TABLE OF CONTENTS
Table of Contents viii CHAPTER ONE
1.1 Background to the Study
1.2 Statement of the Problems
1.3 Significance of the Study
1.4 Research Questions/Hypotheses
1.5 Research Methodology
1.6 Scope and Limitations of the Study
1.7 Definition Of Terms
1.8 Organisation Of The Study
1.9 Organisation of the Study
End of Chapter References
2.0 Literature Review
2.1 Research Into Current Literature
2.2 Conceptual Explanation
2.4 Collection, Enforcement, Problems and
Personal Income Tax Administration
End of Chapter References
3.0 Research and Methodology
3.1 Research Focus
3.2 Research Instrument
3.3 Restatement of Research Questions
3.4 Description of Population and Sample
of the Study and Sample Size
3.5 Sources of Data Collection
3.6 Sources of Government Revenue
3.7 Methods of Data Analysis and Description of
Tools of Analysis
End of Chapter References
4.0 Data Analysis, Interpretation and
Discussion of Findings
4.1 Interpretation of Items
4.2 Analysis of Data
4.3 Analysis of Tables
4.4 Test of Hypothesis
End of Chapter References
5.0 Summary, Conclusion, Recommendations
and Suggestions For Further Studies
5.4 Suggestion for Further Studies
End of Chapter References
The vital role which the government plays in the economic and social progress of any society is enormous. Apart from the provision of roads, pipe borne water, electricity, transport, health care system and education, government is also actively involved in direct productive activities through her ownership and control of public companies and corporations.
Ekiti state has a mixed economy in which both the public and private sectors play dominant roles. In spite of this, the government is required to play important roles in solving most of the problem confronting the economic upliftment of the state.
It is imperative, however, that Ekiti state need adequate finance to enable her achieve the above aims. One major source of revenue open to the state government is personal income tax.
The main objective of taxation is the harnessing of resources to finance developmental programmes. For example, government will be able to raise money to finance its capital and recurrent expenditure of the government owned enterprises through taxation.
1.1 BACKGROUND TO THE STUDY
Government strives for a tax system that is fair, efficient, effective and internationally competitive and yields sufficient revenue to finance its expenditure commitments. But how can these be achieved? It has been consistently advised that tax reform and tax policy must move hand in hand with efforts to ensure that the tax authorities have sufficient administrative capacity. Without solid administration, tax law and tax policy cannot be given practical effect, for this reason.
The focus of attention must authorities in the public finance fiscal centralization in revenue allocation, income tax relief scheme, tax and development with little or no use of modern quantitative technique.
The basis of social and sciences alike in my view is empirical analysis and presentation of facts for this reason.
I have decided to contribute my own fact on the problems of personal income tax could be reduced in a more elaborate form.
1.2 STATEMENT OF THE PROBLEMS
The government and therefore, must be saved from the setbacks, since we are not in an ideal world, the problems associated with personal income tax may not be completely eradicated with personal income tax but can be reduced to a manageable extent.. it is intensive of this work, therefore, to find some of the hindrances militating against the tax system and to find possible remedies, prior to this research work, the writer held the view that people avoid to pay taxes and the beards responsible for tax collection administration are just ignorant of the importance of their task the effects.
1.10 OBJECTIVES OF THE STUDY
This study is central around the PROBLEMS OF PERSONAL INCOME TAX ADMINISTRATION IN EKITI STATE and Nigeria as a whole. It is viewed by the general public that personal income tax in Nigeria has not succeed in respect of revenue generation. Therefore, the study attempts to examine the major problem militating against Personal Income Tax Administration.
The basic objective of this study is to critically examine the major problems militating against Personal Income Tax Administration with due consideration to Tax law structure, assessment and collection. Likewise, I wish to investigate to which administrative inefficiency constraints the achievement of the income Tax revenue maximization in Ekiti state as this will help in providing lasting solution through suggestions and recommendation to the improvement to give a brief and concise definition of taxation so as to save time.
1.11 SIGNIFICANCE OF THE STUDY
It is meant to highlight the importance to all beneficiaries e.g. state University. State college of education and e.t.c..
Apart from the revenue allocation form the federal government, income tax constitute the second to the largest sources of revenue to Ekiti state as over eighty percent (80%) of Ekiti state revenue comes being one of the state created in 1996 with a lot of financial commitment such as financing the Ekiti state University and the college of Education, Ikere Ekiti, execution of electrification projects, water supply and construction of roads, building of a befitting television house, construction of Trade fair complex and others.
