PROBLEMS OF ASSESSMENT AND COLLECTION OF PERSONAL INCOME TAX IN NIGERIA (A CASE STUDY OF BOARD OF INTERNAL REVENUE DELTA STATE)

Thesis Overview

<p> <strong></strong></p><p><strong><strong>1.0 INTRODUCTION</strong></strong></p><p><strong><strong>1.1 BACKGROUND<br>OF STUDY</strong></strong></p><p><strong>Government<br>of a State needs money to secure its tertiary and to provide social services<br>such as maintenance of law and order, security, lives and properly of its<br>citizens. This is becomes compulsory that every subject of a State must given<br>financial support to the Government as nearly as possible in proportion to their<br>income. That is, in proportion to the revenue which they respectively enjoy<br>under the protection of the state<br>(Smith, 1904:310).</strong></p><p><strong>&nbsp; &nbsp; Therefore, tax is a compulsory levy imposed<br>by Government against the income, profit, or wealth, of the individual partnership<br>and corporate organizations</strong></p><p><strong>&nbsp; Tabanisis Ochigu (1994:1) stated that “in<br>Nigeria tax is levied on the authority of the Federal Government, income tax<br>Government Act 1961 (FAMA) and subsequently amendments including the finance<br>(Miscellaneous Taxation Provisions) Decree 1992 and the (Finance Miscellaneous<br>provision) Decree 1993.</strong></p><p><strong>&nbsp; These laws are not static as they are changed<br>almost each year during the budget speech. The direction is determined by what<br>the Government wants to achieve.</strong></p><p><strong>However, the yield from personal income Tax (PIT) has been less than the expect or budget. This poor yield has found to be as a result of personal income tax. This has adversely affected the yearly income of Government, since taxation is one of the major source of Government revenue</strong></p><p><strong>&nbsp;Personal income tax was introduced in 1799, as<br>a means of paying for the war against the French forces under napoleon. The<br>cost of persecuting the war had drained Britains resources and run up a<br>considerable national debt. The army was starving, and poor conditions in the<br>Navy in 1797 had led to muting so tax was introduced as an “aid and<br>contribution for the prosecution of the war”. Taxation had to continue amidst<br>protests from people. Even lady Goliva Roda naked through the streets of currently<br>in the century to persuade her husband to reduce it.</strong></p><p><strong>In<br>the year 1979 where a tax clearance certificate issued to late Dr.Nnamdi<br>Azikiweb was contested assessment as and when due. The court ruled that in<br>accordance with the faster region finance low 1958, Azikiwe objected to the tax<br>and made part payment of up to 50% of amount due accordingly and waited for his<br>objection to be resolved thereafter and therefore was deemed to have paid his<br>tax as when due.</strong></p><p><strong>&nbsp;In the Northern Region, such part payment would not have sufficed, because in the personal income tax 1962 of the North full payment of tax most be made irrespective of pending objections tax legislation throughout the country.</strong></p><p><strong>&nbsp; In Delta State, this is the case study in one<br>the thirty-six (36) States in Nigeria which is located in South- South region.<br>The state capital is Asaba in Aniocha Oshimiri Federal Constituency. It is made<br>up of twenty- seven (27) local Government Area. Its state Board of internal<br>Revenue is located at NO. 42 Ezenei Street Asaba the board comprises of :</strong></p><ul><li><strong>Executive Head of State services as<br>chairman, appointed by the state Governor.</strong></li><li><strong>Three other persons nominated by the<br>commissioner for finance in the state on their personal merits.</strong></li><li><strong>&nbsp;The<br>Directors and Head of Department within the state service.</strong></li><li><strong>The Secretary is appointed by the board<br>from within the state service. The legal adviser is a member of the state board<br>and represents the board in his professional capacity in any proceeding in<br>which the state board is a party. The Quorum is five members of which one must<br>be the chairman of a director.</strong></li></ul><p><strong>On the basis of the problem surrounding the and collection of personal income tax, that this project is based in order to guest for and finding solution to them.</strong></p> <br><p></p>