The Effect Of Tax Administration On Revenue Generation In Enugu State.

ABSTRACT

The amount of revenue generated in the state has been decreasing due to poor tax administration and collection, as well as a lack of proper return of accounts. These are the negative effects that affect government revenue generation, which is aimed at meeting the state’s basic functions, such as providing basic amenities to its citizens. The purpose of this research is to assess the impact of tax administration on revenue generation for the state government of Enugu. The survey research method was used in this study’s research design. Primary and secondary data sources were used to collect information, which was then analyzed using simple percentages and hypothesis tested using the chi-square statistical method at the 0.05 level of significance for validity and to test the hypothesis. Make a choice. According to the findings, there is a high incidence of tax evasion and avoidance in the state, and tax administration in Enugu state is inadequate, ineffective, and inefficiently managed, resulting in inadequate staff and facilities, which further impede tax administration and collection. In the end, the researcher came to some long-term conclusions, including: the apathy of Enugu state residents toward tax payment could be reduced by involving them in tax administration decision-making, collection, and utilization of tax revenue. Both the government and its agencies should work to improve the environment. The staff of the SBIR Enugu should be well compensated and ensure proper administration of tax laws in accordance with the rules and regulations.

CONTENTS TABLE

PAGE COVER

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PAGE TITLE

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PAGE OF APPROVAL

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DEDICATION

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ACKNOWLEDGEMENT

—————————————————————————————-iv

ABSTRACT

—————————————————————————————————————v

CONTENTS TABLE

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INTRODUCTION TO CHAPTER ONE

1.1 THE STUDY’S BACKGROUND

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1.2 THE PROBLEM’S STATEMENT ————————————————————-8

1.3 THE STUDY’S OBJECTIVE ————————————————————————9

1.4 QUESTION FOR RESEARCH ——————————————————————————-10

1.5 HYPOTHESIS STATEMENT

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1.6 THE STUDY’S SIGNIFICANCE

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1.7 STUDY OBJECTIVES

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1.8 THE STUDY’S LIMITATIONS

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1.9 TERMS AND CONDITIONS

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REVIEW OF RELATED LITERATURE IN CHAPTER TWO

2.1

GENERAL INFORMATION ABOUT THE STUDY

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17

2.2

THE HISTORY OF TAXATION

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20

2.3

ADMINISTRATION OF TAXES

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24

2.4

TAXATION’S OBJECTIVE

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27

2.5

A GOOD TAX SYSTEM’S QUALITIES

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31

2.6

TAXATION CLASSIFICATION

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34

2.7

SUGGESTIONS TO THE BOARD OF INTERNAL REVENUE

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46

2.8

ENUGU REVENUE GENERATION THROUGH TAX —————————-

48

2.9 INAPPROPRIATE STAFF AND FACILITIES IMPAIR TAX

GENERATED————

49

ENUGU STATE REVENUE

2.10 TAX EVASION AND AVOIDANCE INCIDENCE IN ENUGU STATE——

52

2.11 ENUGU STATE BOARD OF INTERNAL REVENUE EFFORTS TO

ENHANCE REVENUE GENERATION

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56

REFERENCE ————————————————————————————————————

62

RESEARCH METHODOLOGY (CHAPTER 3)

3.1 INVESTIGATION ——————————————————————- 63

3.2 DESIGN OF RESEARCH ——————————————————————- 63

3.3 RESEARCH AREA

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3.4 THE STUDY’S POPULATION ——————————————————————- 63

3.5 DATA COLLECTION SOURCES

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3.6 SAMPLE SIZE DETERMINATION ——————————————————————-65

3.7 DATA ANALYSIS METHOD ——————————————————————- 66

TEST OF VALIDITY 3.8 ——————————————————————- 68

TEST OF RELIABILITY 3.9 ——————————————————————- 68

REFERENCE

CHAPTER FOUR: DATE PRESENTATION, INTERPRETATION, AND ANALYSIS

4.1 DATA EXPRESSION

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4.2 ANALYSIS OF DATA —————————————————————————————————-70

4.3 HYPOTHESIS TEST ——————————————————————————————-83

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATIONS

RECOMMENDATION

5.1 FINDINGS SUMMARY

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5.2 CLARIFICATION

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RECOMMENDATION 5.3 ——————————————————————————————-96

BIBLIOGRAPHY

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APPENDICES

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CHAPTER ONE

INTRODUCTION

1.1                BACKGROUND OF STUDY

Administration persists in one form or another in almost every society, particularly in this part of the world. It is critical to emphasize that the federal government has taken adequate steps to ensure effective tax administration.

This failure on the part of the federal government is to blame for the state and local governments’ poor financial positions. Furthermore, the lack of planning and absolute laws governing taxation, evaluation, and collection creates chaos.

This chaotic nature of the system can be seen in the political influence or interferences in the taxation process during the country’s civilian administration, which resulted in untrained and inexperienced personnel being entrusted with the task.

Personal income tax collection and administration.

The significance of these issues in tax administration in developing countries. The following tax extract from Nigeria demonstrates this.

Administration in developing countries. The tax administration is working with a staff that is inefficient, inexperienced, and underpaid.

ENUGU INTERNAL REVENUE BOARD

The board of internal revenue Enugu was established to administer income tax in Enugu state, as it is likely in other federation states.

Late Lord Lugard introduced income tax in Nigeria for the first time in 1904. The introduction of the Native Revenue Ordinance of 1927 was most difficult in the country’s eastern areas, owing primarily to the lack of a recognized central authority. aversion to

This type of direct taxation caused riots, most notably in Calabar, Owerri, and the famous Aba women’s riot of 1929, which was so severe that it prompted an investigation. Aside from the Native Revenue ordinance, the colony also had a Native direct taxation ordinance and a Native income tax ordinance.

These ordinances were later amended 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 of 1940 empowered native authorities to tax Africans in their areas of jurisdiction, while the income tax ordinance of 1943 empowered native authorities to tax Africans in their areas of jurisdiction.

was in favor of taxing non-Africans in corporations. The two ordinances formed the basis of our modern taxation, necessitating the establishment of

Each state of the federation has a board of internal revenue, one of which is the Enugu Board of Internal Revenue.

THE ADMINISTRATIVE STRUCTURE OF ENUGU STATE’S BOARD OF INTERNAL REVENUE

The administration chain in the state board of internal revenue

THE BOARD’S SECREATARY

INTERNAL REVENUE BOARD

THE EXECUTIVE CHIEF

LEGAL UNIT INFORMATION UNIT SPECIAL ASSESSMENT UNIT

PR DEPARTMENT OF ADMINISTRATION

ASSEMBLY

COLLECTION

INSPECTORATE

FINANCE

& SUPPLY DEPARTMENT PLANNING% STATISTICS

DEPT

DEPT

DEPT

ACCT DEPARTMENT

This type of direct taxation caused riots, most notably in Calabar, Owerri, and the famous Aba women’s riot of 1929, which was so severe that it prompted an investigation. Aside from the Native Revenue ordinance, the colony also had a Native direct taxation ordinance and a Native income tax ordinance.

These ordinances were later amended 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 of 1940 empowered native authorities to tax Africans in their areas of jurisdiction, while the income tax ordinance of 1943 empowered native authorities to tax Africans in their areas of jurisdiction.

was in favor of taxing non-Africans in corporations. The two ordinances formed the basis of our modern taxation, necessitating the establishment of

 

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