ABSTRACT
This research
“work” financial Abuse in the public sector. An overview of federal inland
revenue service entire relevant information towards the achievement of
organizational goals. Therefore is the need for effective internal control. A system
in order to give an organizational a sense of direction and allowing for it
growth. The study sought to find out the financial management and waste in the
public sector identify the key areas that cause all these abuse in the public
sector and also to examine the method to be used in controlling the financial
abuse.
Title page:………………………………………………………………………………….i
Declaration:……………………………………………………………………………….ii
Approval Page:…………………………………………………………………………..iii
Dedication:………………………………………………………………………………….iv
Acknowledgement:………………………………………………………………………v
Abstract:…………………………………………………………………………………….vii
Table of content……………………………………………………………………… viii
TABLE OF
CONTENT
CHAPTER
ONE
1.1
Background of
the study - - - - - - 1
1.2
Statement of
the problem - - - - - 6
1.3
Objective of
the study - - - - - - 7
1.4
Statement of
the hypothesis - - - - - 8
1.5
Significance of
the study - - - - -- - 9
1.6
Scope of the
study - - - - - - - 9
1.7
Historical
background of FIRS - - - - - 10
1.8
Definition of terms - - - - - - 12
CHAPTER
TWO
2.0
Literature
review - - - - - - 15
2.1 Definition
of tax - - - - - - 15
2.2 Source
of revenue to the federal government - 19
2.3 External
source of revenue - - - - 22
2.4 Internal
control of funds in federal government 26
CHAPTER
THREE
METHODOLOGY
3.1
Introduction - - - - - - - 29
3.2
Population and
sample size - - - - 31
3.3
Sampling
technique - - - - - - 32
3.4
Source and
method of data collection - - 32
3.5
Method of data
analysis - - - - - 33
3.6
Justification
for the choice - - - - 34
CHAPTER
FOUR
3.0
Data
presentation, analysis and interpretation
4.1
Introduction - - - - - - - 35
4.2
Data
presentation and analysis - - - 38
4.3
Testing of
hypothesis and interpretation - - 38
4.4
Summary of
findings - - - - - 41
CHAPTER
FIVE
Summary, conclusion and recommendation
5.1
Summary - - - - - - - - 44
5.2
Conclusion - - - - - - - 46
5.3
Limitation of
the study - - - - - 50
5.4
Recommendations
- - - - - - 51
References - - - - - - - 54
Appendix/appendices.
CHAPTER
ONE
BACKGROUND
OF THE STUDY
The main objective of writing this project “on the
evaluation of financial abuse in the federal inland revenue service” is to
bring to the notice of the readers the source from which government derived its
revenue and how its expenditure controlled and also to identify the evaluation
of financial abuse in the federal inland
revenue service and some control measure which the government can adopt in
order to present the financial abuse in federal inland revenue service.
The appropriate govern46ment organ institution on
largely responsible for the collection of tax is the federal inland revenue
service while the office responsible for the accountability of the money
collected on behalf of the government is the revenue mobilization and fiscal
commission operated as a department in the federal ministry of finance.
As part of the re-organization the federal
government of Nigeria
found it necessary to create revenue division from federal ministry of finance.
This made it an autonomous body known as Federal Inland Revenue service, the
board become more effective in collection of revenue for the federal
government.
Financial abuse in the public sector is an attempt
by which the government allows the financial mismanagement, embezzlement and
wastes in it’s sector and to identify the various key area that course all
abuse in the public sector and also examine the method to used. All abuses
therefore this research would go deeply into the plan in the organization in
the financial aspects, check the accuracy and reliability of the accounting
clate promote operational efficiency .and encourage adherence to prescribed
official ‘polices and guideline.
In consideration of this topic, therefore is that
there must be some element in which every organization must adopts the ones
that are necessary for the controlling some financial transactions in that
organization custody and security of Assets. The background of the study is to
identify the various source of revenue for federal in land revenue service are
as ‘follows, VAT, Personnel Income Tax, Custom Duties Company Income Tax,
Education Taxe Capital Gain Tax, Import Duties and Export Duties Petroleum
Profit Tax, etc are allocated to the various department project and to examine
the financial record of federal inland revenue service to know whether there is
adequate system of internal control in the organization. The evaluation of
financial abuse in the federal Inland Revenue service encountered some likely
peculiar issue has regarding to financial record accuracy of the tax
administration in Nigeria
have received a lot of attention and commentance, some people have advocated
for an over haul of over system. That we should do things that are peculiars to
Nigeria
environment and these that are not should be left out. The board is faced with
a lot of problems which include:
1. SHORTAGE
OF PERSONNEL: The personnel
department play an important role in the system of revenue collection in the
state, this shortage of staffs is capable of impairing the objective time of
maximizing personnel income tax revenue by 1996. The senior officials in the
federal inland revenue services of intend revenue was 286 but present were 354,
the reduction percent was at minimum of 50%.
2. PROBLEM OF
ASSESSMENT TAX: Assessment
problem centres among the location of the personnel income tax and the
determination of his assessable income, effectiveness within the content of
personnel income tax administration may be measured in terms of the ratio of
actual to potential coverage.
3. CURRUPTION
AMONG TAX PAYER: The tax payer
default in paying the exactly amount by bribe of the tax collector in order to
reduce the actual amount collected as a taxes.
4. CORRUPTION
AMONG TAX OFFICIALS: In the
processing of collection of the revenue tax, officials must especially the tax
collector print their receipt booklet and issued to the tax payer without their
knowledge and mea ‘while that the duplicate carries is not what the original
was reading, they may use carbon paper to the duplicate, at time the revenue
collector would received the money from the tax payer with out even issue of
receipt to them.