CRITICAL STUDY AND ANALYSIS OF THE INSTITUTIONAL AND ADMINISTRATIVE CONTRITION IN THE TAX ADMINISTRATION IN NIGERIA.
CRITICAL STUDY AND ANALYSIS OF THE INSTITUTIONAL AND ADMINISTRATIVE CONTRINT IN THE TAX ADMINISTRATION IN NIGERIA.
Taxation is one of the source of income for the government; such income is used to finance or run public utilities and perform over social responsibilities. Taxation is based on laws, which invariably turn to figures, and finally ends up in paying money to government purse as a contribute to the provision of public utilities. The surpassingly low amount realized from taxation, is due to inability to enforce the law, lack of adequate knowledge or know-how to tackle issue, the almost non existence of adequate follow-up earnings and fraudulent behaviour of tax-paper sometimes with the collusion or callaboration of tax officials. The laws have been revised and amended from times to time to block loopholes, evation and avoidance but to no avail. This has invariably contibute to a lot to considerable loss or revenue. The research us to investigate the administrative and institutional constrains germane to tax administration in Nigerian and particularly to study and analyzed the causes of low tax revenue being realized from taxation and profiled situations. In doing so, appropriate research questions have been developed far that purpose.
CHAPTER ONE
CHAPTER TWO
2.6 TAX OFFENCES AND PENALITIES
CHAPTER THREE
CHAPTER FOUR
CHAPTER FIVE
REFERENCE
APPENDIX.
Taxation is accepted as the most reliable source of revenue a nation can boast of. This fact has become established since the absent of any other sources of revenue, tax becomes incontrovertibly the only source of revenue. Taxation therefore is one of the source of in come for government, such income is used to finance or run public utilities and perform other social responsibilities. The best and perhaps most precise definition of taxation is that, it is a tax on income- howsoever defined.
Taxation is in two different fields, direct and indirect. Direct taxations is the case where the personals paying is (are) asked to pay for no particular services.
Indirect taxation is paid when one asks for services or supplies of goods for example.
Taxation is based on laws, which invaribaly turn to figure and finally ends up in paying money to government purse as a contribution to the provision of public utilities levies.
Some state governments in order to increase their income base have introduced LEVIES. This, by itself, is a form of taxation. It however, depends on the objective of the levy, in other to classify it as either direct or indirect.. for instance, education levy is direct taxation if paid by those who have children in schools but indirect it is a general charged on the society at large.
Petroleum profit tax
Personal income tax
Company income tax
Capital gains
Capital transfer tax (abolished in 1996)
Also, some of this indirect taxes which are common to the state and federation and organizations, are:-
Sales Tax – VAT
Industrial Training Fund (ITF)
National Social Insurance Trust Fund
Customs and Excise Duties
Entertainment tax
Pools and casino taxes
Stamp duties.
There is justification for taxation, governments generates, engage in a number of activities requiring the expenditure of funds. In order to be able to undertake most of these activities, government raised funds through taxations. Hence, it can also be defined as compulsory contribution from individuals and/or business organizations for the purpose of financing government expenditure. Taxation is based upon certain basic principles, which have become generally accepted. Adam Smith laid down what came to be known as the cannons of taxation, In 1976. In his mind, these are the principles include the following:
-Equity principle
Besides there is the “Traditional principle, which is based on the combination of Adam Smith “Equity principle” and J.S. Mill’s “Benefits principles” of taxation.
The above principles are essential because they tend to balance the need for fund to meet government activities and the burden of taxation on the citizens. It is however depend upon the degree and fairness with which the principles are applied by tax officials of the government.
The success of any tax system lies in the way and manner it is administered. Proper tax administration ensures that the above mentioned principles of taxation are correctly applied by balancing the government interest for funding with the people’s interest. The above condition is reached when the tax payers suffer fairly and equitably tax burden while the government realizes a reasonable level of tax revenue to finance its activities.
For the purpose of proper application of the principles of taxation, government create tax administration-Boards, Authorities, Courts, Tribunals, Appeal Commissioners and training and appointment of skilled personnel and officials to man these institutions, plus the issue of guidance to ensure proper application. Sanctions and penalties are prescribed for tax offenders includes fines and terms of imprisonment.
