Effect of Tax Administration on Infrastructural Development in Ogun State
CHAPTER ONE
Objective of the study
The main objective of the study is to examine the effect of tax administration on infrastructural development in ogun state. Specifically, the study aims
- To determine the impacts of poor Tax administration on the development of Osun state
- To evalaute the contribution of poor infrastructures to the loss of lives in the state
- To determine the extent to which the training of tax personnel the only effective and lasting solution to the problem of Tax administration
- To examine the effectiveness of various policy tools used in Tax administration
CHAPTER TWO
LITERATURE REVIEW
OVERVIEW OF THE NIGERIAN TAX SYSTEM
In Nigeria taxation has been existing even before the amalgamation in 1914 of the North and South provinces to form the territory now called Nigeria. The types of taxes paid in those days are in form of homage paid to Oba’s, household contribution for maintenance of peace and maintenance of soldiers, penalty paid for non-performance of civil right and contribution to educational development.
The earliest trace of taxation was believed to have started from Northern Nigeria and this was before the advent of British administration. The emirs had organized forms of administration and their Islamic Relation made it possible for people to contribute toward charity which laid a sound foundation for direct taxation in Northern Nigeria. Prior in 1900,some of the levies were “Zakkat (a tax on moral property meant for charity),Jangali (tax on livestock),Gado (death tax),Jizjah (tax on slaves) etc these were recognized in the Northern Nigeria, Onwubiko(1998).
There were also some form of taxes in Southern Nigeria (Yoruba parts) by way of tributes (isalcole), totls, levies, feas and presents given to Obas (Kings), Chief in Benin, Oyo and some other Yoruba Kingdom of Western Nigeria. However in the east this type of tax paying tradition was virtually non-existing but except fine called “Iri-iwu”due, mainly to lack of organised central authority
which the eastern Nigerians are known for their Egalitarian society. These forms of taxation comes to a halt with the advent of colonial master’s. The Oba’s and emirs now used in imposing taxation on their subjects and anymore found guilty was punished Onwubiko (1998).
With the advent of the British, the administration and collection of tax were made with the enactment of several ordinances. Direct income assessment was introduced by the Lord Lugard, the British high commissioner through the community tax ordinances 1904 in the then Northern Nigeria. He also passed another law “the nature revenue proclamation law at 1906”. This law aimed at verifying all forms of taxation in Northern Nigeria. He also made changes which aculiminated in the nature revenue ordinate of 1917.
In 1918 an amending ordinances that extended the provision of 1917 ordinance applied to Abeaculta in the Western Nigeria and to Benin-city in mid- Western Nigeria, but these were initially opposed most especially in Owarri, Calabar and Aba areas. It was after the 1917 ordinance was amended that Lord Lugard extended the law to eastern province in 1928, the native direct taxation (colony) ordinance number 41 of 1937 was promulgated. Modern era of taxation began when two major legislations were passed in 1940. The direct ordinances number 4 applicable of all citizen except those in Lagos township and the income tax ordinance number 3 applicable to expatriate and to Nigerians living in Lagos.
When Nigeria became a federation in 1952, each regional government was responsible for the taxation of individual resident in the areas of authority base on separate laws thus making trading activities within regions of the country difficult since a trader may be called upon to pay tax in more than one region in a year.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.
This study was carried out to examine effect of tax administration on infrastructural development in ogun state. The study population used in this research comprised of workers in the internal revenue service in Osun State.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of forty-seven (47) questionnaires were administered to respondents of which 44 were returned.
The tables 1 above shows that 24 respondents are male and 20 respondents are female which represents 54.5% and 45.5% respectively. The result shows that majority of the Osun state Internal Revenue Service workers are male.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
Summary of findings
The statistical analysis used in this study revealed that the effect of internal tax administration has led to infrastructural development.
It was observed that the workers in Osun state contribute to tax administration. The researcher also discovered that the infrastructural development in Osun state is as a result of adequate generated revenue and that tax administration supports infrastructural development.
Furthermore, it was observed that Osun state is ahead of other states in the provision of basic infrastructures. It has also been observed that revenue agencies in Osun state are efficient.
Finally, the researcher’s findings was that the major method to be adopted by the Osun state government in order to improve tax administration base should be the enlightenment of the citizens on the need and important of regular payment of taxes.
Conclusion
Given the very low starting level of Internally Generated Revenue in 1999, the continuous improvement in revenue collection since the return to democratic governance is not a sufficient proof of the efficiency of the revenue administration arrangements recently put in place. There is a revenue administration cost issue that needs attention to ensure that the burden of revenue administration on the State remains reasonable.
This research work posits that the generation of revenue contributes significantly to the development of infrastructures. This study has endeavored to exhaust the administration, strategies, challenges and problem of revenue in Osun state and the history, types and uses of infrastructure. The reasons and methods were also analyzed and solutions to these problems were dealt with.
In order to get the best out of revenue system, a lot has to be done in Osun state by creating awareness about the importance of paying taxes.
Recommendations
Based on this research work, the researcher made the following recommendations:
Establishment of projects: The state government should embark on the establishment of some mini-size industries which will provide employment opportunities to the people. There should also be development and improvement in agricultural ventures like crop farming etc. the participation in agriculture will encourage the inhabitants of this local government area to improve their standard of living.
Supply of social and economic services: Efforts of state government should not only be directed towards the revenue yielding alone but also to the provision of social services like good wards, basic health facilities, environmental sanitation, town halls, street light, water supply. These facilities should be of high quality, by doing this; the people’s interest will be geared towards giving their maximum support to the governments at all facts where such cooperation is required. Once, some of their interest are taken care of, the people will feel committed to paying to the local government all revenue due from them and this will improve the revenue strength of the local government in question.
Staff motivation: Workers should be encouraged so that they can put in their maximum services and when this is done, there will be increase or solid improvement in revenue collection. Training of workers for knowledge enhancement should be one of such motivational factors. It is fervently hoped that when the above suggestions are fully implemented, the local government will not only improve internally but also with the outside world.
This research work also recommended that the sources of revenue that are significant such as taxes, licenses, fines and fees, grants, financial aids and loans should be reconstructed and re-engineered through public awareness, keeping of accurate data and methodical manner of collection. Osun state government has great potential to become one of the most efficient and highest generated revenue government if efforts are made to improve collection and generation performance.
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