AN EVALUATION OF THE PROBLEM AND PROSPECT OF TAX COLLECTION IN INTERNAL REVENUE SERVICE

AN EVALUATION OF THE PROBLEM AND PROSPECT OF TAX COLLECTION IN INTERNAL REVENUE SERVICE IN BAUCHI STATE.

ABSTRACT

The research  profers  an appraisal of the problem and prospect of tax collection in internal revenue service  of bauchi state. It analyses the concept of tax and its significance and elucidate the problem encountered in the process of tax collection.The research profers the prospect in tax collection and administration,while investigating tax administration in bauchi state as a case analysis.

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Tax is invariably an enforced contribution of money ,exacted pursuant to legislative authority if there is no valid statute by which it is imposed, a charge is not a tax.The classical purpose of taxation is the raising of funds to meet government expenditure.redistribution of wealth and the management of the economy.The tax system can also be used to direct the course of the economy.It is often to encourage economic  activities. Tax affects the amount available for spending by the private sector of the economy.correspondingly, an increase  in tax rate and gathering efficiency will affect the amount available for government spending.Not only that such increase or decrease no matter how minimal may have inflationary or deflationary effect on the economy.secondly and particularly in the case of taxes on income, there is tendency of their imposition to encourage or discourage particular activities. The significance of tax to the government and the state can not be over emphasized.However achieving  a high level of revenue through tax is not always an easy fit to attain.Problems encountered includes inadequate staff, bribery and corruption, mismanagement of tax collected, poor accounting record, etc.But  according to Adam Smith (1968), there are prospect the lies with the collection of tax.The research intends to investigate  the problem and prospect of tax collection in internal revenue service in bauchi state.

             
1.2   STATEMENT OF THE PROBLEM

The problem confronting this research is to evaluate  the problem and prospect of tax collection in internal revenue service of bauchi state.

  
1.3   RESEARCH   QUESTION

1   What is the nature of taxation 
2   What constitute the problems encountered in the collection of tax 
3   What are the prospect of tax collection 
4   What are the problems and prospect of  tax  collection in bauchi state

1.4  OBJECTIVE OF THE RESEARCH

1  To determine the nature of taxation 
2  To appraise the  problems and prospect of tax collection 
3  To determine the problems and prospect of tax collection in bauchi  

1.5   SIGNIFICANCE OF THE RESEARCH

The research shall elucidate the problems and prospect of tax collection and profer possible recommendations for effective tax administration.  

    
1.6    STATEMENT OF THE HYPOTHESIS

1   Ho  Tax revenue in bauchi is low     
     Hi  Tax revenue in bauchi   is  high   
2   Ho  Problem of tax collection in bauchi  is low      
     Hi   Problem  of tax collection in   bauchi   is   high   
3   Ho  The prospect of tax collection in bauchi is low        
     Hi   The prospect of tax collection in bauchi is high  

    
1.7  SCOPE OF THE  STUDY

The study intends to appraise the problems and prospect of tax collection in bauchi state.

1.8   DEFINITION  OF TERMS

TAX DEFINED Tax is invariably an enforced contribution of money ,exacted pursuant to legislative authority if there is no valid statute by which it is imposed, a charge is not a tax.The classical purpose of taxation is the raising of funds to meet government expenditure.redistribution of wealth and the management of the economy.The tax system can also be used to direct the course of the economy.   
PERSONAL INCOME TAX DEFINED This is tax levied on income of individuals which  is earned either from employment ,trade, business, vacation or profession.