This means that tax administration is done by:
Tax administration in Nigeria follows the above stated rules and procedures. Several tax laws have been enacted; various tax institutions have been established; there are manned by various cadre of personnel, guidelines are issued to ensure proper application of rules, there are courts, appeal commissioners are created from time to time to review tax laws. The federal government operates through the medium of the federal Inland Revenue and local governments through the medium of there revenue departments.
There is no doubt that administration in Nigeria is bedeviled by a lot of institutional and administration constraints that adversely affect the amount of tax revenue to the government. In this project, attempt is made to identify, investigate and analyze these constraints and seek solutions. The result of the research would promote efficiency and effectiveness in tax administration in Nigeria.
Tax administration in Nigeria is affected by a number of constraints. The problems, which are the basic concern here, are as described below.
The supremely law amount realized from taxation is due to inability to enforce the law, lack of adequate knowledge or known how to tackle issue, the almost non-existence of adequate follow-up of earnings and fraudulent behaviours of tax-payers. Sometimes with the collection or collaboration of tax officials. The laws left un-revised or amended to block loopholes, evasion and avoidance. This has inevitably contributed a lot to considerable loss of revenue. Both the inland and internal revenue on their practices do not issue up to date guidelines or statements on their own part and in some cases, certain issues have to be argued for unreasonably long period. Where the guideline exist, unlike in advanced countries, they are not made known to tax-payers or their consultants. Besides, in tax offices tax payers and their consultants are subjected to bribes before files and tax documents are processed. Tax officials under-assess tax payers and collect bribes at the expenses of government sides, no enabling laws are enacted to back charges in tax policies made during annual budgets. This made it difficulties for the institutional to enforce or executes the charges announced.
In fact, many problems affect that administration in Nigeria. On the part of auditors of companies, it is found that auditors prepare false accounts showing losses instead of profits. This supporting their crants to evade taxation. All these contribute in making tax administration very difficult in Nigeria.
For the purpose of gathering sufficient and reasonable data for the purpose research, these questions will be used.
For the purpose of this research, the following hypothesis will be tested.
As stated earlier, there is no doubt that tax administration in Nigeria is bedeviled by a lot of factors, which adversely affect tax revenue. These constraints are investigated, identified and analyzed and solutions will have reaching effect in the improvement of our tax administration system. The result of the research would enhance efficiency and effectiveness in tax assessment, collection and accountability, as well as increased tax revenue to government. Improve tax revenue to government will raised the level of social services and public utilities provides by government and improve the welfare and social well being of our people.
Due to constraints or limitations associated with this project as stated in (1.9), this research will concentrates on some of institutional and administrative constraints affecting tax administration in Nigeria. In particular these issues are discussed institutional procedures for tax administration, major tax laws, and their amendments, tax assessment procedures, tax offences and penalties, tax incentives, tax clearance certificates; errors or defects in notices, best of judgement (BOJS), artificial transaction, tax year, tax evasion and avoidance and appeal procedures, this range covered is quite and reasonably adequate for the purpose of the research.
For the purpose of this research these terms, which are common with the work are hereby defined to facilitate understanding of the content and issued addressed.
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THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
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ABSTRACT
Taxation is one of the source of income for the government; such income is used to finance or run public utilities and perform over social responsibilities. Taxation is based on laws, which invariably turn to figures, and finally ends up in paying money to government purse as a contribute to the provision of public utilities. The surpassingly low amount realized from taxation, is due to inability to enforce the law, lack of adequate knowledge or know-how to tackle issue, the almost non existence of adequate follow-up earnings and fraudulent behaviour of tax-paper sometimes with the collusion or callaboration of tax officials. The laws have been revised and amended from times to time to block loopholes, evation and avoidance but to no avail. This has invariably contibute to a lot to considerable loss or revenue. The research us to investigate the administrative and institutional constrains germane to tax administration in Nigerian and particularly to study and analyzed the causes of low tax revenue being realized from taxation and profiled situations. In doing so, appropriate research questions have been developed far that purpose.
