Nigeria were present, as well as practitioners from the revenue authorities of. It also aimed at identifying problems that inhibit the efficient and effective administration of the nigeria tax s system. The difficulties and prospects of tax administration in nigeria a case study of the abia state board of internal revenue. One fundamental problem faced in the literature on taxation and entrepreneurship is in defining entrepreneurship. Challenges with taxation system in nigeria the nigerian. Nigeria tax system has different problems, but government needs to make better effort to ensure effective collection of revenue through taxation. What are the challenges facing the tax administration, including compliance issues in lagos state and nigeria. Obviously, everything about the nigerian taxation cannot be covered in this article, so try to click the links provided on certain text to get a wider scope and explanation. Bird, tax policy and economic development baltimore. The first of these challenges is non availability of tax statistics. Get free research paper on a study into the challenges of personal income taxation in ghana project topics and materials in nigeria. Such authorities are the joint tax board, which is the apex unifying body for all tax authorities in nigeria. Taxation in nigeria understanding nigerian tax system. The administration of tax in nigeria is vested in the various tax authorities depending on the type of tax under consideration.
This is approved for students in accountancy, business, computer science, economics, engineering, arts. Tax evasion and tax avoidance, a problem which seems to have defied solution, had. In trying to judge to what degree the tax system may. The study examines the effect of tax avoidance and tax evasion on personal income tax administration in nigeria. Tax challenges, for both administration and policy, but with some emphasis on the latter, are addressed in the contexts of restoring fiscal sustainability, developing countries, the extractive industries eis and avoidance by multinational enterprisesincluding transfer pricing and other. The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. However the level at which the company income tax administration in nigeria tend to achieve its desired goals and objectives depends mostly on the tax. Pdf the article is about problems and opportunities of tax administration in gombe state, nigeria find, read and cite all the research you need on researchgate. The major problems being sought out in this study include, tax authorities in lagos state internal revenue service and nigeria at large lack the desired institutional capacity to administer tax system effectively. Corruption is a major problem in developing administration in nigeria. The tax system in nigeria is made up of the tax policy, the tax laws and the tax administration.
Policy implementation and its challenges in nigeria effiong, a. Difficulties and prospects of tax administration in nigeria. Revenue realized from income tax is lo w because of the low level of literacy. Prospects and problems of tax administration in nigeria.
In the past, government has utilized taxation as an instrument of regulating the general economy. Only a small fraction of firms generates nontrivial effects on economic growth through the development of new products, new technologies, or new internal forms of organization. Policy implementation and its challenges in nigeria. Tax system in nigeria challenges and the way forward. All of these are expected to work together in order to achieve the economic goal of the nation.
Impact of tax administration on government revenue in a. The federal board of inland revenue is responsible for administration and collection of taxes on behalf of the federal government of nigeria. To identify the problem associated with the tax laws and proposes amendments for same. To examine the problems associated with tax administration in nigeria. The other challenge is lack of strong public institutions to deliver services to its citizens. Since income tax provide large source of national revenue. The ttest was used to establish sufficient evidence that the. Pre 2002 tax reform efforts the federal government had taken farreaching steps aimed at reforming the nations tax system before the pre 2002 reform efforts.
Three research questions were formulated for the study. Tax policy, tax legislation and tax administration. The tax structure of any economy tends to vary substantially according to the level of development reflecting the availability of tax bases and. Tax policy forms the basis for tax laws while tax administration is the implementation of the tax laws. Pdf income tax noncompliance is a huge problem in nigeria making the country one of the lowest income tax countries in the world based on percentage. The assessment and collection of companies income tax as at when due has been a problem associated with company income tax administration in nigeria. The study examines the administration of companies income tax in nigeria.
The problem of withholding tax in nigeria is the poor administration that leaves a loop hole in the system. Tax administration in nigeria is as old as the country itself. This study examined the burning issues in the nigeria tax system, tax reforms, and how they affect revenue generation in river state, nigeria. There should be appropriate funds set aside out of tax collected to cater for tax refunds both at the federal and state levels and tax authorities should be more. This is one of the challenges affecting the successful. Tax is a mandatory financial charge that every taxpayer be it a working individual or a company has to pay. A survey of vatable nigerian organizations, firs staff and the publics was conducted to gain insights into. Despite policy reforms, the challenges of tax revenue generation persisted and this led. Pdf the article is about problems and opportunities of tax administration in gombe state, nigeria find, read and cite all the research you. The tax revenue collection in nigeria faces some formidable problems which includes the high tax rates and complex filing procedures, multiple taxation and lack of proper enlightenment, lack of statistical data, poor tax administration, and inability to prioritize tax effort, multiplicity of taxes and increase in underground economy. To examine the prospects of tax administration in nigeria.
A study into the challenges of personal income taxation in. The study found among other things that increasing tax revenue is a function. In nigeria the company income tax administration aims and tries to tax each company in the state more effectively. The chapter one of this work is going to discuss in brief, the introduction, statement of the problem, purpose of the study, significance of the study, scope of the study, limitations of the study, assumptions of the study. The nigerian tax system has undergone significant changes in recent times. These problem through observation has been influenced by the following understated factors.
Pdf issues and challenges inherent in the nigerian tax system. Data were generated through primary sources and the use of multiple regression analysis was employed. Although there are specific provisions in the tax laws, especially under the firs establishment act 2007 for tax refunds, these provisions are yet to be fully functional. In nigeria, the organisation that deals with tax administration and collection is the federal inland revenue service, often regarded as firs. Other important role of tax administration in nigeria as a country other than the funding of government expenditure is that it provides basic information about the total price for projects to be carried out by the government. Taxation, particularly income tax, is an indispensable source of government revenue. This study analyses the relevance and the problems of value added tax vat in nigeria. Bulk of taxes today is paid by only the employees and less privileged individual in the state. According to the presidential committee on national tax policy 2008, the central objective of the nigerian tax system is to contribute to the. In the light of this reality and the general realisation that it would be foolhardy if nigeria continues to solely depend on oil revenues whilst neglecting other nonoil sources, adapting the tax administrative. In nigeria, one of the main objectives for the introduction of the local government administration, as the third tier of government, is to ensure adequate provision of municipal infrastructure. The problems of nigeria personal income tax administration includes abstract and chapter one, complete project material available the problems of nigeria personal income tax administration a case study of ministry of educationabstract this project work is carried out on problem of personal income tax generation and administration taxation can be.
Sometimes the purchaser ends up deducting withholding tax from payment invoice of multiple suppliers but fail to remit it to the relevant tax authority. Following from the above, the tax policy shall also. Do the existing strategies for tax collection have. Taxation patterns throughout history are largely explained by administrative consideration. The tax administration collection and assessment of tax from companies is a difficult task. Intergovernmental tax relations tax administration and procedure. This paper examines the factors that affect tax administration in nigeria. The nigerian tax administration faces seri ous, complex and multidimensional problem s. Challenges of local government administration in nigeria. Section 1 1 of cita vested the administration of the taxation of profit of incorporated companies to firs which is the operational arm of fbir.
A sample size of 80 respondents, determined by the yaro yamens formula, was selected. Burning issues in the nigeria tax system and tax reforms. Nigeria tax system is confronted with many issues and challenges such as multiplicity of taxes, bad administration, nonavailability of database. The tax legislation has been constantly amended and modified. This paper attempts to look at the nigeria tax administration and its capacity to.
566 1516 957 931 349 656 570 341 628 1126 760 332 1225 1505 522 1197 1148 1037 1324 292 1220 745 1524 256 302 1080 563 650 194 504 839 336 313 850 339 1111 70 435 1370 360 103 1148