HomeAccounting project topics and materials for undergraduatesTHE EFFECT OF TAX ADMINISTRATION ON REVENUE GENERATION IN ENUGU STATE. (A CASE STUDY OF THE STATE BOARD OF INTERNAL REVENUE ENUGU STATE)
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THE EFFECT OF TAX ADMINISTRATION ON REVENUE GENERATION IN ENUGU STATE. (A CASE STUDY OF THE STATE BOARD OF INTERNAL REVENUE ENUGU STATE)

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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
In all generation, the problems of personal income tax generation and administration continues to surface in one form or another in virtually every society, especially in this part of the world. It is important to point out that the federal government has taken adequate steps in effective tax
administration.
This failure on the part of the federal government is responsible for poor financial positions of both the state and local government. Besides, this inadequate planning and absolute laws governing taxation, evaluation and collection is characterized by chaos.
This chaotic nature of the system can be appreciated by political influence or interferences in the process of taxation during the civilian administration in the country which gave rise to untrained and inexperienced personal being entrusted with the work of collection and administration of
personal income tax.
The important of these issues to tax administration in the developing countries like. Nigeria, can be seen from the following extract from tax  administration in under developed countries. The tax administration finds himself working with a staff which is inefficient in experienced, and poorly
paid.
BOARD OF INTERNAL REVENUE ENUGU
The board of internal revenue Enugu was established to administer income tax in Enugu state just as there are likely to states of the federation.
Income tax was first introduced in Nigeria in 1904 by late Lord Lugard.
The introduction of Native Revenue ordinance of 1927 was most difficult in the Eastern areas of the country, due mainly to absence of recognized central
Authority Resistance to this form of direct taxation in such that it result to riots notably in calabar, Owerri and the famous, Aba women Riot of 1929 which was so severe that it attracted a probe. Beside, the Native Revenue ordinance were also Native direct taxation ordinance for the colony and the
Native income tax ordinance.
These ordinance were late modified and incorporated into the Direct taxation ordinance No 29 of 1940, cap 54 and the income tax ordinance No 29 of 1943 respectively.
The direct taxation ordinance 1940 empowered native authorities to tax Africans in their areas of jurisdiction while the income tax ordinance 1943  was for the taxation of non-Africans in companies. The two ordinances were the foundation of our modern taxation which necessitated establishment of
board of internal revenue in each of the states of the federation which Enugu Board of internal Revenue is one of them…..

1.2 STATEMENT OF THE PROBLEMS
It is true that problem of tax collection and administration is universal but the third world countries of which Nigeria is one, seem to be more plagued and inflicted both in weight and magnitude than the developed nations of the world.
The research work primarily involves identifying the problems of the personal income tax generation and administration in Nigeria taking a case study of Board of Internal Revenue, Enugu state. The specific problems of this research are as follows:
1. Improper system of keeping accounts and records in the internal Revenue office, which was seen to be quite mechanical and out dated.
2. Lack of staff and inadequate training of the available tax collectors.
3. No enlightenment on the part of tax payers as regards the importance of taxation is another problem of tax generation and administration in Enugu state.
4. Tax collection and administration in Enugu state is not efficient and efficiently managed.
5. Also corrupt alliance of tax collectors with tax payers to avoid tax for them (tax collectors) to make fast money.
Thus lack of enforcement power on the board makes tax laws useless and not serious to tax offenders /defaulters.
1.3 OBJECTIVES OF THE STUDY
The general objective of the study is to asertain the effect of tax administration on revenue generation in Enugu state, using the state board of internal revenue as a case study.

The specific objectives of the research work is to
1. To examine if the use of mechanical and outdated system in recording and keeping accounts affect tax administration on revenue generation in Enugu state.
2. To ascertain whether lack of adequate staff in the SBIR affect tax administration on revenue generation in Enugu state .
3. To examine if enlightening the tax payers on the importance of taxation affect tax administration in the state.
4. To determine if the effectiveness and efficiency of personal income tax collection and administration