CHAPTER ONE
- INTRODUCTION
- BACKGROUND OF THE STUDY
- STATEMENT OF THE PROBLEM
- OBJECTIVE OF THE STUDY
- RESEARCH QUESTION
- RESEARCH HYPOYHESIS
- SIGNIFICANCE OF THE STUDY
- SCOPE OF THE STUDY
- DEFINITION OF TERMS
CHAPTER TWO
- LITERATURE REVIEW
- BRIEF HISTORY OF TAXATION IN NIGERIA
- FORMS OF TAXATION
- PERSONAL INCOME TAX
- COMPANY TAX
- PETROLEUM PROFIT TAX
- CAPITAL GAIN TRANSFER
- CAPITAL TRANSFER TAX
- IMPORT DUTIES
- EXCISE DUTIES
- VALUE ADDED TAX
- TYPES OF TAX
- PROCESS TAX
- PROPORTIONAL TAX
- REGRESSIVE TAX
- THE PURPOSE OF TAX ADMINISTRATION
- INSTITUTIONAL PROCEDURE FOR TAX ADMINISTRATION
- MAJOR TAX LAWS AND AMENDMENT
- TAX ADDESSMENT PROCEDURES
- PAYMENT
- COLLECTION OF PAYMENT
- MODE OF PAYMENT
- SERVICES OF TAX PAPERS
- BRIEF HISTORY OF TAXATION IN NIGERIA
2.6 TAX OFFENCES AND PENALITIES
- TAX INCENTIVES
- TAX CLEARANCE CERTIFICATE
- ERROS AND DEFECT IN NOTICES
- BEST OF JUDGEMENT
- ARTIFICIAL TRANSACTIONS
- TAX YEAR
- ADMINISTRATION AND INSTITUTIONALCONSTRAINT
CHAPTER THREE
- RESEARCH METHODOLY
- POPULATION OF STUDY
- INSTRUCTMENT FOR DATA COLLECTION
- DESIGN OF STUDY
- METHOD OF DATA COLLECTION
- SAMPLE AND SAMPLING TECHNIQUES
- METHOD OF DATA ANALYSIS
CHAPTER FOUR
- ANALYSIS OF DATA
- DATA PRESENTATION
- TESTING OF RESEARCH QUESTION
- ADMINISTRATIVE BODY OF TAX
- ASSESSMENT OF TAX IN NIGERIA
CHAPTER FIVE
- DISCUSSION, RECOMMENDATION AND CONCLUSION
- DISCUSSION FOR FINDING
- RECOMMENDAION
- CONCLUSION
- LIMITATIONOF THE STUDY
REFERENCE
APPENDIX.
CHAPTER ONE
INTRODUCTION
- BACKGROUND
Taxation is accepted as the most reliable source of revenue a nation can boast of. This fact has become established since the absent of any other sources of revenue, tax becomes incontrovertibly the only source of revenue. Taxation therefore is one of the source of in come for government, such income is used to finance or run public utilities and perform other social responsibilities. The best and perhaps most precise definition of taxation is that, it is a tax on income- howsoever defined.
Taxation is in two different fields, direct and indirect. Direct taxations is the case where the personals paying is (are) asked to pay for no particular services.
Indirect taxation is paid when one asks for services or supplies of goods for example.
| Types | Activities |
| Sales or purchase tax vat | Buying and selling |
| Entertainment tax | Cenema and theatre |
| Excise duty | Manufacture |
| Airport tax | travelling |
Taxation is based on laws, which invaribaly turn to figure and finally ends up in paying money to government purse as a contribution to the provision of public utilities levies.
Some state governments in order to increase their income base have introduced LEVIES. This, by itself, is a form of taxation. It however, depends on the objective of the levy, in other to classify it as either direct or indirect.. for instance, education levy is direct taxation if paid by those who have children in schools but indirect it is a general charged on the society at large.
NIGERIAN BASIC TAXES
The current direct taxes in Nigeria are:-
Petroleum profit tax
Personal income tax
Company income tax
Capital gains
Capital transfer tax (abolished in 1996)
Also, some of this indirect taxes which are common to the state and federation and organizations, are:-
Sales Tax – VAT
Industrial Training Fund (ITF)
National Social Insurance Trust Fund
Customs and Excise Duties
Entertainment tax
Pools and casino taxes
Stamp duties.
