THE EFFECTIVE TAXATION IN LOCAL GOVERNMENT A CASE STUDY OF UGWUOGO NIKE COMMUNITY

CHAPTER ONE

BACKGROUND OF THE STUDY

Taxation referees to a compulsory transfer payment of money from private individuals, institutions or groups of the Government . Tax is levied on the basis of predetermined criteria and without receipt of a specific benefit of equal value (i.e it is not done not build a school or a hospital personally for you because you have paid your taxes. Tax may be levied upon wealth, income, profit and or in the form of a surcharge on princes. The origin of taxation date back to the reign of Caesar, when Jesus Christ was asked if it is right to pay taxes to Caesar, he simply said that what is due to Caesar should be given to Caesar implying that the act of imposing taxes on the citizenry is justified. Mathew chapter 22 verse 15 to verses 22.. Taxes are different  from hospital bill etc. which though social service but citizens have to support the continuity of such organization that offer them by paying a taken fee.

STATEMENT OF PROBLEM

The major problems that has been militating against the realization of suicient revenue through taxation in Enugu East local government  are 1. Tax Evasion and Avoidance: This problem is perpetuated due to non- availability of accurate data of the taxable adults. 2. Another problem is communication gap between the tax authority and the tax payers: most if not all do not know how much they are supposed to pay as tax  within a given year. 3. Also the tax  laws are written technical words and are complex for the comprehension of the “ common man” in the suburb. 4. Ignorance of the implication of non-payment of tax liability lies or tax avoidance are prevalent in Enugu East local Government area. Hence this research