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The Effectiveness Of Tax Administration In Nigeria
[A CASE STUDY OF THE FEDERAL BOARDS OF INLAND REVENUE ILORIN, KWARA STATE]
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1.4 RESEARCH QUESTIONS
Research questions can be defined as the specific purpose of the study stated in form of questions put forward in order to discover facts. Some important questions relevant to this research are as follows:
a) Has taxation as a fiscal policy took been effective in achieving the stabilization objectives of the economy.
b) Why do tax payers evade tax? Or why is there no voluntary tax compliance among tax payers?
c) Has the introduction of tax clearance certificate helped to reduce the high rate of tax evasion?
d) Can a tax payer reduce his tax liabilities without necessary evading tax?
e) With the employment of qualified personnel or training of existing officers improve tax collection?
1.5 RESEARCH HYPOTHESIS
Hypothesis can be defined as a conjectural or tentative statement on the relationship between two or more variables.
Hypothesis is usually means to an end for the purpose of this research; the following hypothesis will be tested for acceptance or rejection.
(1) Ho: Tax administration/management is not effective in Nigeria.
H i: Tax administration/management is effective in Nigeria
(2) Ho: Tax clearance certificate is not an effective tool to check tax evasion
Hi: Tax clearance certificate is not an effective tool to check tax evasion.
1.6 SIGNIFICANCE OF THE STUDY
It helped that this research work will be of great benefit to the government, tax consultants, policy makers, researchers that might be interested in making research on this topic, tax administrator’s students of public finance and taxation and the general public at large.
1.7 SCOPE OF THE STUDY
This is to appraise how the count could have an effective tax administration. The appraisal of taxes will be under the direct and indirect tax system acts have been enacted to regulate the administration has been shared between the federal, state and local governments.
The result of the appraisal of the strength and weakness of the present tax system will help in proffering workable solutions as the way forward.
1.8 LIMITATION OR STUDY CONSTRAINTS
The study obviously cannot cover all the geographical area of the country, hence, the Federal Board of Inland Revenue (FBIR) is used as the case study. Data collection is also limited to twenty (20) Because of these. The study will only limit to Federal Board Inland Revenue (FBIR) Ilorin, Kwara State.
1.9 DEFINITION OF TERMS
1) Direct Tax: this is a tax that is levied on the income, profits and gains of individuals and companies. In a direct tax system, the person who pays the tax bears the tax burden. Example includes personal income tax, companies income tax, petroleum profit tax.
2) Fiscal Policy: This is a part of government activities that deals with revenue generation and expenditure in an economy that is the policies that regulate such activities.
3) Indirect tax: This tax is levied on goods and services produced, under indirect tax system, the tax burden is usually shifted to the final consumer of goods and services. Examples include import duty, excise duty, value added tax e.t.c
4) Relevant Tax Authority: The relevant tax authority is a body responsible under law of a territory to impose tax on incomes or profits of individuals and companies.
5) Tax: This is a compulsory levy imposed on income of individuals and companies by the government.
6) Taxation: This is a system or the process of levying and collection of money by taxes.
7) Tax Avoidance: This occurs where a tax payer arranges his financial affair in such away as to reduce his tax liability such as capitalizing on the loopholes in tax laws to his own advantage.
8) Tax Clearance: This is a document issued to a tax payer after the tax authority is of the opinion that tax assessed on the income of a person for the three years immediately proceeding the current year of assessment has been fully paid or that no tax is due on such income.
9) Tax Evasion: This is a dishonest means whereby the tax payer try to reduce his tax liability through the use of illegal means such as omission of source(s) of income of a tax payer from his returns etc
10) Taxpayer: This is any individual, corporation sole, trustee or executor, having any income, which is chargeable to the tax under the provision of the act.
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTThe project title: effectiveness of tax administration in Nigeria is meant to explain in details the administration and management of tax in Nigeria fails means to enlighten and farouse consciousness on the students who intend going into the profession on the challenges besetting effective administration of tax in Nigeria and practical way by which it can be combated. Chapter one deals with the introduction , statement of the problem , scope and justification of t ... Continue reading---
