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The Problems And Prospects Of Company Income Tax Administration In Nigeria
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4.
EFFICIENCY AND EFFECTIVENESS:-Horngreen (1984) defines efficiency as an
optimum relation between input and output whereas effectiveness is the
accomplishment of pre-date runnined objective. Tax collected can only be
said to be effective when a high proportion is actually collected.
Similarly for efficiency and assessment should be less than the revenue
accruing from such expenditure.
5. FEDERAL INLAND REVENUE SEVICE
(FIRS):- This is the body set up by section 5.1 of ITA (1979) and
charged with the overall administration of companies income tax act.
6.
INCOME:- There is no statement that defines the word `` income`` in
taxation status. However, for the purpose of this study reference is
made to section 5.4 (2) (6) of income tax management act (ITMA)1961,
which recognizes income as including any amount deemed to be income
under the act.
7. TAX ARRERS:- These are assessment of tax during the
preceding period whose payment are received at the current assessment
period.
8. TAX AVOIDANCE:- This is the arrangement of the affairs of
the tax payer in such a way as to reduce tax payable. Tax avoidance is
not a criminal or crime punishable under the law. This was clearly
stated in Lord Tumbling declared as follows in his judgement
Every
man is entitled to order his affair so that the tax attached under the
appropriate tax act is less than is otherwise would be.
According to Longman Dictionary of contemporary English, tax avoidance are Legal way of paying less tax.
9. TAX BASE:- This is simply that object on which tax should be imposed or applies.
10.
TAX EVASION:- Is a fraudulent, dishonest intentional distortions or
concealment of fingers by the tax payer in order to reduce the tax
payable. It is a criminal and deceitful was of not paying tax or
reducing ones tax liability. These offences are punishable under law.
According to Longman Dictionary of contemporary English Tax evasion are the illegal ways of paying less tax.
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