ASSESSING THE EFFECT OF TAX EVASION ON REVENUE GENERATION OF LOCAL GOVERNMENT ADMINISTRATION (A CASE STUDY OF MORO LOCAL GOVERNMENT)
TABLE OF CONTENT
TITLE PAGE PAGES
CERTIFICATION I
ACKNOWLEDGEMENT II
DEDICATION III
TABLE OF CONTENT IV CHAPTER ONE
1.0 INTRODUCTION
1.1 OBJECTIVE OF STUDY
1.2 SIGNIFICANT OF THE STUDY
1.3 SCOPE OF THE STUDY
1.4 LIMITATION OF THE STUDY
1.5 RESEARCH METHODOLOGY
1.6 PLAN OF THE STUDY
1.7 DEFINITION OF TERMS
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 DEFINITION OF TAXATION
2.2 TYPE OF TAXATION
2.3 EFFECT OF TAXATION IN LOCAL GOVT
2.4 HOW TAXES ARE AVOIDED AND EVADED
2.5 REASON OF INEFFECTIVE TAXES COLLECTION
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 POPULATION AND SAMPLE DESIGN
3.2 INSTRUMENT
3.3 PROCEDURE OF TAX ADMINISTRATION
3.4 METHOD AND DATA ANALYSIS
3.5 HISTORICAL BACKGROUND OF MORO LOCAL GOVT
CHAPTER FOUR
4.0 DATA ANALYSIS AND PRESENTATION
4.1 INTRODUCTION
4.2 STATE OF HYPOTHESIS
4.3 TEST OF HYPOTHESIS
4.4 ANALYSIS OF RESPONSE
CHAPTER FIVE
5.0 SUMMARY OF THE FINDINGS
5.1 RECOMMENDATION
5.2 CONCLUSION
BIBLIOGRAPHY
CHAPTER ONE
1.0 INTRODUCTION
Taxing techniques is a process by which government of a given country or society increases and inspect irrespective of utility lived and public so as to acquired income for themselves
So taxes are the most important source of government income. A tax is defined as a compulsory contribution imposed by the public authority irrespective of exact amount of definition toward three characteristics of tax
It is compulsory contribution imposed by the government on the people residing on the country. Some it is a compulsory payment, a person who refuses to pay a tax is liable to punishment
Tax is a payment made by the payer ,which is used by the government for the benefit of all citizen. The state uses the revenue collected from tax to provide hospitals, schools, public utilities e.t.c which all people benefited.
Lastly, tax is not levied in return for any specific services rendered by the government to the payer. An individual can not ask for special benefit from the state in return for the tax paid by him. That is the essence of tax is the absence of the direct proquo between the tax payer and the public authority.
It implies that the tax payer can not return something equivalent to tax paid from the government . however, it endearous to demonstrate the necessity the interest of efficiency which managed as per planning and flow of logical routine which confirm to a flexible amalgamation of the account concern.
Infact, the process of reframe generation of any local government does not much more compulsory take how the administration distribute the money which is being generated so these will bring about the effect of tax evasion
Finally, revenue collection have certain effect on the tax collected and the effect when generated has on impact on the society
1.1 OBJECTIVE OF THE STUDY
For the support and for the purpose of administration, this project is limited to the work of tax officer and tax evasion it also bring out the distribution of an accounting officer since tax generally is money paid for the support and purposes of administration
Therefore, the objective of the work is analyzed as follows: if the early stated problem concern taxation generally are beloved the assurance of protection of local industries in certain for the fact that these money collected will be used to develop and this will cause discouraged so, if these intending problem are solved, the imposition of tax on some goods,& commodities will cause discouragement in consumption and that considered to be society understandable such as good that are dangerous to human health.
Another objective of solving these problem is that collection of tax will bring contract the movement of the society so as to prevent hylation.
More so, the major objective of solving these problem is that, if all dejanter are educated and all tell know more about the advantage they will drive from paying tax as at when due.
1.2 SIGNIFICANCE OF THE STUDY
The state internal kereme board is the body in charge of the collection of personal income tax in the state. An individual resides and these will bring about the importance of or the achievement of these project work and as well as will be needed for the tax and society at large.
