AN APPRAISAL OF TAX COLLECTION SYSTEM IN NIGERIA A CASE STUDY OF FEDERAL BOARD OF INLAND REVENUE SERVICE IN IMO STATE

ABSTRACT

An appraisal of tax collection system in Nigeria. The aim and objective of the topic is to critically analyze the assessment and collection procedure of tax in Nigeria. To identify the problems militating against assessment and collection procedure, to know the possible effects of improving assessment and collection recommendation for an effective and efficiency means of assessment and collection of taxes. Finally, to make useful suggestion and advices the government based on the findings.

The significant of this study is that though tax is a nationwide phenomenon, the scope of this study is intended to cover only Imo state; the tax laws in Imo state and the various types of taxes in operation.

Taxation as one of major sources of revenue to the unsuccessful implementation of economic policies on collection procedures for the government. Fraud as one of the problem because most of tax payers in Nigeria falsify their records so as not to be declare high profit and pay high tax . Also most of the taxpayers’ money cannot be accounted for. At times when taxes paid, the tax officials don’t give the government all the monies they reserve some for themselves.

The techniques used in the formulation of the hypothesis are the statistical method which is the chi-0square method was chosen to help in interpretation of the data collection during investigation. The null hypothesis (Ho) is used to determine its acceptance and or otherwise the acceptance of the alternative hypothesis (H1).

The findings in all the project is that the assessment and collection in Nigeria is not effective.

Secondary is that the response of taxpayers in Nigeria connive with tax officials to evade tax.

The researcher’s recommendations in order to boost the present tax collection system in Nigeria is to increase the revenue generated through tax improve tax payers confidence in the government and willingness to pay tax.

TABLE OF CONTENTS

Title page-      –      –      –      –      –      –      –      –      -i

Certification-   –      –      –      –      –      –      –      –      -ii

Dedication-     –      –      –      –      –      –      –      –      -iii

Acknowledgment-   –      –      –      –      –      –      –      -iv

Abstract- –      –      –      –      –      –      –      –      –      -v

Table of contents-  –      –      –      –      –      –      –      -vi

Chapter one

1. Introduction – –      –      –      –      –      –      –      -1
   1. Back ground of the study-   –      –      –      –      -2
   1. Statement of the problem-  –      –      –      –      -4
   1. Objectives of the study-      –      –      –      –      –      -5
   1. Research questions-     –      –      –      –      –      -6
   1. Statement of hypothesis-    –      –      –      –      -7
   1. Significant of the study-      –      –      –      –      –      -8
   1. Scope of the study-     –      –      –      –      –      -9
   1. Limitation of the study-       –      –      –      –      –      -10
   1. Definition of terms-     –      –      –      –      –      -10

Chapter two

2.0 Literature review-    –      –      –      –      –      –      -13

• Introduction- –      –      –      –      –      –      –      -13
  • Review of tax laws in Nigeria-      –      –      –      –      -13
  • Canons of taxation –      –      –      —    –      –      -14
  • Provision of income tax management Act (ITMA)-      -16
  • Nigeria tax legislature    –      –      –      –      –      – 17
  • The various types of taxes and their legal back    -18
  • Important of taxation    –      –      –      –      –      -19
  • Federal Board of Inland revenue-  –      –      –      -20
  • state board of Inland revenue-     –      –      –      -23
  • Local government revenue committee- –      –      -25
  • Nigeria tax structure-    –      –      –      –      –      – 25
  • Definition/explanation of tax terminology29
  • Assessment of persons and partners-   –      –      -40
  • The concept of value added tax-   –      –      –      -41
  • Vatable persons in Nigeria-   –      –      –      –      -48

Chapter three

3.0 Research Design and Methodology –      –      –      –      -50

• Introduction- –      –      –      –      –      –      –      -50
  • Research design sources/methods of data collection-50
  • Sources of data     –      –      –      –      –      –      -51
  • Population and sample size-  –      –      –      –      -52
  • Sample technique- –      –      –      –      –      –      -54
  • Validity and reliability of measuring instrument-  -54
  • Method of data analysis-      –      –      –      –      –      – 56

Chapter four

4.0 Presentation and analysis of data-   –      –      –      -65

• Introduction-  –      –      –      –      –      –      –      -65
  • Presentation of data-     –      –      –      –      –      -65
  • Analysis of data-    –      –      –      –      –      –      -66
  • Test of hypothesis- –      –      –      –      –      –      -74
  • Interpretation of result- –      –      –      –      –      -79

Chapter five

5.0 Summary conclusion and recommendations – –      -81

5.1 Introduction-    –      –      –      –      –      –      –      -81

5.2 summary of findings-      –      –      –      –      –      –      – 81

5.3 Conclusions-     –      –      –      –      –      –      –      -82

5.4 Recommendations – –      –      –      –      –      –      -83

5.5 recommendation for further studies –     –      –      -90

References      –      –      –      –      –      –      –      –      -91

Appendix-       –      –      –      –      –      –      –      –      –      -93

CHAPTER ONE

1. INTRODUCTION

An important sacrifice one makes towards the upliftment of one’s country is the payment of tax. Revenue accrued from taxes are used by government to discharge its enormous responsibilities.

Therefore, we can say that taxation is the process or machinery by which communities or groups of persons are made to contribute part of their income in some agreed quantum and methods for the purpose of administration and development of the society.

It is a levy imposes by the government against the income, profit or wealth of individual, partnership and corporate organization. This is why it is often referred to as a civil obligation.

In Nigeria, there are other forms of taxation. Dating back to the days of our great grand fathers where by communities taxed themselves through communal labour to execute community projects or to help the community. This is still practiced in various parts of the country today. In that concept the basis and objectives of taxation are so laudable and acceptable. It is surprising that people still want to evade it or avoid it completely perhaps; it is the entire system that gives room for evasion, avoidance and other problem of taxation or may be the societal ills and failure that makes people want to evade it. Let us therefore now look at the structure and system of taxation in Imo state and appraise the effectiveness or otherwise and its problem.