EVALUATING TAX ADMINISTRATION IN NIGERIA: PROBLEMS AND PROSPECTS (A CASE OF UYO AKWA IBOM STATE)
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Tax is a compulsory monetary contribution to the states’ revenue, assessed and imposed by a government on the activities, income, expenditure, occupation, privilege, property of individuals and organizations. The first need of a modern government is revenue which is a pivot and potent tool in encouraging its expenditure. When you pay tax, your contributions are invested in the community and benefit everyone. Akwa Ibom state government, the federal government has many ways of raising its revenue for the purpose of meeting its expenditure. Akwa Ibom state pay tax so that the government can provide important services to the community, including access to hospitals, welfare, allowances, schools, roads, national and parks. Ola (1985:8) enumerates various forms of taxes. These include personal income tax, capital gain tax, company income tax and petroleum profit tax. But one of the determinants factors in achieving the optimum revenue realization is the taxable capacity of a country which is embedded in the administrative competence of the tax collecting organs of the government. The prospect of tax administration ranges from increase in tax yield, new revenue opening, and buoyancy in government, which will enhance government ability to meet up with expenditure. However, this much needed prospects are not feasible because tax administration is plagued with many problems. As a result, tax administration in Akwa Ibom State in recent time has been criticized in many quarters. Okoruen (1997:15) also sees tax administrative machinery is stated as inadequate tax payers do not keep proper books of account of their business transaction.
EVALUATING TAX ADMINISTRATION IN NIGERIA: PROBLEMS AND PROSPECTS (A CASE OF UYO AKWA IBOM STATE)