PROBLEMS OF TAX COLLECTION IN NIGERIA: A CASE STUDY OF EKET LOCAL GOVERNMENT AREA
2.1 Conceptual Framework
Adebayo (a004) defined taxation is the legal demand made by the Federal Government or State government for its citizens to pay money on income goods
and services. In a less complex society in which the government has few duties and responsibilities, the financial need of the government are minimal.
However, as society becomes complex the need of the people becomes greater and the government assures greater responsibility the financial needs of the
government becomes great. Consequently, taxes increase and their eect
on the economy becomes more important.
In the past, government has utilized taxation as an instrument of regulating the general economy. Since income tax provide large source of national revenue.
Erect on inflation, unemployment and social and economy objective has become the prime consideration in enacting tax law in Nigeria.
Taxation in an aggregate definition is mandatory contribution from the people to generate revenue for the government; use in financial it’s capital project
and recurrent expenditure. A renown tax authority in his book “Principle of Public Finance” Dr. H. Dalton define tax as a compulsory contribution imposed by
a public authority, in respect of the exact amount of services rendered to the tax payer in return” according to Professor Seligman, a tax is compulsory
contribution from a person to the government to defray the expenses incurred in the common interest of all, without reference to special benefit conferred.
From the above concept, the following are therefore the global objective of taxation and avoidance.
i. To persecute the tax law very vigorously thereby deterring tax evasion and avoidance.
ii. To recognize the tax oicial’s
as important human asset in achievement of the said objective.
iii. To collect tax according to the law as means as possible and to the actively encouraging voluntary competence.
2.2 History of Taxation in Nigeria
Taxation is an age long concept which dates lack to the pre-colonial era in Nigeria. Taxes where paid through dierent
kinds of manual labour for the entire
community benefit. Some examples of such services are clearing of bushes, digging of pit toilet, well etc for the benefit of the community as a whole. Failure
to render such services usually resulted in seizing of property which will be claimed only on payment of money. For example, the best house at Isenyin, which
is inherited by Oyo State Government was said to have been built between 1916 and 1932 aer
the Isenyin riot of 1916, under the supervision of Captain W.
Rose, the resident district oicer
and Mr. Yerokun, the case taker.
In 1904, during the colonial rule, late Lord Lugards government introduces income tax to Nigeria and community tax was being paid in Sokoto caliphate,
northerner Nigerian. The Ordinance of 1917, 1918 and 1928 were later incorporated into the Direct Taxation Ordinance of No. 4 of 1940 which replace the native revenue Ordinance. During this period, the board of constituted, comprising of the following.