Tax As A Source Of Revenue To The Federal Government Of Nigeria

TAX AS A SOURCE OF REVENUE TO THE FEDERAL GOVERNMENT OF NIGERIA

Abstract

The purpose of this term paper is to investigate how the Nigerian federal government operates its tax system as a source of revenue. It is an effort to draw attention to some of the key obstacles that frequently prevent the realization of income throughout the tax assessment and collection process.

The study’s purpose, significance, scope, and restrictions will all be covered in chapter one of this document along with a description of words.The definition, history, and purposes of taxes are all covered in chapter two.The presentation of summary, conclusion, and recommendation concludes chapter three. When the term paper is finished, it will aid tax payers in understanding the significance of paying taxes.

Chapiter 1

Introduction

1.1 Purpose Of The Study

One of the goals of this initiative is:

A. Improving the methods used by the federal government for tax assessment and collection. This is due to the fact that if the methods are enhanced. Government revenue will increase.

B. Analyzing the level and role of taxation in the economic development of Nigeria’s federal government.

C. Listing the issues that the federal level of tax assessment and collection face.

D. Making helpful recommendations for resolving tax-related issues.

E. Outlining possible taxation techniques so that the public can understand the purpose and worth of the taxes they pay.

1.2 The Criticality Of Study

When this term paper has been fully studied, it will assist tax payers in understanding the significance of paying taxes.

One of the main ways that the concerned federal government generates money is through income tax. In the form of social amenities like pipe-borne water, electricity, health facilities, good roads, schools, market buildings, etc., the taxes collected are returned to the tax payers. These are the things they gain by paying taxes.

The tax payers’ societal benefits from income tax include alleviation. The relief has an impact on the social makeup of all federal tax payers. Personal relief, relief with regard to children, and tuition relief on insurance payments and dependent family members are among the reliefs.

The Nigerian government allocates the funds obtained from the imposition of an income tax to certain items or initiatives, such as justice, etc. Typically, a portion of the tax money is given away as income tax earnings in the form of an old-age pension or the payment of a worker’s sickness benefit.

It is assumed that a portion of the increased revenue will be used to finance a large volume of indivisible services and a portion will be used to pay money benefits to its dependents, in order to increase their consumption, when governments tax and revenue increases through an increase in the height of income tax.

By providing for themselves those economic variables that are the duty of the person, tax income helps the federal government council to have the great bulk of cash needed for their development and thereby remain independent of other minor sources of revenue.

A few economic variables include: agriculture, adult education, construction of quality roads, etc.

The study will be used to a considerable part to guide future research studies in terms of how to conduct their research and how to approach examining them.

Additionally, it makes suggestions that, if put into action, might confront, expose, and most importantly, inspire both sides.

1.4 Terminal Definitions

Tax has been defined in a variety of ways by writers. Block 1939, according to Ducan. “Paying taxes is the act of giving a percentage of one’s income to the government on one’s own behalf.

It was described as a profit sharing arrangement between the government entity and the business owners by J.M. Smith and K.F. Shovson.