ABSTRACT
The level of revenue
generated in the Effect Of Tax Administration On Revenue Generation In Enugu
state has been in a declining form due to poor administration and collections
of taxes and lack of proper return of accounts. These are the negative effects
that affect government revenue generation which are targeted to meet her basic
functions like provision of basic amenities for her citizenry in the state. The
aim of this research study is to evaluate the effect of tax administration on
revenue generation to the Enugu state government. The research design adopted
in this study was survey research method. Primary and secondary sources of data
were used in collecting information which was analyzed using simple percentages
and hypothesis tested using chi –square statistical method at 0.05 level of
significant for validity and to make decisions. Findings show that there was
rampant incidence of tax evasion and avoidance in the state, and the tax
administration in Enugu state is inadequate, not effective and not efficiently
managed thus: inadequate staff and facilities also hinder tax administration
and collection. The researcher, in the final analysis drew a lasting
conclusion, some of which are:- the apathy of Enugu state people towards
payment of tax could be reduced by involving them in the decision making of tax
administration, collection and utilization of the tax revenue. The environment
should be made better by both the government and its agencies. The staff of the
SBIR Enugu should be well remunerated and ensure adequate administration of tax
laws in accordance with the laid down rules and regulations.
TABLE
OF CONTENT
COVER
PAGE————————————————————————
TITLE
PAGE————————————————————————-i
APPROVAL
PAGE——————————————————————ii
DEDICATION———————————————————————–iii
ACKNOWLEDGEMENT———————————————————–iv
ABSTRACT————————————————————————–v
TABLE OF
CONTENT————————————————————-vi
CHAPTER ONE:
INTRODUCTION
1.1 BACKGROUND OF THE STUDY———————————————1
1.2 STATEMENT OF THE PROBLEM —————————————–8
1.3 OBJECTIVE OF THE STUDY ————————————————9
1.4 RESEARCH QUESTION —————————————————–10
1.5 STATEMENT OF HYPOTHESIS——————————————–12
1.6 SIGNIFICANCE OF THE STUDY——————————————-12
1.7 SCOPE OF THE STUDY—————————————————–13
1.8 LIMITATION OF THE STUDY———————————————14
1.9 DEFINITION OF TERMS—————————————————15
CHAPTER TWO: REVIEW
OF RELATED LITERATURE
2.1
GENERAL OVERVIEW
ABOUT THE STUDY—————————-
17
2.2
ORIGIN OF
TAXATION—————————————————–
20
2.3
TAX
ADMINISTRATION————————————————————-
24
2.4
PURPOSE OF TAXATION————————————————————
27
2.5
QUALITIES OF A GOOD
TAX SYSTEM——————————————–
31
2.6
CLASSIFICATION OF
TAXES——————————————————-
34
2.7
ENUGUSTATE BOARD OF
INTERNAL REVENUE——————————
46
2.8
THE REVENUE
GENERATION IN ENUGU THROUGH TAX ——————-
48
2.9 INADEQUATE STAFF
AND FACILITIES HINDER TAX GENERATED——–
49
REVENUE IN ENUGU
STATE
2.10 INCIDENCES OF
TAX EVASION AND AVOIDANCE IN ENUGU STATE—-
52
2.11 EFFORTS MADE BY
ENUGU STATE BOARD OF INTERNAL REVENUE TO
IMPROVE REVENUE
GENERATION——————————————–
56
REFERENCE —————————
62
CHAPTER THREE:
RESEARCH METHODOLOGY
3.1 INTRODUCTION
—————————————— 63
3.2 RESEARCH DESIGN
——————————- 63
3.3 AREA OF THE
STUDY——————————- 63
3.4 POPULATION OF THE
STUDY ————————————63
3.5 SOURCES OF DATA
COLLECTION——————————————– 64
3.6 DETERMINATION OF
SAMPLE SIZE ———————————————65
3.7 METHOD OF DATA
ANALYSIS ——————————————— 66
3.8 VALIDITY
TEST ——————————————— 68
3.9 RELIABILITY
TEST ——————————————— 68
REFERENCE
CHAPTER FOUR:
PRESENTATION, INTERPRETATION AND ANALYSIS OF DATE
4.1 DATA
PRESENTATION————————————————————-70
4.2 DATA ANALYSIS
——————————————————————-70
4.3 TEST OF
HYPOTHESIS ————————————————————-83
CHAPTER FIVE: SUMMARY
OF FINDINGS , CONCLUSION AND
RECOMMENDATION
5.1 SUMMARY OF
FINDINGS——————————————————–92
5.2 CONCLUSION——–
————————————————————–94
5.3 RECOMMENDATION
————————————————————-96
BIBLIOGRAPHY————————————————————————-98
APPENDICES—————————————————————————–100
CHAPTER
ONE
INTRODUCTION
1.1
BACKGROUND OF STUDY
In all generation,
the problems of personal income tax generation and
administration
continues to surface in one form or another in virtually every society,
especially in this part of the world. It is important to point out that the
federal government has taken adequate steps in effective tax administration.
This failure on the
part of the federal government is responsible for poor financial positions of
both the state and local government. Besides, this inadequate planning and
absolute laws governing taxation, evaluation and collection is characterized by
chaos.
This chaotic nature
of the system can be appreciated by political influence or interferences in the
process of taxation during the civilian administration in the country which
gave rise to untrained and inexperienced personal being entrusted with the work
of collection and administration of personal income tax.
The important of
these issues to tax administration in the developing countries like. Nigeria,
can be seen from the following extract from tax
administration in
under developed countries. The tax administration finds himself working with a
staff which is inefficient in experienced, and poorly paid.
BOARD
OF INTERNAL REVENUE ENUGU
The board of internal
revenue Enugu was established to administer income tax in Enugu state just as
there are likely to states of the federation.
Income tax was first
introduced in Nigeria in 1904 by late Lord Lugard. The introduction of Native
Revenue ordinance of 1927 was most difficult in the Eastern areas of the
country, due mainly to absence of recognized central Authority Resistance to
this form of direct taxation in such that it result to riots notably in
calabar, Owerri and the famous, Aba women Riot of 1929 which was so severe that
it attracted a probe. Beside, the Native Revenue ordinance were also Native
direct taxation ordinance for the colony and the Native income tax ordinance.
These ordinance were
late modified and incorporated into the Direct taxation ordinance No 29 of
1940, cap 54 and the income tax ordinance No 29 of 1943 respectively.
The direct taxation
ordinance 1940 empowered native authorities to tax Africans in their areas of
jurisdiction while the income tax ordinance 1943
was for the taxation
of non-Africans in companies. The two ordinances were the foundation of our
modern taxation which necessitated establishment of board of internal revenue
in each of the states of the federation which Enugu Board of internal Revenue is
one of them.