AN EVALUATION OF THE PROBLEM AND PROSPECT OF TAX COLLECTION IN INTERNAL REVENUE SERVICE IN BAUCHI STATE

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Tax is invariably an enforced contribution of money, exacted pursuant to legislative authority if there is no valid statute by which it is imposed; a charge is not a tax. The classical purpose of taxation is the raising of funds to meet government expenditure. Redistribution of wealth and the management of the economy. The tax system can also be used to direct the course of the economy. It is often to encourage economic activities .Tax affects the amount available for spending by the private sector of the economy. Correspondingly, an increase in tax rate and gathering efficiency will affect the amount available for government spending. Not only that such increase or decrease no matter how minimal may have inflationary or deflationary effect on the economy. Secondly and particularly in the case of taxes on income, there is tendency of their imposition to encourage or discourage particular activities.

The significance of tax to the government and the state cannot be over emphasized. However achieving a high level of revenue through tax is not always an easy fit to attain. Problems encountered includes inadequate staff, bribery and corruption, mismanagement of tax collected, poor accounting record, etc.But  according to Adam Smith (1968), there are prospect the lies with the collection of tax. The research intends to investigate the problem and prospect of tax collection in internal revenue service in bauchi state.

STATEMENT OF THE PROBLEM

The problem confronting this research is to evaluate  the problem and prospect of tax collection in internal revenue service of bauchi state.

RESEARCH   QUESTIONS

What is the nature of taxation

What constitute the problems encountered in the collection of tax

What are the prospect of tax collection

What are the problems and prospect of  tax  collection in bauchi state

 OBJECTIVE OF THE RESEARCH

To determine the nature of taxation

To appraise the  problems and prospect of tax collection

To determine the problems and prospect of tax collection in bauchi

 SIGNIFICANCE OF THE RESEARCH

The research shall elucidate the problems and prospect of tax collection and profer possible recommendations for effective tax administration.

 STATEMENT OF THE HYPOTHESIS

Ho Tax revenue in bauchi is low

Hi   Tax revenue in bauchi is  high

Ho Problem of tax collection in bauchi  is low

Hi   Problem of tax collection in   bauchi   is   high

Ho    The prospect of tax collection in bauchi is low

HI    The prospect of tax collection in bauchi is high

 SCOPE OF THE STUDY

The study intends to appraise the problems and prospect of tax collection in bauchi state.

DEFINITION OF TERMS

 TAX     DEFINED

Tax is invariably an enforced contribution of money, exacted pursuant to legislative authority if there is no valid statute by which it is imposed; a charge is not a tax. The classical purpose of taxation is the raising of funds to meet government expenditure. Redistribution of wealth and the management of the economy. The tax system can also be used to direct the course of the economy.

PERSONAL INCOME TAX DEFINED

This is tax levied on income of individuals which  is earned either from employment ,trade, business, vacation or profession.