Taxation as a Way Forward from Declining Oil Revenue in Nigeria

ABSTRACT

The study was embarked upon to review and examine taxation as a means of generating revenue that will serve as a way forward from declining oil revenue in Nigeria.

The study’s objectives are; to look into taxation as a way forward from declining oil revenue, to review the impact of taxation on the economic grow and development, to run through the Nigeria tax system regarding its administration, enforcement, collection and remittance of taxes and consider ways of making the Nigerian tax system more effective.

Regarding the methodology of this study, the data used was it was a literature review was sourced from secondary data such as journals, articles, internet, google scholar etc. And from the sources, information were collected, studied, analysed and collated which enabled the researcher to draw the necessary conclusions with high degree of precisions.

The findings of the research work are that; taxation forms a great part of revenue generated in Nigeria, revenue generated from tax impacts the Gross Domestic Product (GDP), tackling tax evasion and avoidance as a means of improving the effectiveness and efficiency of the tax system and the impact of adequate alignment of the tax system on the effectiveness and efficiency of it enforcement and collection.

This research work will be adding the already existing body of literature with respect to this subject and form a base for future researchers on this subject.

Conclusively, the research indicated that taxation forms a significant aspect of government for revenue generation. And that measures to deal with some of the issues affecting the system like tax evasion and avoidance tackling tax evasion and avoidance should be more of control measures and not elimination measures as it cannot be ruled out of any tax system, The use of the funds generated from tax should be made more open with physical proofs of proper utilisation (more disclosures to taxpayers) amongst others.

Table of Contents

ABSTRACT  i

ACKNOWLEDGEMENTS  ii

LIST OF ABBREVIATIONS  iii

CHAPTER ONE  1

INTRODUCTION   1

1.1 Background of the Study  1

1.1.2 Regulations Guiding the Oil Sector  2

1.1.3 The Impact of the Oil Sector on the Nigerian Economy  2

1.1.4 The Problems in the Oil Sector  3

1.1.5 Causes of the Problems in the Oil Sector  3

1.1.6 Current State of the Oil Sector  4

1.2 STATEMENT OF THE PROBLEM    5

1.3 OBJECTIVES OF THE STUDY  9

1.4 RESEARCH QUESTIONS  10

1.5 SIGNIFICANCE OF THE STUDY  10

CHAPTER TWO   11

LITERATURE REVIEW     11

2.1 INTRODUCTION   11

2.2 THE THEORITICAL FRAMEWORK   16

2.2.1 Concept of Taxation   18

2.2.2 Types of Taxes  19

2.2.3 OBJECTIVES OF TAXATION   20

2.2.4 FEATURES OF THE NIGERIA TAX SYSTEM    22

2.2.5 CHALLENGES OF TAX ADMINISTRATION IN NIGERIA   24

2.2.6 REASONS FOR TAX EVASION AVOIDANCE  29

2.3 CONCEPTUAL FRAMEWORK   30

2.4 EMPIRICAL REVIEW    34

CHAPTER THREE  35

RESEARCH METHODOLOGY   35

3.1 INTRODUCTION   35

3.2 PHILOSOPHY OF THE RESEARCH   35

3.3 DESIGN OF THE RESEARCH   36

3.4 SEARCH FOR STUDIES  37

3.5 DATA COLLECTION   38

3.6 ETHICS OF THE RESEARCH   38

3.7 DATA ANALYSIS PLAN   38

3.8 APPROACH OF THE RESEARCH   39

The main strategies for a business research study can either be quantitative, qualitative or mixed method.39

CHAPTER 4  40

FINDINGS  40

4.1 INTRODUCTION   40

4.2 TAXATION FORMS A GREAT PART OF REVENUE GENERATED IN NIGERIA   41

4.4 Tackling tax evasion and avoidance as a means of improving effectiveness of the tax system   57

4.4.1 Dealing with tax avoidance and evasion-Practical Difficulties  57

4.4.2 Strategies to deal Tax Evasion and Avoidance.58

4.5 Impact of adequate alignment of the tax system on the effectiveness and efficiency of its enforcement and collection.60

CHAPTER FIVE  62

ANALYSIS and DISCUSSIONS  62

5.1 DEDUCTIONS AND AGREEMENT WITH OTHER STUDIES  62

5.2 DISAGREEMENTS WITH THE STUDY  72

5.3 Limitations of the Study  72

CHAPTER SIX   73

CONCLUSIONS/RECOMMENDATIONS  73

6.1 CONCLUSION   73

6.2 RECOMMENDATIONS  74

6.3 RECOMMENDATION FOR FUTURE RESEARCH   75

CHAPTER SEVEN   76

REFERENCES  76