PROBLEMS OF INCOME TAX ASSESSMENT AND COLLECTION IN ENUGU STATE
With the present economic predicaments in the country, most people found it very difficult to cope with the high cost of living. This is true, because, the government is not generating enough revenue as expected and such things affect the budget of the year. If all means that the government may not have enough money to provide social amenities, for the individuals.Therefore, the government, individuals depend on revenue for the execution of their projects. The need may be defense, education, transport, agriculture or provision of shelter for their citizens. How far, therefore, government can go in solving such problems are a function of their revenue.In writing this topic, I decided to include the problems of people in the payment of taxes or what makes them to dodge the payment of taxes.However, among other chapters, chapter three deals specifically on the findings, summary and recommendations.
BACKGROUND OF THE STUDY
Income Tax was first introduced in Nigeria in the year 1904 by the late Lugard when community tax became operative in Northern Nigeria. Previously, Nigerians cheerfully paid their taxes in kind by rendering free services such as clearing the brush, digging pit toilets etc for the benefit of the community, as a whole. Failure to render such services usually resulted in size sure of property which management reclaimed on payment of money. In 1917, lord Lugard made certain changes, which culminated in the native revenue ordinance. It was the 1917 ordinance that was extended to the Eastern part of Nigeria in 1928.
Prior to 1st April 1956, the direct taxation ordinance was applied to the Eastern Nigeria (Anambra State) Nigeria. Under this ordinance, Native Authorities (later local government councils) assessed and collected income tax from Africans resident within their areas of jurisdiction. With the Nigeria constitution order in council, 1954 power was given to each region to tax on a regional level, all Africans resident within the region or deriving income there from. Eastern region acted on this power, by repealing the direct taxation ordinance and introducing the finance law, 1956, which became effective from 1st April 1956. This law brought PAYE (Pay as you earn) system of tax collection into operation.