Accounting for Withholding Tax Operation in Nigeria: Its Relevance and Adequacy (A Case Study of Federal Inland Revenue Service, Ilorin)

 

TABLE OF CONTENT

Title page                                                                      

Certification                                                                    i

Dedication                                                                      ii

Acknowledgement                                                           iii

Table of Content                                                             v

CHAPTER ONE

INTRODUCTION                                                              1      

1.1       Background of the Study                                         1

1.2       Statement of Research                                            5

1.3       Objective of Study                                                  6

1.4       Justification of Study                                               7

1.5       Hypothesis of Study                                                8

1.6       Scope and Limitation of Study                                 9

1.7       Plan of the Study                                                    10

CHAPTER TWO

LITERETURE REVIEW                                                      13

2.1    Definition and Objective of Taxation in Nigeria          13

2.1.2 Classification of the System in Nigeria                      15

2.1.3 Canons of Taxation                                                 16

2.2    Nature and Objective of Withholding Tax System

in Nigeria                                                               18

2.3    Income to Which Withholding Tax in Applied

and Tax Applicable                                                  22

2.4    Duties of Parties involves in Withholding Tax            24

2.5    Administration and Implementation withholding

Tax in Nigeria                                                         31

2.6    Determination of Relevant Tax Authority                  37

2.6.1 Withholding tax return and income exempted

from tax                                                                 38

2.6.2 Offence and Penalties                                             40

2.7    Advantages of Withholding Tax System                    41

2.7.1 Contentious Issue on Withholding Tax                     42

2.7.2 Distinction between Withholding Tax and VAT          44

CHAPTER THREE

RESEARCH METHODOLOGY                                             47

3.1    Research Methodology                                            47

3.2    Research Design                                                     47

3.3    Types and Method of Data Collection                       47

3.4    Method of Sampling                                                48

3.5    Population and Sample Size                                     49

3.6    Method of Data Analysis                                          49

3.7    Statistical Techniques used in Data Analysis             51

 

 

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS                              52

4.1    Introduction                                                           52

4.2    Data Analysis and Interpretation                              53

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS         73

5.1    Summary                                                                73

5.2    Conclusion                                                             74

5.3    Recommendation                                                    76

5.4    Limitation of the Study                                            79

Reference                                                               80

 

CHAPTER ONE

1.1      BACKGROUND OF THE STUDY

The responsibilities of government toward its citizen include provision of infrastructure facilities security important welfare development project, to improve the standard of loving to promote economic development etc. It is quite obvious that such activities will only be possibly carried out through support from an efficient and effective financial base. The financial base can be gotten from various sources including “Taxation”. Taxation can simple be define as the concept and science of imposing the tax as the citizen (Sun Ni 2009). Tax in the other hand is a compulsory levy imposed by the government through its agents and for which it is not bound to offer service or consideration (Ola 2006). Tax is levied on income (individual) profit (enterprise and companies). Capital (capita gain tax) and consumption (tariff) of a subject (citizen). Basically, taxes are classified into direct and indirect taxes. This classification is based on how the taxes are paid.