THE EFFECT OF TAX ADMINISTRATION ON REVENUE GENERATION IN ENUGU STATE

ABSTRACT

The level of revenue generated in the state has been in a declining form due to

poor administration and collections of taxes and lack of proper return of

accounts. These are the negative effects that affect government revenue

generation which are targeted to meet her basic functions like provision of basic

amenities for her citizenry in the state. The aim of this research study is to

evaluate the effect of tax administration on revenue generation to the Enugu

state government. The research design adopted in this study was survey research

method. Primary and secondary sources of data were used in collecting

information which was analyzed using simple percentages and hypothesis tested

using chi – square statistical method at 0.05 level of significant for validity and to

make decisions. Findings show that there was rampant incidence of tax evasion

and avoidance in the state, and the tax administration in Enugu state is

inadequate, not effective and not efficiently managed thus: inadequate staff and

facilities also hinder tax administration and collection. The researcher, in the final

analysis drew a lasting conclusion, some of which are:- the apathy of Enugu state

people towards payment of tax could be reduced by involving them in the

decision making of tax administration, collection and utilization of the tax

revenue. The environment should be made better by both the government and its

agencies. The staff of the SBIR Enugu should be well remunerated and ensure

adequate administration of tax laws in accordance with the laid down rules and

regulations.TABLE OF CONTENT

COVER PAGE------------------------------------------------------------------------

TITLE PAGE-------------------------------------------------------------------------i

APPROVAL PAGE------------------------------------------------------------------ii

DEDICATION-----------------------------------------------------------------------iii

ACKNOWLEDGEMENT-----------------------------------------------------------iv

ABSTRACT--------------------------------------------------------------------------v

TABLE OF CONTENT-------------------------------------------------------------vi

CHAPTER ONE: INTRODUCTION

1.1 BACKGROUND OF THE STUDY---------------------------------------------1

1.2 STATEMENT OF THE PROBLEM -----------------------------------------8

1.3 OBJECTIVE OF THE STUDY ------------------------------------------------9

1.4 RESEARCH QUESTION -----------------------------------------------------10

1.5 STATEMENT OF HYPOTHESIS--------------------------------------------12

1.6 SIGNIFICANCE OF THE STUDY-------------------------------------------12

1.7 SCOPE OF THE STUDY-----------------------------------------------------13

1.8 LIMITATION OF THE STUDY---------------------------------------------14

1.9 DEFINITION OF TERMS---------------------------------------------------15CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 GENERAL OVERVIEW ABOUT THE STUDY----------------------------17

2.2 ORIGIN OF TAXATION-----------------------------------------------------20

2.3 TAX ADMINISTRATION-------------------------------------------------------------24

2.4 PURPOSE OF TAXATION------------------------------------------------------------27

2.5 QUALITIES OF A GOOD TAX SYSTEM--------------------------------------------31

2.6 CLASSIFICATION OF TAXES-------------------------------------------------------34

2.7 ENUGUSTATE BOARD OF INTERNAL REVENUE------------------------------46

2.8 THE REVENUE GENERATION IN ENUGU THROUGH TAX -------------------48

2.9 INADEQUATE STAFF AND FACILITIES HINDER TAX GENERATED--------49

REVENUE IN ENUGU STATE

2.10 INCIDENCES OF TAX EVASION AND AVOIDANCE IN ENUGU STATE----52

2.11 EFFORTS MADE BY ENUGU STATE BOARD OF INTERNAL REVENUE TO

IMPROVE REVENUE GENERATION--------------------------------------------56

REFERENCE ------------------------------------------------------------------------62CHAPTER THREE: RESEARCH METHODOLOGY

3.1 INTRODUCTION --------------------------------------------- 63

3.2 RESEARCH DESIGN --------------------------------------------- 63

3.3 AREA OF THE STUDY--------------------------------------------- 63

3.4 POPULATION OF THE STUDY --------------------------------------------- 63

3.5 SOURCES OF DATA COLLECTION-------------------------------------------- 64

3.6 DETERMINATION OF SAMPLE SIZE ---------------------------------------------65

3.7 METHOD OF DATA ANALYSIS --------------------------------------------- 66

3.8 VALIDITY TEST --------------------------------------------- 68

3.9 RELIABILITY TEST --------------------------------------------- 68

REFERENCE

CHAPTER FOUR: PRESENTATION, INTERPRETATION AND ANALYSIS OF DATE

4.1 DATA PRESENTATION-------------------------------------------------------------70

4.2 DATA ANALYSIS -------------------------------------------------------------------70

4.3 TEST OF HYPOTHESIS -------------------------------------------------------------83CHAPTER FIVE: SUMMARY OF FINDINGS , CONCLUSION AND

RECOMMENDATION

5.1 SUMMARY OF FINDINGS--------------------------------------------------------92

5.2 CONCLUSION-------- --------------------------------------------------------------94

5.3 RECOMMENDATION -------------------------------------------------------------96

BIBLIOGRAPHY-------------------------------------------------------------------------98

APPENDICES-----------------------------------------------------------------------------100