It is well known fact that there are numerous
problems inherent in the Nigeria Personal Income Tax System. With the present
economy, a lot of problem emanated from the assessment, collection and
management of personal income tax. Personal income tax is a source of revenue
to 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
but can be reduced to a manageable extent. It is intension 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. An in-depth research carried out into the system revealed, among
others, people do not show commitment in this respect due to lack of adequate
trained personnel in Nigerian laws and other laid down principles are not
Table of contents
background of the study
statement of problem
objective of the study
significance of study
delimitations, scope and limitation
definition of terms
Review of the related literature
meaning of taxation and it’s origin in Nigeria
importance of taxation in Nigeria
attributes of good taxation
effects of taxation
the organizational structure of board of internal revenue
offences and penalties
problem of personal income tax
BACKGROUND OF THE STUDY
Having witness in the past and recent time,
the problems associated with personal income tax collection and management has
become issue of great concern. In the past, only little attention was given to
this problem, but as implication becomes more and more glaring nowadays, export
and researchers have seen the need for a lasting solution to the problem.
However, the problem of personal income tax
generation and management manifest in one form or another. In virtually every
modern society, especially in the part of the world, it is very important to
point out that the government finds it very hard, if not impossible to
revolutionize the tax system. As stated by Emman Etal (1998),”the Federal
government of Nigeria lack the will and determination to revolutionizing the
tax system in general, and property tax in particular”. It is this failure on
the part on the Federal government that is responsible for the poor financial
position of the three tiers of government.
According to Paul Ernith(1987) “ with
inadequate planning and absolute laws governing taxation, evaluation and
collection is characterized by chaos. The chaotic nature of the system can be
appreciated by political interferences in the process of taxation during the
civilian administration in the country(Nigeria) which resulted in a situation
where untrained and inexperienced personnel’s are entrusted with job of
collection and management of personal income tax.”
The tax administration is faced with the
problems of inexperienced and insufficient staff. He then faces a public
comprising mostly of illiterates, who lack knowledge of taxation and record
keeping requirements which a developing country must inevitably demand of its
citizens. As a matter of fact, tax payers have deep – rooted suspicion arising
from lack of confidence in the government whereas it is said that “taxes are
the prices necessarily paid for civilized societies, as put down or stated by
STATEMENT OF THE PROBLEM
The problem of tax management collection,
assessment and administration is universal but seems to be more prominent in
the third worlds, including Nigeria for example.
This work is aimed at identifying the
problems associated with personal income tax management in Nigeria. Among the
problem identified is as stated below:
Inadequate training of available personnel.
Difficulty in identifying taxable adults.
Corrupt alliance with tax payer by tax collectors
Inadequate supply of equipment
Lack of trained personnel for the assessment, collection and
administration of personal income tax.
Ignorance on the part of tax payer and non disclosure of material facts
to the tax authority.
Problems of non – enforcement of penalties of defaulters.