THE EFFECTS OF TAX ADMINISTRATION ON REVENUE GENERATION IN ENUGU STATE. (A STUDY OF THE STATE BOARD OF INTERNAL REVENUE ENUGU STATE)

 CHAPTER ONE

INTRODUCTION

1.1 Background to the Study 

In virtually every society, and particularly in this part of the world, the problems of personal income taxation and administration continue to emerge in one way or another. It must be noted that appropriate steps have been taken in efficient tax administration by the federal government (Adeyemi, 2012). The federal government's failure to achieve this is responsible for poor state and local government financial positions. Moreover, confusion is defined by the insufficient planning and absolute laws regulating taxes, assessment and collection. This chaotic nature of the system can be recognized by government-interference or impairments of the taxation framework in the nation throughout civil administration which resulted in the work of collecting and managing personal income tax by untrained and inexperienced staff (Afuberoh & Okoye, 2014)

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In emerging nations such as Nigeria, the relevance of these problems to tax administration can be seen from the following excerpt from tax administration in industrialized nations. The tax administration finds itself dealing with an experienced and poorly paying workforce that is inefficient. Every government has a big challenge to collect tax revenues and effectively run their administration. The tax system and its implementation are made stable and efficient by measures (Enahoro & Olabisi, 2012). The system is also enforced. Gurama & Mansor (2015) say the value of tax cannot be stressed for the growth of a modern economy in any free society or region. The then local chiefs and emirs collected tax long before the arrival of colonial leaders for the resolution of their protectorate security and administration, and the collection or collection of the taxes was still performed in the State of Enugu. People are compelled to respect the development of agricultural land and other economic activities in the State at the expense of the nation as a whole through the surrender of part of their revenue from animal rearing (Gurama & Mansor 2015). As an assessment, collection and transfer mechanism, tax administration is a effective mechanism that increases revenue in the State to achieve economic goals. The State's economic objectives can be accomplished only when the tax system and management strategies are outstanding. In virtually all countries of the world, taxes are levied mainly for the purpose of growing government income even though they have another purpose. In today's economies, taxes are the primary sources of government earnings and are not received or charged in return for any peculiar advantages by the general duty of payers of tax (Enahoro & Olabisi, 2012).

1.2 Statement of the Problem 

Whilst the question of raising taxes and administering them is a universal one, Nigeria, one of the third-world countries, seems to be troubled and afflicted more than the developed nations of the world. The research involves mainly examining the challenges of the generation and administration of personal revenue taxes in Nigeria through a case study of the Internal Revenue Board of the State of Enugu. This research has the following specific problems:

• Improper accounting and record keeping structure in the internal Revenue Department that was seen to be very mechanical and obsolete.

• Fewer personnel and insufficient preparation of the tax collectors eligible.

• Another tax generation and management issue in Enugu is no enlightenment by tax-payers about the value of taxation.

• In Enugu State, tax collection and management is not effective and efficient.

• Corrupt tax collectors' alliance even with tax payers to keep them (tax collectors) from earning fast cash.

• This makes tax laws useless and unimportant for tax offending / defaultors, because the board lacks enforcement authority.

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