TABLE OF CONTENT
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
1.2
STATEMENT OF THE PROBLEM
1.3
OBJECTIVE OF THE
STUDY
1.4 RESEARCH QUESTIONS
1.5 RESEARCH HYPOTHESIS
1.6
SIGNIFICIANCE OF
THE STUDY
1.7
SCOPE AND
LIMITATIONS
1.8
DEFINITION OF
TERMS.
REFERENCES
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 DEVELOPMENT OF INCOME TAX IN NIGERIA
2.2
OBJECTIVES OF INCOME TAXATION.
2.3
QUALITIES OF A
SYSTEM OF GOOD TAXATION
2.4
ADMINISTRATION OF
INCOME TAX IN ANAMBRA STATE.
2.5
PROBLEM OF INCOME
TAX ADMINISTRATION AND COLLECTION MACHINEY
REFERENCES
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1
RESEARCH DESIGN
3.2
POPULATION SIZE
3.3
SAMPLE SIZE
DETERMINATION
3.4
TYPES OF DATA
3.5
SOURCES OF DATA
3.6
DATE LOCATION
3.7
METHOD OF DATA
PRESENTATION
3.8
METHODS OF DATA
ANALYSIS
REFERENCES
CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS
4.1 DATA ANALYSIS TECHNIQUES
4.2
IN THE TABLE
SHOWS THE RESPONSES OF THE RESPONDENTS WHEN ASKED TO PARTICIPATION IN TAX
COLLECTION.
4.1.2
EQUALITY OF THE EXPECTED AND ACTUAL RETURNS FROM TAX COLLECTORS
4.3.1
HINDRANCES TO REVENUE
4.1.4
TREATEMENT OF UNDER ASSESSMENT
4.1.5
TRETMENT OF TAX AVOIDANCE
4.1.6
FRAUD AND DISHONESTY IN TAX ASSESSMENT
4.2
TEST OF HYPOTHESIS
CHAPTER FIVE
5.0 SUMMARY
OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY OF FINDINGS
5.2 RECOMMENDATION
5.3 CONCLUSION
BIBIOGRAPHY
APPENDIX
QUESTIONNAIRE
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
A
tax could be defined as a compulsory payment levied on individuals by government
or paying a specific percentage of their earnings or a specific amount of money
in order to raise revenue for development purposes.
A
tax according to Agyei (1985:2) defines tax as “the transfer of resources from
the private sector to the public sector in order accomplish some of the
nation’s economic and social goals”. Well, the primary economic goal of
developing countries is to increase the rate of economic growth and hence the
income per capitals which will lead to higher standards of living.
A
goals which will be achieved with the introduction of tax are: provision of
additional basic government services, particularly in education, public health
and transport which are imperative for the growth of the rest of the economy.
Personal
income tax was first introduced in Nigeria I
1904 by the late Lord Lugard, when the community tax operative in
Northern Nigeria. Formerly. Nigerian cheerfully paid their taxes in kind of
rendering free services such as clearing the bush, digging put toilet, well etc.
for the benefit of the community as a whole failure to render such services
usually resulted in seizure of property which might be reclaimed on payment of
money.
In
1917, Lord Lugard made certain changes which culminated in the native Revenu
ordinance, it was the (1917) ordinance that was extended to the Eastern Nigeria
in 1928. the stiff expositions was also made it the end of 1939 chief Okugo of
Oloko carried out the instructions laid down by the British Administrations on
a new way of taxing income of individuals. This led to remour that a new system
of taxation will be introduced. Its later consequence culminated to Aba women
Riot against the British Administration. Meanwhile, in the year 1799 it was
introduced by famous British king known as William and catering for government
expenditure.
Income
tax was very effective in Northern Nigeria but finally has come to stay in
Nigeria today. The Raiseman fiscal commission of 1958, recommended the
introduction of basic principles for taxing income of persons other than
companies. This recommendation was embodied in Nigeria constitution order in
council in (1960) and which formed the basis of the income tax management Act
(1961).
By
Untue of Edit (6) of 1970, the Board of internal Revenue came into being in
effect, the Board became an organ charged with the responsibility of carrying
out broad policies of tax administration in Anambra state.
1.2 STATEMENT OF THE PROBLEM
These
problem hinder the provision of various services from security to economic
services for the citizens. Though the funds which would have been collected are
not available to the government thereby creating stability of the economy.
Some
of the problems are easily enumerated as stated below.
(i)
Lack
of staff and inputs such as station eries, vehicles and effective legislation
to couer the tax officials.
(ii)
Lack
of appropriate incentives to officials and logistics supply for effective tax
drive.
(iii)
Inadequate
enlightenment to tax payers.
