CHAPTER ONE
1.1Background To The
Study
The collection of Tax and other
income constitute the fundamental source of revenue to government. According to
(Olaoye, 2008), Tax constitutes a mandatory levy imposed by government on firms
and individuals to facilitate the generation of revenue for the execution of
government plans and programs. Therefore, successive government has formulated
policies towards enhancing the collection of tax. And other revenue of government
one of which is the Treasury Single Account TSA that was recently instituted by
the federal government. The measure requires all revenue – generating agencies
of government to close their accounts with commercial banks and remit all
generated revenues into the Treasury single account of government. The
implementation of Treasury Single Account is for the e-collection of Government
revenues of all agencies, department and Federal Ministries to facilitate
transparency and accountability in compliance with section 80 and 162 of the
constitution of the Federal Republic of Nigeria 1999 (as amended) which
stipulate that, all revenue of the Federal Government or any of her agencies
shall be paid into a single account for proper monitoring. It should be noted
that prior to the development of the single treasury account, all agencies,
departments and federal ministries operated several individual accounts and remitted
revenues to the federation account as well which were not properly accounted
for leading to severe shortfalls of the federation account. The shortfalls were
as a result of leakages of funds, fraud and corruption in the public service.
Consequently, the preparation of the Budgets was based on false projection
leading to poor implementation. TSA therefore was to constitute as a” unified
structure of bank accounts of the government which provides a consolidated
account of government cash resources. The TSA is a set of linked accounts belonging
to the federal government through which all its receipts and payments are
transacted. According to Adeolum, (2015) The implementation of the Treasury
Single Account will facilitate proper
cash management, eradicate leakages which occur through multiple accounts of
government with the commercial bank and provide accountability and transparency
in government receipt and expenditure. It is believed that TSA shall facilitate
the revenue generating capacity of the federal government through internally generated
revenue of tax revenue in Nigeria. Thereby facilitating accountability
and transparency. The research therefore seeks to proffer an Appraisal of the contributions of
TSA in boasting tax revenue in Nigeria
1.2 Statement of the
Problem
Nigeria has come under serious
challenge of the prevalence of corruption where public funds and resources are
being diverted for personal gains or misused and the apparent lack of
accountability and transparency in public service. This has led to looting of
public funds thereby rendering government treasury empty. Therefore the
apparent need to boost government revenue and enhance accountability and transparency
in government precipitate the need for the Treasury Single Account. The collection
of Tax and other income constitute the fundamental source of revenue to
government. According to (Olaoye, 2008), Tax constitutes a mandatory
levy imposed by government on firms and
individuals to facilitate the generation of revenue for the
execution of government plans and programs. Therefore, successive government
has formulated policies towards enhancing the collection of tax. And other
revenue of government one of which is the Treasury Single Account TSA that was
recently instituted by the federal government. The measure requires all revenue
– generating agencies of government to close their accounts with commercial
banks and remit all generated revenues into the Treasury single account of
government.
TSA therefore was to constitute
as a” unified structure of bank accounts of the government which provides a
consolidated account of government cash resources. The TSA is a set of linked
accounts belonging to the federal government through which all its receipts and
payments are transacted. According to Adeolum, (2015) The implementation of the
Treasury Single Account will facilitate
proper cash management, eradicate leakages which occur through multiple
accounts of government with the commercial bank and provide accountability and
transparency in government receipt and expenditure. It is believed that TSA
shall facilitate the revenue generating capacity of the federal government
through internally generated revenue of
tax revenue in Nigeria. Thereby facilitating accountability and
transparency. Therefore, the problem confronting the research is to proffer an Appraisal of the contributions
of TSA in boasting tax revenue in Nigeria.
1.3Objectives of the
Study
1.
To
describe the contributions of treasury single account on
boosting tax revenue.
2.
To assess the process involved in the
implementation of treasury single account.
3.
To establish the disadvantages of
treasury single account on tax revenue management.
1.4Research
Questions
1. What are the contributions of
treasury single account on boosting tax revenue?
2. What is the process involved in
the implementation of treasury single account?
3. What are the disadvantages of
treasury single account on tax revenue management?
1.5Significance of
the Study
i.
To
proffer the role and impact of TSA in revenue elevating the revenue of
government in Nigeria.
ii.
To
provide sufficient information on TSA in boosting revenue in Nigeria.
1.6Research
Hypothesis
Ho: The contribution of TSA in
boasting tax revenue in Nigeria is low
Hi: The contribution of TSA in
boasting tax revenue in Nigeria is high
1.7Scope of the
Study
The study focuses on the Appraisal
of the contributions of TSA in boasting tax revenue in Nigeria.
1.8Limitations of
the Study
Some of the constraint
confronted in the research included logistics and geographical factor.