CHAPTER ONE
1.1 INTRODUCTION
It is
generally believed that taxation if the main sources of government revenue. The
money realized from the tax is for the benefit of all and people must attain
certain age before they can start the payment of tax.
We
can view tax as a compulsory payment or levy imposed on individual and firm by
the government. It’s also made by the government on the citizen, non diplomatic
residents and property owners within the country irrespective of the exact
amount of services rendered to the tax payer in return. This chapter discusses
tax revenue in
as well as the purpose of tax revenue.
There
are also property tax, i.e the tenement rather than on legal documents.
The
world “Income” does not have a specific meaning of definition. Economist define
income as the sum total of earning of a government consumption – unit that can
be separate during particular period and still have same net asset value in
money terms at the end of the period as at the beginning of the period.
Income
from the factors of production i.e land, labour and capital can be categorized as
follow for income tax purpose.
The
land receiver rent, labour receives wages and salaries while capital receive
interest and entrepreneur receive dividends.
The
administration of income tax which is the topic of the project is on how the
government administer the various types of taxes applicable to
are company income tax, capital gain tax, petroleum profit and purchase tax.
There
are various types of taxes. These are import and excise duties tax (this levied
on goods important and export repectively).
Exercise
duties levied on goods produced within the country. Consumption tax (this is
levied on consumers of goods and services).
1.2 STATEMENT OF THE PROBLEM
The
main problem to be addressed during the research work includes.
What
is the utilization of the income tax?
What
is the aims of government in generating income and tax administration in a
country?
How
does administration of income tax services as (means) for the government?
How
is government able to generate income in ?
In
what ways does income and tax helps the country e.g .
AIMS AND OBJECTIVES OF THE STUDY
The
aims and objectives behind the study of income tax administration in with particular
reference to
board of Internal
revenue.
Firstly,
form the following the role played by the tax collectors and tax payers in an
economy and also to know the role played by the inspector of taxes in the
collection of various taxes.
Secondly
to find out whether the adequate number of complete absence of qualified
accountant in the staff of the tax authorities. Inadequate book keeping by the
tax payer, legal tax allowance, illegal tax erosion. Illiteracy poor income tax
authorities are responsible for the revenue realization from income tax.
Thirdly
to let people know the important of income tax administration and its
contribution to the economy of
.
Lastly
to assist low tax payers and tax authorities have contributed to economy
growth.
1.4 SIGNIFICANCE OF THE STUDY
It is
hope that the study with provide variable information on the function and
operation for the benefit of the state. The study is therefore significance to
the studies in the subject of income tax administration in because
if further helps in shading light and some relevant concepts. Methods of income
tax would provide means of making amendment where necessary for efficiency and
effectiveness in the country. Tax helps the government to generate revenue for
the utilization of the state or country.
1.5 SCOPE AND LIMITATION OF THE
STUDY
This
project is designed to research on income tax administration, in Kwara State
with particular reference to board of Internal revenue and to find out how much
revenue collected is been of utilized.
Whether
government of Kwara State is able to meet is target allowant and to survey and
analysis as much as possible the system of revenue collection and enforcement
procedure order the income tax management Act (ITMA) 1961 and the relevant
Kwara State Law. And attempt has being made analysis the conservation both
internal and external, it is intended also after which analysers to attempt to
evaluate the effectiveness of the collection and enforcement procedure in Kwara
State.
The
Scope of the Study has also included how the Kwara State Government administrative
various types of income tax based on individual, company and partnership, the
view reactions of various payer and problem associated with the tax
collections.
However,
this project should be considered from one prospective only, being academic and
making founding based on the responses of the respondents.
The
limitation to this study is that, in undertaking a research work in any field
human endeavour one is usually failed with some constraint which this research
work is not on exception, some of the obstacles are secret that is some
information were branded “TOP SECRET” which means it is not mean for outsider
consumption. Another problem encountered in the process of the research is the
insufficient time giving for the writing and submission.
Financial
the research is another due to the fact that there was no enough financial
research work cannot be intensified. However the objectivity of the analsis in
the research work helps to compensate for the constraints enumerate above.
1.6 DEFINTION OF TERMS
Income:-
can be defined as money received during a certain period for work of
enforcements, the income or output of a country always refers to the value of
output during a specific or definite [period says one year calendar.
TAX: Can be
defined as a compulsory payment imposed on people living in an area environment
or a country by the government in order to provide necessary things e.g goods
road, hospitality, good electricity standard education etc.
ADMINISTRATION: This can be defined as the organizational running of a business or
system. The action of giving out or applying order of the government in power.
LAND: Law as factor of production is a free gift if nature and is fixed. It
is the oldest factor of production in the sense that, it had been on earth
before man started working on it. Land does not include only the hard surface
of the earth, but all other free gifts of nature like water, forest and
minerals unlike other factors of productions, the supply of land is limited and
its reward is rent.
CAPITAL: May be view as wealth research or
set aside for the production of more wealth as man made other factors of
production includes physical cash, machinery, semi-finished goods and order
equipment. Just like other factors of production, capital plays a crucial role
in production of goods and services and its reward is interest.
LABOUR: May be defined as both physical and mental efforts of man directed
toward production.
It is
one of the variable factors of production. Labour as a factor of production
involves human being who work on other factors of production like land and
capital in order to produce goods. The reward for labour are salaries and
wages.