- No of Pages: 55
- No of Chapters: 05
Monies collectible by government is generally recognized as being very important because it constitutes a major source of revenue to government. In Nigeria, one source of revenue which many sees as vertical to the state government is the personal income tax deduction made from workers salaries. It is seen as occupying a significant position in revenue of the state government.
This study was conducted to survey the system of Internal revenue collection and enforcement procedures under the Personal Income Tax Act, 1993 and to identify the problems and difficulties encounter by the Revenue Service Department. It also propose to recommend new method of tax collection in order to enhance a secured and improved efficiency in tax administration.
In order to accomplish the objectives of the study as highlighted above, the researcher made use of a survey design through which primary and secondary datas were used.
The study discovered that Personal Income Tax is an important source of income to the state government. This study also discovered that there are certain factors such as non-documentation of economic activities and inability of tax authority to ascertain total income of tax revenue to be generated.
Finally, it was recommended among others that tax revenue should be geared towards social and economic development of the local government. Effort should be intensified on public enlightment and education to the tax payers in the need to pay tax.
Table of Content
TITLE PAGE i
1.0 INTRODUCTION 1
1.1 BACKGROUND OF THE STUDY 1-2
1.2 PURPOSE OF THE STUDY 3
1.3 STATEMENT OF THE PROBLEM 4
1.4 PURPOSE OF THE STUDY 5
1.5 SCOPE OF THE STUDY 5
1.6 LIMITATION OF THE STUDY 5
1.7 DEFINITION OF TERMS 6-7
2.0 LITERATURE REVIEW 8
2.1 GENERAL OVERVIEW 8-12
2.2 CLASSIFICATION AND IDENTIFICATION
OF TAXES 13
2.3 CANON OF TAXATION 14
2.4 PERSONAL INCOME TAX 15
2.5 CHARGEABLE INCOME OR TAXABLE INCOME 15
2.6 TAX RELIEF 16
2.7 FORMAT OF PERSONAL INCOME
TAX ASSESSMENT 17-18
RESEARCH METHOD 19
3.1 INTRODUCTION 19
3.2 POPULATION OF THE STUDY 19
3.3 DATA COLLECTION INSTRUMENT 19
3.4 METHOD OF DATA ANALYSIS 20
3.5 TEST OF HYPOTHESIS AND INFERENCE 20
4.1 PRESENTATION AND ANALYSIS OF DATA 21-32
SUMMARY, CONCLUSION AND RECOMMENDATIONS 33
5.1 SUMMARY 33
5.2 CONCLUSION 33
5.3 RECOMMENDATIONS 34
1.1 BACKGROUND OF THE STUDY
Revenue as regards to companies and other business establishment is defined as the income that a company receives from its normal business activities, usually from the sale of goods and services to customers, so also is to Government. Government must generate income so as to finance her cost of administration and also in providing constitutional demanded responsibilities. There have been a considerable increase in the administration cost and development expenditure such as the capital invested on the constructions of roads, provision of equipment and other social and economic amenities the word “TAXATION” comes in as a result of the need for Government to generate revenue and to finance expenditures in the cause of its administration.
Taxation is a compulsory levy that the government of a country or its appropriate agency imposes on taxation persons, individuals, businesses and other bodies to allow the government provide money needed for running of government and to achieve other macro economic objectives and fiscal policies of the government.
The traditional purpose of imposing tax and taxation is to raise money to run the affairs of the government. However, recently, I have seen government and their agencies imposing taxes for some other purposes like; stimulating investment, reducing inflation encourage the purchase of local goods, discouraging the consumption of certain goods etc.
The simple fact that taxation is a company levy is not meant to be paid by all. These classes of people are called “taxation persons”. Personal income taxes for instance are levied on persons who earn income-up to certain amount and corporate taxes are imposed on those corporate entities that make profit from trade or business.