The level of revenue generated in the 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.
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.
ADMINISTRATIVE STRUCTURE OF THE BOARD OF
INTERNAL REVENUE IN ENUGU STATE
The chain of administration in the state
board of internal revenue
SECRETARY TO THE BOARD
BOARD OF INTERNAL REVENUE
THE EXECUTIVE CHAIRMAN
SPECIAL ASSESSMENT UNIT LEGAL UNIT INFORMATION UNIT
ADMINISTRATION PRS DEPT
SUPPLY DEPT PLANNING RESEARCH &