(iv)
Lack
of adequate information to tax payers services.
(v)
Some
tax payers are not prepared to pay their tax at will unless they are caused
which gives rise to their coming.
(vi)
Some
tax payers feel that the money they paid as tax is no longer used for what it
is meant such as roads, water supply, electricity, bridge etc and as a result
they feel reluctant to pay higher taxes or not paying at all.
(vii)
Some
tax pay are hostile to the official, example – the Mkpume Akputakpa case in
1971 in which Mr. Njoku was brutally murdered.
(viii) Difficulty in identifying who are the
tax payers.
(ix)
failure
to back up with the tax requirement.
(x)
Problems
of lacking the tax payers.
1.3 OBJECTIVE OF THE STUDY
The main purpose of this
research work is to find out those problems hindering tax and this could be
obtained by the application of the following methods.
(a)
To
know whether the individuals are actually under assessed or over assessed.
(b)
To
know whether the tax collectors are really collecting the much expected revenue
or not.
(c)
To
find out the efforts made by the board of Internal Revenue in educating people
on the need to pay their taxes as and when due.
(d)
To
find out why people avoid paying tax.
(e)
To
know also how tax authorities are determining the tax liability (assessment
individuals)
(f)
To
find out whether the caliber of people recruited by the board of internal revenue
as tax collectors and agents have any direct effect on efficiency of collecting
tax
(g)
To
know how the board of internal revenue is making an effort to create awareness
through the mass media.
(h)
To
know if the introduction of tax clearance certificate (TCC) has really improved
the tax collection in the state.
1.4 RESEARCH QUESTIONS
The
researcher tends to verify the following operations in the board of internal
revenue through the research questions.
v Does the tax authority assess
individuals before imposing tax on them?
v Do this tax payers pay their taxes as
and when due?
v Are all the money collected properly
accounted for?
1.5 RESEARCH HYPOTHESIS
i. Ho: Tax evasion or fraudulent practices of tax
collection is not a problem militating against tax collection.
Hi: Tax evasion or fraudulent practices of tax
collection is a problem militating against tax
collection.
ii. Ho: Under assessment is not a hindrance to
enhance tax collection.
Hi: Under assessment is a hindrance to enhance
tax collection.
iii. Ho: Avoidance of tax is not a problem of
personal income tax
Hi: Avoidance of tax is a problem of personal
income tax.
1.6 SIGNIFICANCE OF THE STUDY
The
importance of this study is to know problems of personal income tax collection
in Anambra State, Now, that the nation is no longer enjoying the oil boom,
there is the need for the government to find some practical ways of generating
money with which they will use in financing their programmes.
The
study of personal income tax has ways of benefiting the government and the
people of the state. Solutions preferred for solving the problems of taxes,
especially income tax shall be with be available to the government to finance
more developmental programmes. The people will then benefit indirectly from the
result of this study.
This
case also provides reference material for educational purpose. The board of
internal revenue and its different offices holders can improve upon their work
by the following recommendation of this study.
1.7 SCOPE AND LIMITATIONS
SCOPE: This study is particularly focused
on Awka South Local Government which comprises the following autonomous
communities namely, Awka Town, Amowbia, Nibo Nise, Mbaukwu, ad Isiagu with
their headquater at Awka.
The
researcher looks at the way the tax evaders are being treated and statistical
records of some tax payers in Awka South local government within the
Jurisdiction of the Board of internal revenue Awka in Anambra state.
LIMITATION:
As mentioned earlier, the two outstanding constraints are finance and staff not
co-operating.
FINANCE:
In view of the economic crunch that is passing through, it is very
difficult to have enough money to achieve one’s crucial desires.
A
research of this nature involves money. A lot of money is require for typing,
running of questionnaire, traveling to places for the project, yet there are
competing alternative requiring money.
However, despite the impediments, the
research went on fine.
It
is equally necessary to mention the non challant attitudes of respondents.
However, the above limitations did not destroy the focus of this study.
1.8 DEFINITION OF TERMS.
PERSONAL INCOME TAX: This is a compulsory payment levid on
by the government on individuals to pay a specific amount of money which should
later be used for development purposes (Agyei 1985).
TAX EVASION: This is a deliberate attempt not pay
taxes, it is therefore a illegal act, usually the income earner has the
capacity to pay tax but ie is not willing to pay very stem laws against tax
evasion should be made. Also the cannons of taxation should be followed when
making tax laws to stop tax evasion.
TAX AVOIDANCE: It refers to the use of legally
provided device to secure a maximum reduction in the amount of tax which is due
from a taxable, it also an immoral means of avoiding to pay tax completely.
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