1.1 Background To The Study
Tax constitutes a system of raising money from corporate institutions
and persons unbehalf of the government for developmental programmes.
Tax is a compulsory contribution imposed by government on eligible
tax payers in the country to aid in the financing of government
expenditures in the provision of essential services such as education,
health services, road constructions, security, social payments etc. tax
are imposed for reason of regulating the production of certain goods
and services, protection of infant or certain key industries, Curbing
inflation and meeting operational costs of governance. Taxes are also
imposed to mitigate the consumption of certain undesirable goods and
services, correct the country’s balance of payment and attract
investors. Regulate certain economic activities; bridge the inequality
gap between the rich and the poor. Consequently in order to achieve
these tax objectives, the government implement different types of tax
system such as “Pay As You Earn, (PAYE), Value added tax (VAT), Excise
duties etc .The research seek to proffer an assessment of Nigeria tax
system and it effect on educations system of public sector
1.2 Statement of the Problem
A fundamental functions of government is the responsibility to
provide essential service and infrastructure for the wellbeing of the
people such as the provision of education, health facility, security,
good roads, quality education etc. Therefore to achieve this objective
of government, it became necessary for government to impose taxes on
eligible persons and institutions in the country to raise additional
financing to meet these services. Consequently government has always
formulated various tax laws, policies and system to meet the challenges
of raising additional revenue. They include: Income Tax Management Act
(ITMA), Companies Income Tax Decree (CIID), Joint Tax Board (JIB) etc.
as a measure of ensuring adherence to tax payment and discouraging tax
evasion and avoidance. Therefore the problem confronting the research
is to proffer an Assessment of Nigeria tax system and it effect on
educations system of public sector
1.3 Objectives of the Study
To determine the Nigerian tax system
To determine the effect of Nigerian tax system on educations system of public sector
1.4 Research Questions
What is the nature of the Nigerian tax system
What is the effect of the Nigeria tax system on educations system of public sector
1.5 Significance of the Study
The study shall elucidate on the nature of Nigeria tax system and it effect on educations system of public sector
1.6 Research Hypothesis (If Necessary)
1.7 Scope of the Study
The study focuses on the Assessment of Nigeria tax system and it effect on educations system of public sector
1.8 Limitations of the Study
The study was confronted by some constraints including logistics and geographical factor
1.9 Definition of Terms
TAX: A compulsory sum of money imposed by the government on its citizen for the provision of public goods and services.
TAX BASE: This is the object which is taxed for instance personal income, company profit.
TAX RATE: The rate at which tax is charged.
TAX INCIDENCE: It offers to the effect of and where the burden is finally rested.
FBIRS: Federal Board of Inland Revenue Services. It is an
operational arm of Federal Board of Inland Revenue which is responsible
for the Federal Tax matters.
CITA: Company Income Tax Act (CITA) is a federal law operated by
the FIRS, which deals with the taxation of all limited liability
companies in Nigeria with the exception of those engaged in petroleum
JTB: Joint Tax Board (JTB) is established under Section 85(1)
of Decree 104 of 1993 to arbitrate on tax disputes between one state tax
authority and another.
VAT: Value Added Tax is a multistage tax levied and collected on transactions at all stages of sales and distribution.
CGTA: Capital Gain Tax Act is an act that stipulates that all
capital gains arising on disposal of asset of individual partnership and
limited companies should be taxed.
PPTA: Petroleum Profit Tax Act is an act that regulates the
petroleum profit tax and also specifies how profit from petroleum will
WITHHOLDING TAX: This is tax charged on investment income
namely: rents, interest, royalties and dividends, presently it is
charged as the tax offset.
PROGRESSIVE TAX: This is a tax incidence that increases as the size of income increases.
REGRESSIVE TAX: A tax is regressive when its tax rate decreases as the income increases.
EXCISE DUTIES: These are taxes on some goods manufactured within a country.
PERSONS: It includes all taxable persons whether it be individual or corporate bodies.