There is justification for taxation, governments generates, engage in a number of activities requiring the expenditure of funds. In order to be able to undertake most of these activities, government raised funds through taxations. Hence, it can also be defined as compulsory contribution from individuals and/or business organizations for the purpose of financing government expenditure. Taxation is based upon certain basic principles, which have become generally accepted. Adam Smith laid down what came to be known as the cannons of taxation, In 1976. In his mind, these are the principles include the following:
-Equity principle
- Conventions principle
- Certainty principle
- Economy principle.
Besides there is the “Traditional principle, which is based on the combination of Adam Smith “Equity principle” and J.S. Mill’s “Benefits principles” of taxation.
The above principles are essential because they tend to balance the need for fund to meet government activities and the burden of taxation on the citizens. It is however depend upon the degree and fairness with which the principles are applied by tax officials of the government.
The success of any tax system lies in the way and manner it is administered. Proper tax administration ensures that the above mentioned principles of taxation are correctly applied by balancing the government interest for funding with the people’s interest. The above condition is reached when the tax payers suffer fairly and equitably tax burden while the government realizes a reasonable level of tax revenue to finance its activities.
For the purpose of proper application of the principles of taxation, government create tax administration-Boards, Authorities, Courts, Tribunals, Appeal Commissioners and training and appointment of skilled personnel and officials to man these institutions, plus the issue of guidance to ensure proper application. Sanctions and penalties are prescribed for tax offenders includes fines and terms of imprisonment.
This means that tax administration is done by:
- Making tax laws.
- Creating tax institutions, and
- Empowerment of these institutions to execute and enforce the tax laws as set out. This involves tax assessment, tax collection and prosecution of tax offenders.
Tax administration in Nigeria follows the above stated rules and procedures. Several tax laws have been enacted; various tax institutions have been established; there are manned by various cadre of personnel, guidelines are issued to ensure proper application of rules, there are courts, appeal commissioners are created from time to time to review tax laws. The federal government operates through the medium of the federal Inland Revenue and local governments through the medium of there revenue departments.
There is no doubt that administration in Nigeria is bedeviled by a lot of institutional and administration constraints that adversely affect the amount of tax revenue to the government. In this project, attempt is made to identify, investigate and analyze these constraints and seek solutions. The result of the research would promote efficiency and effectiveness in tax administration in Nigeria.
- STATEMENT OF THE PROBLEMS
Tax administration in Nigeria is affected by a number of constraints. The problems, which are the basic concern here, are as described below.
The supremely law amount realized from taxation is due to inability to enforce the law, lack of adequate knowledge or known how to tackle issue, the almost non-existence of adequate follow-up of earnings and fraudulent behaviours of tax-payers. Sometimes with the collection or collaboration of tax officials. The laws left un-revised or amended to block loopholes, evasion and avoidance. This has inevitably contributed a lot to considerable loss of revenue. Both the inland and internal revenue on their practices do not issue up to date guidelines or statements on their own part and in some cases, certain issues have to be argued for unreasonably long period. Where the guideline exist, unlike in advanced countries, they are not made known to tax-payers or their consultants. Besides, in tax offices tax payers and their consultants are subjected to bribes before files and tax documents are processed. Tax officials under-assess tax payers and collect bribes at the expenses of government sides, no enabling laws are enacted to back charges in tax policies made during annual budgets. This made it difficulties for the institutional to enforce or executes the charges announced.
In fact, many problems affect that administration in Nigeria. On the part of auditors of companies, it is found that auditors prepare false accounts showing losses instead of profits. This supporting their crants to evade taxation. All these contribute in making tax administration very difficult in Nigeria.
- OBJECTIVE OF THE STUDY
- To investigate if the tax in Nigeria is adequate to ensure efficient and effective tax administration.
- To ascertain the cause of low tax revenue to government.
- To protect home industry by imposing discriminating tariffs.
- To assist in economic planning, for example, encourage exports or stimulating specific industries.
- To achieve desirable social ends, example, discourage excessive smoking or drinking.
- RESEARCH QUESTIONS
For the purpose of gathering sufficient and reasonable data for the purpose research, these questions will be used.
