THE EFFECTIVE TAXATION IN LOCAL GOVERNMENT (A CASE STUDY OF UGWUOGO NIKE COMMUNITY)

ABSTRACT

Taxation is an important severe of government  revenue  and a wheel  on which the  economy  balance 

Taxation refers to a compulsory payment of money from private individuals, institution or groups to the government .

Taxation mean to some people    a means whereby the   government  collects money from the  general public. This set of individuals see it as unnecessary burden   and could  evade and  avoid on the basis of  predetermined  criteria.

Nigeria tax Authority presuppose that the citizentery  would  be honest to  declare their  real income in the  tax  return. This has been  the  status  grow  since the  inception of  organized  taxation in Nigeria.

The aim of this  work was to identity the problems  causes and  offer possible  solutions  to the  problems   militating  against the effective  taxation in Ugwugo    Nike community in  Enugu East local  government   area.

The non appreciation of these problems compound the problems encountered by tax administration

The  opinions of  the  tax  administrators  were sought in respect of these problems  and  its cause and  sought in respect of the problems and  its  causes and  how it affect them in their  role  as  tax  administrators 

The frequency contacts assigned to the  implications  of the findings were highlighted.

The work is also divided into five chapters.  Chapter one an introduction analysis, two  is the  review of related literatures, there deals with the methodology of research, which chapter four is for the  presentation and analysis of data presentation and   chapter five contain conclusion and recommendation.

CHAPTER ONE

BACKGROUND OF THE STUDY

 Taxation   referees to a compulsory transfer payment of money from private individuals, institutions  or  groups of  the  Government .  Tax is levied on the  basis  of  predetermined criteria  and  without receipt  of  a specific  benefit  of  equal value  (i.e it is  not  done  not build a school or a hospital personally for  you because  you  have paid  your taxes. Tax may be levied upon wealth,  income, profit and  or in the  form of a surcharge on princes. 

          The origin  of  taxation date back to the  reign of  Caesar, when Jesus Christ was asked  if it is right to pay taxes to Caesar, he simply said that what is  due to   Caesar should   be  given  to  Caesar implying  that  the  act of  imposing  taxes on the citizenry  is  justified.  Mathew chapter 22 verse 15 to verses  22..

 Taxes are different  from hospital  bill etc.  which though social service   but citizens  have to  support the  continuity  of  such  organization   that offer them  by paying a taken fee.

 STATEMENT  OF PROBLEM

 The major  problems  that has been  militating against the realization  of  sufficient revenue  through taxation in Enugu East local  government  are

1. Tax Evasion and  Avoidance: This problem is perpetuated  due to non- availability  of accurate  data of   the  taxable adults.

2. Another problem is  communication  gap between the  tax authority and  the    tax payers: most  if  not all   do not know how  much  they are  supposed to  pay as  tax  within a given  year.

3. Also the  tax  laws  are  written  technical  words and  are complex  for  the  comprehension of  the “ common  man” in  the  suburb.

4. Ignorance of the implication of non-payment of tax liability lies or tax avoidance are prevalent   in Enugu East local Government area.  Hence this research.

PURPOSE  OF THE STUDY

 The  researcher has  the following aims in mind in   conducting  this  study  1.  to  discover how  the  tax  evasion and  avoidance  contributes on non-  availability of  accurate data of the  taxable adults.

2. to know that  the  communication   gap  between the  tax  authority and the tax payers is dividing the   payment of taxes.

3. To  ascertain  how the technical words in tax  laws crate  confession into the public (ie tax payers)

4.  to showcases  the implication  of non payment of  tax liability lies.  

RESEARCH   QUESTION

 Below are    some of the  research question which this  study seeks  to provide  thee answer,

1. To what extent does  the tax evasion and  avoidance contributes on non-availability of accurate data of  the taxable adults?

2. To what extent does the communication gap between the tax authority and the tax payers contributes  to the  divinding revenue of the local government? 

3. to what  extent does technical words used in tax laws create confusion among tax  payers and  tax generators?

4. To what extent does non- payment of tax liability lies implicate individuals in local government areas? 

SIGNIFICANCE OF THE STUDY

 The research work arose from the pressing concern regarding the unsatisfactory effective   taxation in  Enugu   East  local government  areas, in view of  the    it is hoped  that the  result of the  study  will  be  beneficial to :

1. the  ploughing  the  looplisis for       tax  evasion and  avoidance

2.  phrasing  the  tax laws using  simple and  easily   understandable word  considering  the  high rate  of illiteracy in the  suburb.

3.  Communicating   prior to payment, the amount each  tax payer is to pay in a given year.

4. Establishing a data bank which  will be  stored in a computer for protection and  accessibility.

5. Individuals will made to know the  penalty for tax evasion.

6. individuals  masses especially people residing within Enugu East local Government in knowing how much  they will  pay as tax   and  where and  when  to pay  so as to  carry  out  their  civic responsibility.

7.  the local  government is generating sufficient fund  through taxation so as to  implement most laudable policy antiquated by them.

8.  the local  government  in plugging the  loopholes in taxation applied by them.

9. the  knowledge of  this work  will help the  masses   to  appraise the  work performed  by the local   government   in  view of the  knowledge of how much fund  is generated   through taxation

10. it will  also help to  bridge the communication  gap  between tax authority  and  tax  authority and    tax payers.

11.  the  students of  accountancy  department would  find it useful, since it  cuts a cross the  aspects of  taxation in Nigeria.

12. the  study will also  provide basis for  further studies in relevant tax laws and  taxation.

SCOPE OF THE STUDY

 This research  work is  concerned  with  the  effective taxation in local    government with  a case study of Enugu East local  government  area of Enugu  state of Nigeria.

DEFINITION OF TERMS

 Tax  evasion :  this means deliberate action by individuals  not  pay his tax  liability lies and  it is illegal.

Tax  Avoidance:  it is legal it means making good use of the options provided by the tax laws in  such  away that the tax borne  is reduced.      

    RELEVANT TAX  AUTHORITIES :  these  are institutions charged  within administration and collection of taxes in local  government areas  (i.e revenue department).

INCOME TAX MANAGEMENT ACT (ITMA):  THIS  DEFINED  TO MEAN THE  RELATE

issues  of tax administration concerning individuals petroleum profit tax act (APPTA): it related to  issues  regarding tax administration on petroleum company income tax (CITA) ; it related  to issues concerning companies with regard to tax   administration.