Problems of Tax Collection in Nigeria
Chapter One
OBJECTIVE OF THE STUDY
The broad objective of the research is to examine the problems of taxation as a source of government revenue in Nigeria, a case study of Uyo LGA. The other objective of this study includes:
- To examine the effect of tax collection on Uyo local government revenue
- To find out if effective taxation system enhance Uyo local government
- To investigate the authority responsible for collection of tax in Uyo local government
- To make useful suggestions to solve the problem of poor tax collection as development depends on revenue generated.
CHAPTER TWO
REVIEW OF LITERATURE
INTRODUCTION
Our focus in this chapter is to critically examine relevant literatures that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.
Conceptual Framework
Adebayo (2004) defined taxation is the legal demand made by the Federal Government or State government for its citizens to pay money on income goods and services. In a less complex society in which the government has few duties and responsibilities, the financial need of the government are minimal. However, as society becomes complex the need of the people becomes greater and the government assures greater responsibility the financial needs of the government becomes great. Consequently, taxes increase and their effect on the economy becomes more important. In the past, government has utilized taxation as an instrument of regulating the general economy. Since income tax provide large source of national revenue. Effect on inflation, unemployment and social and economy objective has become the prime consideration in enacting tax law in Nigeria. Taxation in an aggregate definition is mandatory contribution from the people to generate revenue for the government; use in financial it’s capital project and recurrent expenditure. A renown tax authority in his book “Principle of Public Finance” Dr. H. Dalton define tax as a compulsory contribution imposed by a public authority, in respect of the exact amount of services rendered to the tax payer in return” according to Professor Seligman, a tax is compulsory contribution from a person to the government to defray the expenses incurred in the common interest of all, without reference to special benefit conferred. From the above concept, the following are therefore the global objective of taxation and avoidance.
- To persecute the tax law very vigorously thereby deterring tax evasion and avoidance.
- To recognize the tax official’s as important human asset in achievement of the said objective.
- To collect tax according to the law as means as possible and to the actively encouraging voluntary competence.
HISTORY OF TAXATION IN NIGERIA
Taxation is an age long concept which dates lack to the pre-colonial era in Nigeria (Claro,2012). Taxes where paid through different kinds of manual labour for the entire community benefit. Some examples of such services are clearing of bushes, digging of pit toilet, well etc for the benefit of the community as a whole. Failure to render such services usually resulted in seizing of property which will be claimed only on payment of money. For example, the best house at Iseyin, which is inherited by Oyo State Government was said to have been built between 1916 and 1932 after the Iseyin riot of 1916, under the supervision of Captain W. Rose, the resident district officer and Mr. Yerokun, the case taker. In 1904, during the colonial rule, late Lord Lugards government introduces income tax to Nigeria and community tax was being paid in Sokoto caliphate, northerner Nigerian. The Ordinance of 1917, 1918 and 1928 were later incorporated into the Direct Taxation Ordinance of No. 4 of 1940 which replace the native revenue Ordinance. During this period, the board of constituted, comprising of the following:-
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 the problems of tax collection in Nigeria using Uyo local government in Akwa Ibom State as a case study. Selected staff of Uyo local government council form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
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 thirty-six (36) questionnaires were administered to respondents of which only thirty (30) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 30 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
SUMMARY
In this study, our focus was to examine problems of tax collection in Nigeria in Uyo local government as a case study. The study specifically was aimed at highlighting the effect of tax collection on Uyo local government revenue. find out if effective taxation system enhance Uyo local government.To investigate the authority responsible for collection of tax in Uyo local government. make useful suggestions to solve the problem of poor tax collection as development depends on revenue generated in Akwa Ibom state. A total of 30 responses were validated from the enrolled participants where all respondent are drawn from staffs of Uyo local government council.
CONCLUSION
Based on the finding of this study, the following conclusions were made:
taxation has any effect on local government revenue
effective taxation system enhance local government development
there are authority responsible for collection of tax in Uyo local government
There are ways to solve the problem of tax collection in Nigeria
RECOMMENDATION
Based on the responses obtained, the researcher proffers the following recommendations:
- The government should ensure that tax administration is handled by professionals and trained personnel. The personnel of the tax authorities of each of the three tiers of the government should be trained and retrained to bring the best from them and also instil discipline on them.
- Introduction of tax technology. Filling and payment online should be introduced in Nigeria as this will reduce the time of compliance and cost associated to it and should also accept tax technology in support of electronic remittances and filling of returns which will ease the burden on taxpayers, ease human contact existing between the taxpayers and the tax officials This can assist in checking sharp practices and make doing business easier.
- Tax awareness and communication. There is the urgent need for public enlightenment. The media should be effectively used to communicate the existing and new tax laws, the need for compliance and the penalty for defaulters. This is because most tax payers are not informed or are ill-informed.
REFERENCES
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