- Are tax laws in Nigeria adequate to achieve government taxation tax objectives?
- Do tax administrators and official in Nigeria comply with tax laws, rules, regulations and guidelines?
- What do you think can be done to faster high tax revenue to government of Nigeria?
- Are tax officials and personnel in Nigeria adequately motivated and remunerated?
- In your unbiased opinion, what do you think is responsible for poor performance and fraudulent practices of tax personnel in Nigeria?
- Does adequate internal control system and internal check exist to ensure accountability of tax revenue in Nigeria?
- In your assessment, do tax agencies and institutions in Nigeria have adequate manpower interms of quality skill and number of personnel?
- Do tax officials and personnel receive adequate and relevant training in their jobs?
- What factors, methods and practices do you think you could be introduced to improve better performance of our taxation?
- In your opinion, does poor and fraudulent accounting and recording system have any impact on the tax revenue generated?
- RESEARCH HYPOTHESIS
For the purpose of this research, the following hypothesis will be tested.
- Ho: Widespread and brazen corruption is responsible for tax revenue in Nigeria
- Hi: Widespread and brazen corruption is not responsible for low tax revenue in Nigeria.
- SIGNIFICANCE OF THE STUDY
As stated earlier, there is no doubt that tax administration in Nigeria is bedeviled by a lot of factors, which adversely affect tax revenue. These constraints are investigated, identified and analyzed and solutions will have reaching effect in the improvement of our tax administration system. The result of the research would enhance efficiency and effectiveness in tax assessment, collection and accountability, as well as increased tax revenue to government. Improve tax revenue to government will raised the level of social services and public utilities provides by government and improve the welfare and social well being of our people.
- SCOPE OF THE STUDY
Due to constraints or limitations associated with this project as stated in (1.9), this research will concentrates on some of institutional and administrative constraints affecting tax administration in Nigeria. In particular these issues are discussed institutional procedures for tax administration, major tax laws, and their amendments, tax assessment procedures, tax offences and penalties, tax incentives, tax clearance certificates; errors or defects in notices, best of judgement (BOJS), artificial transaction, tax year, tax evasion and avoidance and appeal procedures, this range covered is quite and reasonably adequate for the purpose of the research.
- DEFINITION OF TERMS
For the purpose of this research these terms, which are common with the work are hereby defined to facilitate understanding of the content and issued addressed.
- Taxation: This is a compulsory contribution from individuals and business organizations for the purpose of financing government expenditure.
- DIRECT TAX: These are taxes levied directly on individuals and business firms.
- INDIRECT TAX: These are taxes levied on goods and services
- EQUITY PRINCIPLES: This implies that tax burden must be felt equally. Both the rich and the poor must share in the severity of the tax in on equitable manner. The equity principle requires that, the bigger a person income, the bigger should be his tax payment.
- CONVENIENCE PRINCIPLE: This states that tax imposed must be capable to being collected with convenience, meaning that those who are liable to be taxed, must be easily located, their income accurately assessed and there must be little or no room for evasion.
- CERTIANTY PRINCIPLE: This means that any one to be taxed must know how much he is expected to pay; and the amount to be paid, must not be subjected to the whines and caprice of single individuals.
- ECONOMY PRINCIPLE: The cost of collecting the tax must not be so high as to be almost equal to the amount of tax to be collected. This may wipe out any benefit to be derived from the tax revenue.
- BEST OF JUDGEMENT: Where a person refuses or fails to declare his income, the relevant tax authority may assume or estimate such income and raised an assessment there this known as a best of judgement.
- ARTIFICIAL TRANSACTIONS: A transaction is said to be artificial if it is not made on terms, which might fairly have been expected of independent companies or persons engaged in the same or similar activities dealing with one another at arms length.
- TAX CLEARANCE CERTIFICATE: Tax clearance certificate came into being in Nigeria in 1978 by government pronouncement. Enabling legislation as to the pronouncement and demand for tax clearance certificate for certain transactions with government agencies came into being on 1 January 1985 (S.S.132 14.F) (MTP) decree 1985. This certificate should issued by the relevant tax authority after all satisfaction that the person or company has paid its tax due. Its validity is one year; from 1st January to 31st December of each year.
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COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
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Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
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