1.12 RESEARCH QUESTIONS/HYPOTHESES
The research questions to this study are:
i. What is meant by personal income tax?
ii. What do people in Ekiti state believe to be the goal of personal income tax?
iii. Do tax payers pay willingly?
iv. Is there any motivation from government to the workers of state Board on internal Revenue?
v. Are the collectors qualified?
vi. What are the amenities that the state government provide through personal income Tax paid by taxpayers in Ekiti state
Ho: There is no positive relationship between motivation and satisfaction of employee’s needs and want leading to improvementation of their productivity
Hi: There is positive relationship between motivation and satisfaction of employee’s needs and want leading to improvementation of their productivity
Ho: There is no positive relationship between transport facilities provided by the Board of internal Revenue and better work delivery.
Hi: There is positive relationship between transport facilities provided by the Board of internal Revenue and better work delivery.
Ho: There is no positive relationship between mulling to other department or ministries for not being compensated for effective performance.
Hi: There is positive relationship between mulling to other department or ministries for not being compensated for effective performance.
1.13 RESEARCH METHODOLOGY
Various methods of data collection were used in gathering information for this project. These methods include:
1. Personal Interview: This method involved the use of interview to question and extent information from concerned officers.
2. Observation Technique: This method involve careful study of the process and methods adapted in the implementation of personal income tax and of the same time making deductions on the strength and weaknesses inherent in it.
3. Library Research: Library research involves the use of library to source for relevant books and journals in order to get relevant information on the topic of the research
1.14 SCOPE AND LIMITATIONS OF THE STUDY
This study is restricted to the Board of internal Revenue, Ado- Ekiti, Ekiti State. Some of the challenges faced by the research in the course of carrying out this research work include.
i. Difficulty in getting relevant research materials.
ii. Not all questionnaires distributed were duly completed; some
were returned by respondents to the researcher for data analysis.
iii. Financial constraint due to limited fund available to the
researcher the research findings was limited to the Board of internal Revenue.
1.15 DEFINITION OF TERMS
Chargeable Income: Is the individual total income less personal relief.
Tax Rate: Tax rate is the charge per unit of tax base. Tax base multiplied by tax rate equal to tax payable. There are three types;
a. Progressive Rate: Under this rate, the higher the income the higher the proportion of income which is taken away as tax and the lower the income the lower the proportion of income taken away as tax. In other words, in progressive tax system, the rotate of taxation increases as income increases and vice verse.
b. Proportional Rate: It is the rate which remains fixed while the tax base changed every individual bears the burden which relate to its ability.
c. Regressive Rate: It is the higher the income the lower the percentage of income which is taken away as tax and the lower the income the higher the percentage taken away as tax
Tax: This is a compulsory levy by the government in taxable income of an individual, partnership or corporate body through an appropriate unit.
Taxation: It has been defined in many forms, some of which are “the transfer of resources from the private to the public sector in order to accomplish some of nation’s economic and social goals”.
Tax Base: This is the object against which tax is levied. There are four types of tax bases
a. Consumption Base: Under this we have income tax, expenditure tax, property tax, e.g. tenement rate i.e annually levy on buildings.
b. Factor Input: Example of ground rent payable annually to the government, there are pay role tax e.g. national providence fund (NPF) a tax levied on the employer of labour.
c. Foreign Trade Base: Examples of this base are import duty and export duty.
d. Output Base: Here we have excise tax, sales tax now replaced by value added tax (VAT), purchase tax.
1.16 ORGANISATION OF THE STUDY
For clarity purposes, this research work will be divided into five chapters: the subject of the opening chapter is introduction, a review of the existing works in the area of income tax is attempted in chapter two.
A simple look at the existing works on personal income tax and other related researches make use of modern table. I therefore deemed it fit by employing the use of modern table.
I employ the use of simple table in chapter three which deals with methodology. This chapter is again sub-divided into: Tax Environment, Development of legal basis for income Tax structure and rates. Exemptions, reliefs and allowances, assessment, collection and enforcement.
Chapter four focuses attention on sources of government revenue and problems militating against personal income Tax Administration in Ekiti State.
Finally, the paper ended with the summary, conclusion, limitations and recommendation.