Description
ABSTRACT
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.
TABLE OF CONTENT
COVER PAGE
TITLE PAGE i
APPROVAL PAGE ii
DEDICATION iii
ACKNOWLEDGEMENT iv
ABSTRACT v
TABLE OF CONTENT vi
CHAPTER ONE: INTRODUCTION
BACKGROUND OF THE STUDY 1
STATEMENT OF THE PROBLEM 8
OBJECTIVE OF THE STUDY 9
RESEARCH QUESTION 10
STATEMENT OF HYPOTHESIS 12
SIGNIFICANCE OF THE STUDY 12
SCOPE OF THE STUDY 13
LIMITATION OF THE STUDY 14
DEFINITION OF TERMS 15
CHAPTER TWO: REVIEW OF RELATED LITERATURE
GENERAL OVERVIEW ABOUT THE STUDY 17
ORIGIN OF TAXATION 20
TAX ADMINISTRATION 24
PURPOSE OF TAXATION 27
QUALITIES OF A GOOD TAX SYSTEM 31
CLASSIFICATION OF TAXES 34
ENUGUSTATE BOARD OF INTERNAL REVENUE 46
THE REVENUE GENERATION IN ENUGU THROUGH TAX 48
INADEQUATE STAFF AND FACILITIES HINDER TAX GENERATED 49
REVENUE IN ENUGU STATE
INCIDENCES OF TAX EVASION AND AVOIDANCE IN ENUGU STATE
52
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
SOURCES OF DATA COLLECTION 64
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
DATA ANALYSIS 70
TEST OF HYPOTHESIS 83
CHAPTER FIVE: SUMMARY OF FINDINGS ,
CONCLUSION AND RECOMMENDATION
SUMMARY OF FINDINGS 92
CONCLUSION 94
RECOMMENDATION 96
BIBLIOGRAPHY 98
APPENDICES 100
CHAPTER ONE
INTRODUCTION
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.