,
it is importance to establish a long-range vision for effective and suitable
tax administration in Nigeria
going by the present state of the tax administration in Nigeria. The
purpose of this research is to consider the present tax administration in Nigeria with
the aim of proffering feasibly solution to its shortcomings.
1.2 STATEMENT
OF THE PROBLEM
Tax administration in Nigeria is the focal point of this
study. Obviously there are some recognized problems confronting effective tax
administration in Nigeria.
These problems need to be recognized and solutions have to be proffered to
them. Such problems include:
1)
Inconsistency
of tax policies
2)
Poor legal
structure
3)
Lack of
qualified tax personnel and officers
4)
Poor
information or data Bank and non-computerization of the tax system etc
These and
other problems shall be looked into in this research work
1.3 OBJECTIVE
OF THE STUDY
This study will
be centered on the following:
1)
Analysis of
the problems related to the administration of the tax in Nigeria by
attempting to identify observable problems which make tax administration
ineffective.
2)
Also to seek
explanation to the inhibiting factors in the tax administration.
3)
Why are the
punitive measure put in place by the government has not been effective and
efficiently carried out
4)
Lastly, to
form a basis for making suffusions towards reforming the tax administration in Nigeria
Also, we will look into how taxation as a fiscal
policy can be effective in order to achieve the desired goal of economic
stability.
1.4 RESEARCH
QUESTIONS
Research questions can be defined as the specific
purpose of the study stated in form of questions put forward in order to discover
facts. Some important questions relevant to this research are as follows:
a)
Has taxation
as a fiscal policy took been effective in achieving the stabilization
objectives of the economy.
b)
Why do tax
payers evade tax? Or why is there no voluntary tax compliance among tax payers?
c)
Has the
introduction of tax clearance certificate helped to reduce the high rate of tax
evasion?
d)
Can a tax
payer reduce his tax liabilities without necessary evading tax?
e)
With the
employment of qualified personnel or training of existing officers improve tax
collection?
1.5 RESEARCH
HYPOTHESIS
Hypothesis can be defined as a conjectural or
tentative statement on the relationship between two or more variables.
Hypothesis is usually means to an end for the
purpose of this research; the following hypothesis will be tested for
acceptance or rejection.
(1) Ho: Tax administration/management is not
effective in Nigeria.
H i: Tax
administration/management is effective in Nigeria
(2) Ho: Tax clearance certificate is not an
effective tool to check tax evasion
Hi: Tax
clearance certificate is not an effective tool to check tax evasion.
1.6 SIGNIFICANCE
OF THE STUDY
It helped that this research work will be of great
benefit to the government, tax consultants, policy makers, researchers that
might be interested in making research on this topic, tax administrator’s
students of public finance and taxation and the general public at large.
1.7 SCOPE OF
THE STUDY
This is to appraise how the count could have an
effective tax administration. The appraisal of taxes will be under the direct
and indirect tax system acts have been enacted to regulate the administration
has been shared between the federal, state and local governments.
The result of the appraisal of the strength and
weakness of the present tax system will help in proffering workable solutions
as the way forward.
1.8 LIMITATION
OR STUDY CONSTRAINTS
The study obviously cannot cover all the
geographical area of the country, hence, the Federal Board of Inland Revenue
(FBIR) is used as the case study. Data collection is also limited to twenty
(20) Because of these. The study will only limit to Federal Board Inland
Revenue (FBIR) Ilorin, Kwara State.
1.9 DEFINITION
OF TERMS
1)
Direct Tax:
this is a tax that is levied on the income, profits and gains of individuals
and companies. In a direct tax system, the person who pays the tax bears the
tax burden. Example includes personal income tax, companies income tax,
petroleum profit tax.
2)
Fiscal
Policy: This is a part of government activities that deals with revenue
generation and expenditure in an economy that is the policies that regulate
such activities.
3)
Indirect tax:
This tax is levied on goods and services produced, under indirect tax system,
the tax burden is usually shifted to the final consumer of goods and services.
Examples include import duty, excise duty, value added tax e.t.c
4)
Relevant Tax
Authority: The relevant tax authority is a body responsible under law of a
territory to impose tax on incomes or profits of individuals and companies.
5)
Tax: This is
a compulsory levy imposed on income of individuals and companies by the
government.
6)
Taxation:
This is a system or the process of levying and collection of money by taxes.
7)
Tax
Avoidance: This occurs where a tax payer arranges his financial affair in such
away as to reduce his tax liability such as capitalizing on the loopholes in
tax laws to his own advantage.
8)
Tax
Clearance: This is a document issued to a tax payer after the tax authority is
of the opinion that tax assessed on the income of a person for the three years
immediately proceeding the current year of assessment has been fully paid or
that no tax is due on such income.
9)
Tax Evasion: This
is a dishonest means whereby the tax payer try to reduce his tax liability
through the use of illegal means such as
omission of source(s) of income of a tax payer from his returns etc
10)
Taxpayer:
This is any individual, corporation sole, trustee or executor, having any
income, which is chargeable to the tax under the provision of the act.
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