ABSTRACT
The level of revenue generated in the state has been in a declining form due to
poor administration and collections of taxes and lack of proper return of
accounts. These are the negative effects that affect government revenue
generation which are targeted to meet her basic functions like provision of basic
amenities for her citizenry in the state. The aim of this research study is to
evaluate the effect of tax administration on revenue generation to the Enugu
state government. The research design adopted in this study was survey research
method. Primary and secondary sources of data were used in collecting
information which was analyzed using simple percentages and hypothesis tested
using chi – square statistical method at 0.05 level of significant for validity and to
make decisions. Findings show that there was rampant incidence of tax evasion
and avoidance in the state, and the tax administration in Enugu state is
inadequate, not effective and not efficiently managed thus: inadequate staff and
facilities also hinder tax administration and collection. The researcher, in the final
analysis drew a lasting conclusion, some of which are:- the apathy of Enugu state
people towards payment of tax could be reduced by involving them in the
decision making of tax administration, collection and utilization of the tax
revenue. The environment should be made better by both the government and its
agencies. The staff of the SBIR Enugu should be well remunerated and ensure
adequate administration of tax laws in accordance with the laid down rules and
regulations.

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
In all generation, the problems of personal income tax generation and
administration continues to surface in one form or another in virtually every
society, especially in this part of the world. It is important to point out that
the federal government has taken adequate steps in effective tax
administration.
This failure on the part of the federal government is responsible for
poor financial positions of both the state and local government. Besides, this
inadequate planning and absolute laws governing taxation, evaluation and
collection is characterized by chaos.
This chaotic nature of the system can be appreciated by political
influence or interferences in the process of taxation during the civilian
administration in the country which gave rise to untrained and inexperienced
personal being entrusted with the work of collection and administration of
personal income tax.
The important of these issues to tax administration in the developing
countries like. Nigeria, can be seen from the following extract from tax
administration in under developed countries. The tax administration finds
himself working with a staff which is inefficient in experienced, and poorly
paid.
BOARD OF INTERNAL REVENUE ENUGU
The board of internal revenue Enugu was established to administer
income tax in Enugu state just as there are likely to states of the federation.
Income tax was first introduced in Nigeria in 1904 by late Lord Lugard.
The introduction of Native Revenue ordinance of 1927 was most difficult in
the Eastern areas of the country, due mainly to absence of recognized central
Authority Resistance to this form of direct taxation in such that it result to
riots notably in calabar, Owerri and the famous, Aba women Riot of 1929
which was so severe that it attracted a probe. Beside, the Native Revenue
ordinance were also Native direct taxation ordinance for the colony and the
Native income tax ordinance.
These ordinance were late modified and incorporated into the Direct
taxation ordinance No 29 of 1940, cap 54 and the income tax ordinance No 29
of 1943 respectively.
The direct taxation ordinance 1940 empowered native authorities to tax
Africans in their areas of jurisdiction while the income tax ordinance 1943
was for the taxation of non-Africans in companies. The two ordinances were
the foundation of our modern taxation which necessitated establishment of
board of internal revenue in each of the states of the federation which Enugu
Board of internal Revenue is one of them.