AN
EVALUATION OF THE PROBLEM AND PROSPECT OF TAX COLLECTION IN INTERNAL REVENUE
SERVICE IN BAUCHI STATE
ABSTRACT
The research profers
an appraisal of the problem and prospect of tax collection in internal
revenue service of bauchi state. It
analyses the concept of tax and its significance and elucidate the problem
encountered in the process of tax collection.The research profers the prospect
in tax collection and administration,while investigating tax administration in
bauchi state as a case analysis.
INTRODUCTION
Tax is invariably
an enforced contribution of money ,exacted pursuant to legislative authority if
there is no valid statute by which it is imposed, a charge is not a tax.The
classical purpose of taxation is the raising of funds to meet government
expenditure.redistribution of wealth and the management of the economy.The tax
system can also be used to direct the course of the economy.It is often to
encourage economic activities .Tax
affects the amount available for spending by the private sector of the
economy.correspondingly, an increase in
tax rate and gathering efficiency will affect the amount available for
government spending.Not only that such increase or decrease no matter how
minimal may have inflationary or deflationary effect on the economy.secondly
and particularly in the case of taxes on income, there is tendency of their
imposition to encourage or discourage particular activities.
1.1
BACKGROUND OF THE STUDY
The
significance of tax to the government and the state can not be over
emphasized.However achieving a high
level of revenue through tax is not always an easy fit to attain.Problems
encountered includes inadequate staff, bribery and corruption, mismanagement of
tax collected, poor accounting record, etc.But
according to Adam Smith (1968), there are prospect the lies with the
collection of tax.The research intends to investigate the problem and prospect of tax collection in
internal revenue service in bauchi state.
1.2
STATEMENT OF THE PROBLEM
The
problem confronting this research is to evaluate the problem and prospect of tax collection in
internal revenue service of bauchi state.
1.3 RESEARCH
QUESTION
1 What is the nature of taxation
2
What constitute the problems
encountered in the collection of tax
3
What are the prospect of tax
collection
4
What are the problems and
prospect of tax collection in bauchi state
1.4 OBJECTIVE OF THE RESEARCH
1 To determine the nature of taxation
1
To appraise the problems and prospect of tax collection
2
To determine the problems and
prospect of tax collection in bauchi
1.5 SIGNIFICANCE OF THE RESEARCH
The research
shall elucidate the problems and prospect of tax collection and profer possible
recommendations for effective tax administration.
1.6 STATEMENT OF THE HYPOTHESIS
1 Ho Tax revenue in bauchi is low
Hi
Tax revenue in bauchiis high
2 Ho
Problem of tax collection in bauchi
is low
Hi
Problem of tax collection in bauchi
is high
3 Ho
The prospect of tax collection in bauchi is low
HI
The prospect of tax collection in bauchi is high
1.7 SCOPE OF THE STUDY
The study intends
to appraise the problems and prospect of tax collection in bauchi state.
1.8 DEFINITION OF TERMS
TAX
DEFINED
Tax is invariably
an enforced contribution of money ,exacted pursuant to legislative authority if
there is no valid statute by which it is imposed, a charge is not a tax.The
classical purpose of taxation is the raising of funds to meet government
expenditure.redistribution of wealth and the management of the economy.The tax
system can also be used to direct the course of the economy.
PERSONAL INCOME
TAX DEFINED
This is tax
levied on income of individuals which is
earned either from employment ,trade, business, vacation or profession.