CHAPTER
ONE
1.0 INTRODUCTION
This
paper is written with the view to shed light on the taxation as a sources of
revenue generation in Asa Local Government and offers suggestion on how to
improve the source of the local government finance no matter how resources are
open to any government, it must be understood that wants can never be satisfied
base on their unlimitedness.
1.1 BACKGROUND TO THE STUDY
taxation
as a source of revenue generation with particular view of Asa Local Government
before now, it is fact that a lot of research has been carried out with regards
to the activities of the local government some many problems which are
connected with taxation and as a farm of revenue generation had been identified
and army recommendation have been offered in spite of this, this project
intends is it own small way to further identify the problem in Asa Local
Government and there offer suggestion as to the step to be taken to rectify
these problems and increase tax yield in this local government.
In
attempt to carry out this project work, this project briefly and explicitly
touches caries are of taxation. It is therefore divided into five chapter each
dealing with specific aspects of taxation and revenue generation either in
general or with a particular reference to the Asa Local Government.
Ackah
Nyamik E.E(1988) in his book stated that the success of any government, be it
federal, State, and Local depend extensively of the availability of financial
resource so fits disposals and the judicious use to which those resources are
made from the time immemorial, government imposes various forms of taxes, aimed
of raising enough to cover the cost of administration activities and defend.
Therefore is not unusual to some powerful kings to levy taxes on the inhabitant
of their area of administration frothier own purpose.
This
continue to exist until when later is was understood that certain services such
as maintain of law and order, defence against external aggressors, provision of
social amenities which could serve as a means of continuity to the communities,
who might be as the brink of collapse. In modern society therefore, it is the
duty of the government of any state to regulate certain activities of
individual of group that might prove hazardous or ingenious to the entire
effectively, there has to be a sound financial resources at the government
disposal the bulk of which could only be made a reality through taxation.
Eddy
C.N (1995) view that taxation is almost as old as the world it self. For
instance, in 1217, it was stated in magna certain Britain that no aid shall be
imposed in the Kingdom unless by the common council of the realm as early as
1799, income tax was introduced as a temporary measure to last for a period of
one years.
As
a new development project were increased, the government need to increase
current expenditure to (0100.01982;305-306) administer them as in the cases of
hospital, school road, maintenance among others. These for in Nigeria, every
high percentage of government revenue, comes from duties on import, exports,
post, tax e.t.c. taxation therefore, is not only an influence on the economy of
the country but also on important instrument of economic policies.
At
the level of local government have tremendous functions to performs in order to
execute these functions effectively, they must be able to raise necessary
finance and set their priorities in a way that will match their purpose to
existences.
The financial resources available to the local
government should be determined the function and responsibilities it has to
meet both of which most totality with the purpose and individual structure of
particular local government area.
In
order to enhance the development role the government they were expected to
prepare and execute their development programmes as a means of strengthening
the ability of the local government to perform their functions, on taxation was
introduced to local level by (1976), poll tax has been the only uniform types
of tax in the whole country’s. This sources of revenue generation was one of
the reliable and independent sources to the council by statutory allocation
tool over the provision of resources based of the local government council in
the country.
Resources
from poll tax started to reduce with the introduction to this statutory
allocation and as a result emphasis were laid on the introduction of rates
changes fees e.t.c compensate the devilling revenue from a poll tax, today,
property tax has been found to the most reliable and widest source of revenue
accruing to the local government to provide of the necessary services to the
people at the grass root.
1.2 SCOPE AND LIMITATION OF THE STUDY
The
scope and limitation of the study will be focused of taxation only, as a form
of revenue generation in Asa Local Government any others local government is
not my focus except Asa Local Government only.
1.3 AIMS AND OBJECTIVES OF THE STUDY
No
organization can boast of it existence if it can’t fulfilled the purpose for
which is being set up for. In fact no purpose can be achieved if there are no
means (resources) of their disposals to finance the project. Hence this paper
aims at addressing it self to taxation as a form of revenue generation in Asa
Local Government to achieve the purpose of its existence.
This
generation base on this study therefore is to collect data on taxation analysis
these data and provides an insights to the generation attitude of the people of
the local government towards the course of tax collection. The use of this
taxes is the area of well as offering recommendations how these problems will
be over come.
i To know the problem or constrain tax
collector encounter in Asa Local Government.
ii To
provide solution to the problems
iii To know the historical background of Asa
Local Government Area.
1.4 SIGNIFICANCE OF THE STUDY
There
are three tiers of government in Nigeria, Federal, State and Local level of
these three the local government are less funded and are finding it difficult
to fulfilled their financial obligation so the main sources of generation
founds and maintain the local government resources the funds are generation
through tax collections from district or ward in the local government so the
tax collection help to improved function of the local government in Nigeria.
1.5 DEFINITION OF TERMS USED
In
taxation may definitions and terms are used they are as follows:
a. Assessment:
This is the act of fixing the value of property, the amount of income for the
purpose of taxation.
b. Income:
This is a return in monetary term received during a given period of time either
on salary or receipt from traders or interest from investment. Spicer and
Pegilers (1970)
c. Tax
Authority: This is a groups of person or a person empowered by law of a
state to impose various types of taxes as the resident of the state for
effectiveness of administration.
d. Tax
Avoidance: This is a method by which a tax payers reduced his tax liability
by a lawful means, this lawfulness arise as a result of geneuness and approval
of tax reliefs given by a tax authority to the tax payers with a given period.
e. Tax
Base: This is the objective upon which tax is paid this may include salary
of an employees a profit of a business profession or vacation property of a
person or company or interest on investment.
f. Tax
Exertion: This is a illegal act of not declaring all or part of a person or
business income to the authority for tax assessment purpose. It is an omission
or understatement of ones tax liability.
1.7 ORGANIZATION OF THE STUDY
For
better understanding of this work, the project is divided into five chapters.
Chapter
One: This is an
introductory chapter in which the origin and meaning of taxation is given it
also deals with the aims of the writer in choosing this topic. It also explain
the method adopted in gathering information as well as defining some common
terms used in taxation
Chapter
Two: This chapter gives the literature review of
the topic taxation and revenue generation. It examines the generate principle
of taxation in Nigeria.
Chapter
Three: This chapter deals with the research
methodology
Chapter
Four: This chapter tries to
examine the problems which were confronting or militating against the success
of taxation in Asa Local government Area wither as a result of attitude of some
people, machinery for its collection technical knowledge on the revenue
generation.
Chapter
Five: In spite of these
problems affecting taxation in this local government. It is never without a
prospect this chapter therefore discussed this prospect in relation to property
rate, motor park fees all well as development and taxes.
REFERENCES
Ackah Nyamik E.E (1988)
Principle of public finance ilorin: Sadiq printer
Eddy C.N (1988) Tax
structure and administration in Nigeria
Eddy CN (1998) Public
Finance in Nigeria ILorin, Sadiq Printer
Spicer and Pegilers
(1970) Income Tax Relation to Account Ancy London: sir issac pitman and sons
limited