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Abstract

This study was set to determine the impact of good tax management on revenue generation in Anambra State, using Orumba south Local Government Area as the area of study. The study was necessitated by the increasing financial burden on the government at levels occasioned by the surging need to provide social services and infrastructural development for the governed. To accomplish the objective of the study, the researcher has reviewed the opinions of established authorities on the subject matter of study. Well- structured questionnaires were used to elicit information from respondents forming the sample of study.  Data were collected using questionnaire and were analyzed using frequency tables and percentages.

The analysis result revealed that;

1. The tax system is designed and formulated to facilitate generation of revenue.
2. The tax system is planned to prevent evasion and avoidance of tax by citizens.
3. In spite of the high demand for social services and infrastructural development, tax payers still avoid tax.
4. Tax management in Orumba south L.G.A is effective and has resulted to increased generation of tax revenue.

On the basis of the above findings, the researcher recommends that;

1. The citizens should be sensitized on the need to pay their taxes as a civic responsibility.
2. Tax personnel should be persons of proven character
3. Government should ensure stricter enforcement of existing tax laws to ensure compliance.

TABLE OF CONTENTS

Title
page

Approval
page                                                        ii

Dedication                                                             iii

Acknowledgement                                                  iv

Abstract                                                                v

Table
of contents                                                    vi

CHAPTER ONE

1. Background of the study                                   1
   1. Statement of the problem                                 6
   1. Objectives of the study                                     8
   1. Research Questions                                          9
   1. Significance of the study                                   11
   1. Scope of the study                                           11
   1. Limitation of the study                                     12
   1. Definition of terms                                           13

References                                                      14

CHAPTER TWO

2.0 
LITERATURE REVIEW

2.1
History of Orumba-South L.G.A                         16

2.2
Meaning and definition of Taxation                     17

2.3  Statutory Tax Laws in Nigeria                            21

2.4  Tax Administration in Nigeria                             23

2.5  Sources of generating revenue                           31

2.6  Cannons of Taxation                                        33

2.7  The Purpose of Taxation                                   34

2.8  Tax System                                                    36

       References                                                      31

CHAPTER
THREE

3.0  RESEARCH METHODOLOGY

3.1  Introduction                                                    38

3.2  Research
Design                                              38

3.3  Sources/method
of data collection                     39

3.4  Population
and sample size                               39

3.5 Sampling
techniques                                        41

3.6 Method
of data analysis                                    42

    
         References                                                      42

CHAPTER
FOUR  

4.0  PRESENTATION AND ANALYSIS OF DATA

4.1  Introduction                                                    43

4.2  Presentation
of data                                                43

4.3. Analysis
of data                                               44

CHAPTER
FIVE

5.0  SUMMARY, CONCLUSION AND           RECOMMENDATION

5.1 Summary of finding                                       59

5.2 Conclusion                                                    60

5.3 Recommendation                                           62

5.4 Area of study                                                       63  

BIBLIOGRAPHY                                                       64

APPENDIX                                                       66

QUESTIONNAIRE                                                                                        67

CHAPTER
ONE

1.0  INTRODUCTION

1. BACKGROUND
   OF THE STUDY

The prime objective of every government is to maintain
law and order, to provide and maintain basic essential services without which
the community will be unimaginable and which by their nature cannot be left
appropriately in the hands of private entrepreneurs. Such services include
Internal Law and Order, Maintenance of National defense, provision of good
healthcare system, educational system, transportation system, agricultural
system etc. To cover the cost of providing these goods and services for the
public good, government must generate financial and adequate revenues. The
quest to governing meaningful financial resources has often led government to
designing and administering some efficient and effective revenue generation
systems. Primarily the main source of government revenue includes the
following:

1. Taxation
   on citizens
2.  Taxation on income of companies
3. Borrowing
4. Grants.

Amongst these sources, taxation (the demand made by the
government of a country for a compulsory payment of money by the citizens of
that country.) remains the most outstanding. This may be due to it being a
civic responsibility that must be performed by the citizens of the state. As a
non-penal by compulsory transfer of resources from the private sector, taxation
must be levied on the basis of equity, certainty, convenience, economy and productivity.
Unfortunately, taxes are not paid in exchange for specific things but are
collected for the sake of public welfare and interest.

       Government
often uses various kinds of taxations to generate the required revenues. For
instance, direct taxes which include personal income tax, often applied on
employees, sole traders, partnership, capital gain tax on companies, individual
and non- co-operate entities, capital transfer tax (applicable asset
transferred from one person to another), purchase tax, petroleum profit tax,
and company income tax has constituted a significant source of revenue to the
government. Similarly, indirect tax, e.g. stamp duties, custom duties,
industrial training fund, toll paid on federal highways, will have often
enhanced government revenues.

The
administration of tax in Nigeria
is in the hands of three relevant tax authorities viz:

1. The joint Tax Board
2. The federal Board of Inland Revenue
3. The various state Board of Internal Revenue

In
Nigeria,
persons liable to pay income tax include men, women, married or single,
trustees and executors, families, villages and indigenous communities. Though
government can also raise funds through natural resources such as oil, palm
oil, coal and gas which are exported, those alternative sources of income to
government are hardly enough to shoulder the burden of government expenditures,
especially in the area of economic and social spheres in each year, hence the
need for tax payment.

 We must emphasize here that income Tax Law must be interpreted in strict- to- sensor. There is no equity in tax law. The tax payer must be brought within the letter of the law and rigid adherence is the rule. Nothing should be read in and nothing should be implied. The onus of bringing a tax payer into the tax net is on the revenue or assessment authority. Another important point to note is that tax is not imposed on person or individual. Section 4 (1) of ITMA 1961 states that “the tax shall subject to the provisions of this act, being payable for each year of assessment upon income accruing in derived form, brought or received in Nigeria. Studies have shown that in Nigeria, workers pay more than the rich people who invest in various proper ties such as building, transporters, etc as a result of ineffective administration of taxes. Yet those investors are the category of people who would want government to move mountains in terms of raising their socio-economic well being, without meaningfully contributing towards the funds.

 Now that our various government are gearing efforts to revamping over bettered economy and improving the living condition of Nigerians, the need for the evolvement of more effective strategies to ensuring regular tax payment by taxable individuals need not be overemphasized. Taxable adults and organizations in various sectors of the economy must discharge their civic responsibilities. Unfortunately, this can only be achieved if tax systems are effectively administered so that people would in government revenue generation, willingly and without grudges pay their taxes. This will result to improvement in government revenue generation, hence the basis for this research study.

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