Table of contents
Purpose of the study’
Significance of the study
Objective of the study
Scope and limitation of study
Definition of terms
Definition of tax
Classification of tax
Tax administration in
Merits and demerits
Problems of income tax managements
Summary of finding
Since the down of human civilization, every
organized which has society used a forms of taxation or another. Which is
determined by the limitation imposed by the physical and social environment in
which the taxation system is implemented.
Facts tell us that no form of taxation
involved since human history is without it’s short comings. A taxation
Administration may seen good and
efficient within a particular society for a period of time but may not be
suitable as the structure of the society changes with time. Hence every tax
administration needs continual re-examination or revision in order to
accommodate the changes in the society. This is with a view to removing those
factors which are likely to cause problems in the taxation administration.
My strongest conviction is that the Enugu
environment must be put under investigation and study so that a sound taxation
administration could be evolved which would take into recognizance. The limitations imposed by the Enugu environment.
This would ensure that a taxation administration is developed which would at
least reduce the problems associated with it.
1.1 GENERAL INTRODUCTION
It has been known to every body in the state, the period of economics boom of gigantic proportion which was properly
nick named as the oil-boom and therefore, a call for the need of increase drive
for revenue generation, which has become inevitable now must state has
generally intensity their various states in order to supplement whatever they are able to grab from the federal government and their own
allocation known as share of national cake. This argumentation of federal
revenue allocation by the imposition of
taxes on the individuals companies and commodities, if efficiency managed are
carried out if will help the state government to remove the shareholder of
economic recessive bondage which is the main problem disturbing the
increased standard of living of individuals anywhere in the world.
Therefore it is the main objective of the
study to take critical examination and evaluation of the taxation as a share of
revenue for government of Enugu State, and after the analysis the research is
declared to find the prevailing problems and therefore a well planned
recommendation for the reformation of taxation system is formulated. This term
paper is focused it self to the need for increased drive for revenue in the
state and problems militating against such optional revenue generation.
1.2 PURPOSE OF THE STUDY
To check adverse balance of payment, this could
be gained by raising tax at all levels higher than is necessary to cover
government expenditure, thereby achieving surplus. When operated as PAYE it
yield goods amount of revenue to the government because of low cost. To prevent
home industry by imposing discriminatory
tariffs, provide incentives for industry and investment e.g tax grant or
allowance for research work by the government and investments.
To adjust trade imbalance e.g imposition of
prohibitive import duties.
1.3 SIGNIFICANCE OF THE STUDY
It is an all pervading subject which effects
the lives of nearly every body and no major accounting problem can be
satisfactorily problem can be satisfactorily solved without a consideration of
its tax aspects.
This is the major sources of revenue for all
government in Nigeria which the officer
suppose to come back to the payers in the form of social amenities.
1.4 OBJECTIVES OF THE STUDY
Objective of study are as vic;
1. To adjust trade imbalance e,g
imposition of prohibitive impost duties.
2. To provide free social
services like health and education
3. To encourage savings and
regular expenditure e.g tax on luxuries
4. To protect home industry by
imposing discriminatory tariffs.
5. To provide incentives for
industry and investment e.g tax grant or
allowance for research work by the government
allowance for prospective investors.
6. To achieve desirable social
end e.g discourage excessive smoking or
7. To reduce inequality of
incomes, progressive income tax had been
imposed by many governments.
8. To check adverse balance of payment. This could be achieved by
tax at all level higher, than is necessary to
cover government expenditure thereby achieving budget surpl.
9. The spirit of civic
responsibility amongst the tax payers is heightened by
the impositions and payment of direct taxes.
Mostly the PAYE. The tax
payer exercises the pride of contributing to
the welfare of the
When operated as PAYE, it yields good amount of revenue to the
government because of the very low cost.
1.5 SCOPE AND LIMITATION OF STUDY
Limitation is the ability for instance to pay
income tax depends not only on the amount of his income but also on his other
personal circumstances. The present system of income tax usually regarded as
unified tax is progressive in that the rate at which income tax in charged
increased as an individuals income increases as a first step it is necessary to
compute the gross amount of his or her income from all sources for the
appropriate year of assessment measured in accordance with the provision of the
tax acts and to deduct certain amount including personal allowances.