THE MANAGEMENT AND UTILIZATION OF TAX REVENUE IN ENUGU STATE. (A CASE STUDY OF ENUGU STATE BOARD OF INTERNAL REVENUE ENUGU)

CHAPTER ONE

1.0            INTRODUCTION:

1.1     BACKGROUND OF THE STUDY:

Man, no matter his religion or creed, had always lived communally. In every society, there has been one form of levy or the other imposed on the people from time to time to generate enough resources to improve their well being.

Fundamentally, however, it is of course a compulsory levy (tax) on income since the decision to pay tax is not that of the taxpayer. No rational human being would subject his earnings to tax. People pay tax because the law so stipulates. Also, it is the same fact that make people to look for ways and means bring down their taxable income and consequently their taxes from time to time.

The problem of capital formation in the underdeveloped economies as it relates to public finance, breaks down into three main parts. The first concerns the financing of social overhead investment, which must be undertaken directly by the government. The second deals with an intermediate zone in the actual investment projects are on private hands but the funds are made available through government finance. The third deals with the necessary incentives to private investment both domestic and foreign as they are influenced by taxation and other fiscal.

In the above three categories, government effect is directed towards maximizing savings, mobilizing them for productive investment and directing them so as to serve the purpose of a balanced development program. Taxation is this, a system of moving resources between the different segments of the economy. Whenever tax matters are in discourse, it pre-supposes the existence of government, which is higher authority that controls the actions of the rest of people by imposing taxes on them. To this end, tax is a universal liability and one cannot avoid payment of tax just by avoiding the use of any amenity built with tax money. It is essential therefore for one to understand that some amenities have exclusionary factors. Once cannot say, for instance, that he does not want to benefit from National defence and security. Hence, tax is levied universally to provide such facilities. This is unlike health services, electricity or