However, those research work is so important for the fact that it bring the reason for rising revenue where a tax payer is paying tax and doesn’t know where his /her money is ending to it encouraged them for it show them why tax is important and what the will also achieve if not individually they will achieve something as a community
It is also important because it educated them on how tax collection prevent inflation and develop their local industries which implies discouragement of consumption of imported goods, so as to enable them earn income on their local sales {it control the movement of the economy }
The work also show the process taken in collection one disbursement of it as well it state clearly the people or official responsible for each duty in the tax and accounting world. Also specify the roles played by the tax issued false receipt to people, their punishment include payer that the family to pay but want to avoid it or rense to pay
1.3 SCOPE OF THE STUDY
The scope of this topic ‘’accessing the effect of fax evasion on revenue generation of the local government administration’’ cover the area of tax collection and utilization {disbursement } on the local government administration before the analyzing of how the records are being kept
Thus, this research project work mainly designed among other thing to find out how the tax collected only by the public authority?
IT also cover the following area:- introduction to the topic, statement of problem objective of the study, significant of the study, scope and limitation of the study, definition of terms, literature review definition of taxation and types of taxation effect of tax evasion, how taxes are avoided, research methodology procedure and population sampling design, procedure of tax administration method and data analysis of responses fixtures, summary of the finding conclusion and recommendation
1.4 LIMITATION OF THE STUDY
This study is limited to the local government because of time factor and considering the cost of transportation and other resource in carryout the research work
This study is limited to Moro local government kwara state it should be noted that whatever is obtained here is also similar to other local government in Nigeria. Insufficient information is one of the problem that has hundred this research work such as inadequate and improper keeping of records, some of the document in use were out of stock and the government has not provided fund for the pronouncement of the necessary documents
However, the researcher are able to overcome these problem before the completion of this research work
1.5 RESEARCH METHODOGY
For the purpose of adequacy of data needed for the project so as to obtain enough and reliable information, the researcher decided to use personal interview only for those who hold responsible position in the ministry
Although, the researchers received minimum cooperation from them, it is believed that the answer provide and the result of the personal interview provided enough data and information needed for drawing meaningful conclusion
Some of them as a basis of assumption that the purpose of the project was to check the serete of the government spending and fair balancing and know how much his been generated but we made them to believe that the existing system should be appraised for the fact that government work on effect of data evasion and nothing more
However, among these interviews for the purpose of this project are the tax controller and collector including the head officer in charge of department of local government at the office of the chairman for tax in revenue of internal affairs fact and figure relating to the project execution and performance were collected for analysis we were strong confused that the number of responses to personal interview were satisfactory enough
1.6 PLAN OF THE STUDY
This research work has been classified into fire chapters, each chapter comprises the following:- chapter one, included the objective of the study significant of the study scope of the study, limitation of the study and research methodology.
Chapter two, deals with literature review definition of taxation, type of taxation effect of taxation in local government, how taxes are avoided and evaded and reason for ineffective taxes collection
Chapter three, explains briefly on the population and sampling design instrument procedure of tax administration method and data analysis
Chapter four, contain introduction of chapter, data analysis and presentation to research questionnaire according to the state and test of hypothesis and analysis of response
Chapter five, discusses the findings, conclusion recommendation summary and suggestion for future study
1.7 DEFINITION OF TERMS
Tax –it is the compulsory contribution imposed by the government on the people residing in the country. It is an assessment by the government. Although the need of government complexity is social organization with the development of human societies takes government involvement increasingly important.
However, government can not perform these function without financial support of the people it is therefore financial support
TAXATION :- This is a system of raising money from citizen income corporate body by the government
TAX LAWS:- These are laws and principles that govern the collection of tax
TAX AVOIDANCE :- This value estimate for taxation fixed amount of tax fine. It is also the determination of the amount of tax to be paid by an individual or group of person or companies in a given year
TAX DILIGENCES :- It referred to as failure of payers to abdication on the day it is due. It is the in ability to pay tax because of in adequate of funds.
TAX RATE:- This is the percentage at which the value of tax base to be paid is determined or the amount of tax charged in the case of direct tax
TAX PAYER :- This is the person who will pay tax to the authority
TAX EVASION :- This is an illegal way of avoiding tax responsibility by tax payer
CHAPTER TWO
2.0 LITERATURE REVIEW
There are three arms of government namely:- local state and federal government in Nigeria, the local government is referred to as the third their of government it is created to give essential services to the rural drivellers in other to improve the lots of people in the area
Local government according to the united can be defined as a political subdivision of a nation or in a federal system, state which is constituted by law and has a substantial control of local affair including the power to impose tax lab our for a prescribed
THE SYSTEM OF LOCAL GOVERNMENT PERFORM
Before 1977, there was no uniform system of local government administrative in Nigeria since after 2ND world war, the colonial government or empire wanted to democratize local government as a basis foe social and economic development be local government is just regarded primarily agency which is a vehilce for local and economic development
Finally, local government which is subdivision of the country federal structure and also control over the affair of the people in their constancies so local government have a right to impose tax for prescribed purpose
.