The importance of tax to the overall development of Nigeria economic cannot be over emphasized. Because almost all the facet of our economy has witness a face lift, and it is a result of tax. According to Mcclinethy, (2000), said “tax is a financial charge or other levy imposed upon a tax payer can individual or legal entity by a state or the functional equivalent of a state such that failure to pay is punishable by law”. Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent.
According to black’s law dictionary, a tax is a “pecuniary burden laid upon individuals or property owners to support the government the payment enacted by legislative authority”. It is not a voluntary payment or donation, but an enforced contribution exacted pursuant to legislative authority and is any contribution imposed by government whether under the name of tool, tribute, tillage, gabal, impose, duty custom, excise, subsidy, aid, supply. Etc.
The legal definition and the economic definition of taxes differ in that economists do not consider many transfers to government to be taxes. For example, some transfers to the public sector are comparable to prices. They include tuition at public universities and fees for utilities provided by local government. Government also obtain resources by creating money(example, printing bills and minting coins)through voluntary gifts (example, contributions to public universities and Muslims) by imposing penalties (example, traffic fines)by borrowing and confiscating wealth. From economics view a tax is a non penal, yet compulsory transfer of resources from the private to the public sector levied on a basis of predetermined criteria and without reference to specific benefits received. In modern taxation system taxes are levied in money; but, in kind and corvee taxation are characteristic of traditional or pre capitalist state and their functional equivalents.
A tax incentive is an aspect of a country’s tax code designed to incentivize, or encourage a particular economic activity. Many tax incentive simple remove part of all the tax from whatever market transaction is taking place. This is because almost all taxes impose what economists call an excess burden or a dead weight loss. Dead weight loss is the difference between the amount of economic productivity that would occur absent the tax and thereof and lessening the burden, really removing a disincentive. To understand how removing a tax increases the level of market exchange by removing the excess burden, it is possible to make an analogy with the use of carrots and sticks.
Regardless of the fact that an incentive spurs economic activity and development, again, many use the term to refer to any relative change in taxation that changes economic behaviour. Tax incentive include tax holidays tax deductions or tax abatement. These tax incentives are targeted at both individuals and corporations.
1.1 Background of Board of Internal Revenue Service
The board of internal revenue service is a government agency vested with the responsibilities of treatment of federal income tax, imposing taxes and levies to individuals and legal corporate organizations for the purpose of development of the Nigeria economy. The agency has its branches in the 36 state of the federation FCT).
1.2 Statement of Problems
Over the year, it has been observed that the rate at which government at different level charge the citizens as well as the foreign investors are call for concern, but the rate or level of development witness by the citizens are gloomy .it is at this juncture the researcher seek to unveil the factors hinder the rate of economy development. The following factors will be empirically considered; in appropriate spending of tax incentives poor management practices toward these incentives ways on how to carryout effective and efficient tax incentives management so as to attend organizational goals.
1.3 Objectives of the Study
The objective of the study include the efficient
1 To ascertain the factors affecting effective and efficient tax management.
2 To examines how these factors can be control and reduced to enhance the economy development of Akwa Ibom state.
3 To offer meaningful suggestions and recommendation that will enhance proper tax incentive management in Akwa Ibom state.
4 To determine the role of board of internal revenue service in tax incentive.
1.4 Research Questions
The study will attempt to answer the following research question.
1 Are there factors affective and efficient?
2 Are there factors that can control tax incentive to enhance the economic development of Akwa Ibom State?
3 What are the recommendations and suggestions that will enhance proper tax incentive management in Akwa Ibom State?
4 What are the roles of board of internal revenue service tax?
1.5 Significance of the Study
A successful executive of these studies will be of great benefit to the board of internal revenue service thereby enhancing efficient management of tax incentives. The result of the research is expected to be of great assistance to students who wish to research on similar topic. The result will also target the in appropriate utilization of tax incentives in Akwa Ibom state. Finally, the result of the study will be useful to readers as well as researchers in the field of accounting.
1.6 Scope of the Study
The scope is centered on board of internal revenue service in Akwa Ibom State. The findings of this study will be properly investigated and reported in this research.