TABLE OF CONTENTS
Table of Contents iv
1.1 Background of the Study 1
1.2 Statement of the Problem 2
1.3 Purpose of the Study 3
1.4 Significance of the Study 4
1.5 Hypothesis 5
1.6 Limitation of the Study 6
1.7 Definition of Terms 7
Chapter Two: Review
of Existing Literature
2.1 Definition of Tax Administration 9
2.2 Organs of Tax Administration 9
2.3 Technical Committees of FBIR 11
2.4 Joint Tax Board 12
2.5 Effectiveness of Tax Administration of the FIRS 13
3.0 Preamble 19
3.1 Population of the Study 19
3.2 Sample and Sampling Techniques 19
3.3 Method of Data Collection 20
3.4 Advantages of Questionnaire 20
3.5 Method of Data Analysis 21
Chapter Four: Data Presentation,
Interpretation and Analysis
4.0 Data Presentation 22
4.1 Data Interpretation 25
4.2 Data Analysis 26
4.3 Testing of Hypothesis 35
Chapter Five: Summary of Findings,
Recommendation and Conclusion
5.1 Summary of Findings 40
5.2 Recommendations 41
5.3 Conclusions 42
BACKGROUND OF THE STUDY
involves interpretation of tax laws and execution of the requirement. Referring
to Agbetunde L.A. in the textbook “Nigerian Personal Income Tax (2004). Tax
Administration had been existing in Nigeria before we were colonized.
It started from north when the colonialists did a sort of consolidation and
codification of existing taxation in 1902. the colonialist did these through
various policy regulations encoded in the Native Court Regulation (1902) and Native Revenue Proclamation.
amalgamation of the Northern and Southern provinces in 1914, the Native Revenue
Ordinance was enacted in 1917 in the north and 1918 in the south. There was a
problem in that these ordinances were applicable to specific sections of the
In 1951, Raisman
Fiscal Commission was set up to look into fiscal issues and the country to
solve the problems of inconsistency and confusion where not in the exiting
laws. Raisman Commission provided on recommendation that there should be
uniformity in taxation and thus from a basis of modern tax system and was
contained in the 1960 constitution.
This was enacted into
law via Income Tax Management (ITMA) of 1961. This Act provided for the
administration of both individual and company tax, from this came the gradual
reduction of the role of local authority in tax administration as the move was
towards the federal and state governments. The federal is to administer income
of limited companies while both federal and state are to administer Personal
Income Tax (PIT).
More reforms came
through the constitutional reforms of 1963, 1979 and 1989 as more and more
responsibility for tax administration is put on shoulder of the federal
governments. Further amendments were made on the Act in 1979 and 1990
STATEMENT OF PROBLEM
Here, we will look
into the effectiveness of tax administration on Nigeria. Tax administration is
encountered with so many problems such as untimely remittance of tax collected
by agent. Another problems is the failure of some organisation to register and
pay tax on themselves as the law requires, also some professionals like
lawyers, accountants and estate agent to mention a few.
THE PURPOSE OF THE STUDY
According to Prince
Adejuwon Jonathan, in the textbook “Analysis of Taxation”. This project is
aimed at providing information on the impact of effective tax administration on
Nigeria Economy. Here are some facts which will assists to understand the
implementation of tax in Nigeria:
Tax is paid by all
chargeable persons and cooperate organisation.
Tax charged on income
of person other than company is referred to as “Personal Income Tax (PIT). The
income charged under this tax are income of individuals (either as an
individual or in partnership) from sources like employment, trading, business
The tax is at ten
incorporated in Nigeria
under CAMA are charged on the taxable profit of company on the basis of 30%
Petroleum profit tax
is a tax charged on taxable profit of petroleum companies involved in petroleum
operation in Nigeria.
Records and accounts
have to be kept.
Revenue Service (FIRS), Tax directorate provided a free information and advisory
service to help you with tax.
SIGNIFICANCE OF THE STUDY
The significance of
this research is to enlighten the public on what tax administration is all
about and to devised series of strategies to combat these problems. The
problems detected in tax operation and administration which research intend
include untimely remittance of tax by agents because most collecting agents
tend to keep the money collected, problems encountered in obtaining statement
of account and untimely reconciliation of such account.
Tax operation and
administration in Nigeria
really warrant investigation because of the failure of some organisation to
register and collect tax as required by law; these include big parastatals and
statutory corporation of government such as Nigeria Post Plc and Nigeria
Railway Corporation. This research work will even go a long way bringing about
proper implementation of tax operation and policy when all parastatals are
statement of preposition about the existence, size, form, differences in
relationships between or distinctions of some variables. For the purposes of
this study to be properly guide, some hypothesis are formulated; they are:
Inform of null
hypothesis (H0) and Alternative hypothesis (H1).
H0: Tax administration does not boost the
economy of Nigeria.
had boosted the economy of Nigeria.
H0: There are no problems concerning the
administration of tax in Nigeria.
H1: There are
lots of problems concerning the administration of tax in Nigeria.
H0: There is untimely remittance of tax
collected by agents in Nigeria.
H1: There is
timely remittance of tax collected by agents in Nigeria.
H0: Tax operation and administration in Nigeria does
not warrant investigation.
operation and administration in Nigeria
LIMITATION OF THE STUDY
The limitation of
this research study might include the following:
Time Constrain: The research study is
being conducted alongside the earning process in the classroom. This entails a
distribution of limited available time between both activities. Hence, such
time constraints offer a limitation on the research study.
Financial Constraints: Being that the
financial requirement of a research study is enormous, my lean finance may not
be enough to go round the study as designed.
Other Constraints: These include
constraints imposed by analyst, professionals and other personnel who may be approached
during the course of the study as to their opinion on the subject matter.
Despite the above limitation, it is my intentions
that the study will be an eye opener into the necessity of effective tax
administration in the country.
DEFINITION OF TERMS
Various definition of
terms will be covered under this heading. Thee include the definition of:
According to Adesola
S.M. (1998) Tax Law and Administration.
He defined the above
listed terms as:
i. Tax: This is a compulsory levy imposed by the government
authority through its agent on its subject or his property to achieve some
goals. It is paid without expecting something in return.
These are tax
professionals that give expert advices to the tax authority and taxpayers.
Commissions or fees are charged for services rendered.
Tax Clearance Certificate
This is a document
issued by the tax authority on the request of the tax payer when it is satisfied
that the tax payer has fully paid his tax for three years preceeding the
current year of assessment or that no tax is due on the income of that person.
This is a criminal
attempt to escape tax liability (wholly or partly) by breaking the law. It
results from inefficiency in tax administration.
This is a notice
prepared by tax authority and served on or sent by a registered post to each
taxable person on persons whose income are charged to tax. It contains the
amount of income assessed, amount of tax charged and where to pay the tax.
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