TAX AS A SOURCE OF REVENUE TO THE FEDERAL GOVERNMENT OF NIGERIA

Description

THIS RESEARCH WORK IS ON TAX AS A SOURCE OF REVENUE TO THE FEDERAL GOVERNMENT OF NIGERIA.

ABSTRACT

This term paper is to find out how tax is a source of revenue to the Federal government of Nigeria is being operated by the government. It is an attempt to highlight some of the major constraints in the process of assessment and collection of taxes which at times leads to how revenue realization.

The chapter one of this work will be dealing on the objective of study, importance of study, scope and limitations of the study, definition of terms. Further, in chapter two, there will be definition of tax, origin of tax, functions of tax.Finally, chapter three is a presentation of summary, conclusion and recommendation. The term paper when completed will help tax payers to understand the importance of tax.

CHAPTER ONE

INTRODUCTION

1.1       OBJECTIVE OF STUDY

This project work among other is aiming at:

A.           Improving on the techniques of assessment and collection of taxes in federal government level. This is because, if the techniques are improved. There will be more government revenue.

B.           Examining the rate and contribution of taxation in economic development of federal government of Nigeria.

C.           Enumerating the problems confronting assessment and collection of taxes in federal level.

D.           Offering useful suggestions on how to solve taxation problems.

E.           Suggesting the methods through which tax can be imposed to enable the citizens know the uses and the values of taxes they pay.

1.2       IMPORTANCE OF STUDY

The study of this term paper when completed will help tax payers to understand the essence of paying tax.

Income tax is one of the major sources of revenue of the federal government in question. The taxes collected come back to the tax payers in form of social amenities such: pipe-borne water, electricity, health centers, good roads, schools, building of market etc. all these are what they benefit from the tax they pay.

Also, income tax has so social effects to the tax payers such as, relief. The relief affect the social structure of whole tax payers in federal government. the relieves are personal relief, relief respect of children and tuition relief on insurance policy premiums and dependent relatives.

Government of the Nigeria spend the money collected from income tax which has been imposed on determinate objects or projects such as justice etc. Some of the revenue collected from taxes are usually distributed as part of the proceeds of income tax in the form of old-age pension for or in payment of sickness benefit to workman.

Taxation is very important to government, when governments tax, revenue increase through an increase in the height of income tax, than the presumption is that part of the increased revenue will be used to finance a large volume of services of the indivisible type and part will be used in the payment of money benefits to its dependents, so as to increase their consumption.

Tax revenue help federal government council to have great bulk of revenue needed for their development thereby remain independent of other minor source of revenue, by providing themselves those economic factors which are the responsibility of the individuals.

Some of the economic factors are;- Agriculture adult education, building of good road etc.

The study will be a large extent to serve as a document which future research studies can refer in carrying out their research and how to get about studying them.

Finally, it also tries to make recommendations of which when implemented may challenge, expose and most importantly encourage both sides.

1.4       DEFINITION OF TERMS

Many writers defined tax in different ways. According to Ducan block 1939. “Tax is the process by which a person hands over apportion of his income to the government on his own account.

J.M. Smith and K.F. Shovson defined it as a distribution of profit between the government unit and the owners of the business.