CHAPTER ONE
In Nigeria their so many form of taxation dating back of the
days of our great ground father whose by communities dated themselves through communal labour to prosecute community projects.
Taxation is process on machinery by which group or communities made contribution from their income in some agree amount and method for the purpose providing amentias for the society. It is because of this it I often referred to as civic responsibility.
It is important to note that the present tax has in Nigeria was been out of the Rouseman’s Commission of inquiry of last.
But before that, we only had what was called the income tax ordinance for the colonies and which was very similar Raismars recombine nature was the basis for providing in section to, subsection of the Nigeria prospects for reform (Anarticle published in Business Time on May 20, 1786).
Taxation can be divided in two basic profiles we have the direct taxation sand indirect tax is based on ascertainment of income rather on individual a group of individuals co-operate bodies and institution under this was have personal income tax and company income tax. The personal income is one which of individual is assessed and resident by the state on those individual resident in the state, which the companies income tax is cleared on corporate bodies is the responsibility of federal government through the federal board of inland revenue indirect taxation is lived on consumption of goods or services and each of consumption.
In various countries, various government rely heartily on taxation on as in aid to encouraging capital formation policy.
In a developing economy, tax may be collected strutted in such way that the high may be collected and even raise revenue for the economy of the country.
Taxes are one of the major sources or revenue for all
government in Nigeria.
The taxes collected income back to the tax payer in the form of social amenities, like building as school, hospital.
Nigeria tax is an assessment imposed by the State of Federal Government to enable them provide service for Nigeria citizens present day tax administration in Nigeria is guided by the following Act Decree:
1. Income tax management Act (ITNIA) 1961. This governs the taxation of individual. (Individuals, trustees, executors, partnership and families) the Act was amended by the finance (miscellaneous taxation provision) Decree 1986,1983,1990,1992, 1994 and 1996.
2. Company Income Tax act (CTA) 1979, this registered companies. It also suffered some amendments.
3. Petroleum Profit Tax Act (PPTA), 1959 as amended this Act regulates the assessment and collection of petroleum. Tax payable by entries that engage in the secretion and sale of petroleum oil in Nigeria.
4. Capital Gains Decrees (CGD), 1976, this was introduced by Decree 44 of 1967. it takes care of gain accruing to any person on or after 1st of April 1967 on the disposal of fiscal assets.
The existence of tax evasion and tax avoidance in Nigeria tax
system poses a lot question in the inquisitive mind of some people especially in the board of inland revenue as to the way and how of this existence.
This brings about reactions from various sections of the economy. This reaction are the problems this research work going to address itself to.
Based on the statesman of problem this study, the write
intends to x-ray the following issues as decide the mind of the public:
15. HYPOTHESIS
The null hypothesis (Ho): revenue generated form tax has a negative impact on the development of Nigerian Economy. The alternative hypothesis;
>Revenue generated from tax has a positive impact on the development of Nigerian Economy
Hypothesis II
Null hypothesis (Ho): that tax aviation and avoidance has created a reduction in the revenue generated from tax
(Ha) the alternative hypothesis; that the revenue generated from tax is more merger compare to revenue generated from other source as such government cannot do without tax.
The way in this term paper has been planned and carried out
off enough information and explanation to inquisitive minds. This project is aimed to beneficial to the following:
Tax is defined as a levy imposed by the government against
the income profit or wealth of the individuals, partnership and organization, also it is a levy the government makes no direct benefit to the tax payer.
Taxation is divided into various types such income tax, corporate tax, capital transfer tax.
Classification Of Taxes
1. PROPORTIONAL TAX: This is a system of taxation where by people pay tax in proportional to their incomes for instance if a cocoa farmer who earns N20,000 should pay N2,000.
2. REGRESSIVE TAX: This is a system of taxation whereby the poor man pays some amount as the rich man and also where the amount paid is not recited to the person’s income, e.g. community tax.
3. DIRECT TAX: This is a system of taxation born or paid directly by the payer to the government, in this people know what they pays annually. It is also a tax the impact and incidence of taxation fail on and the same person that pays it. E.g. personal income, company tax, expenditure tax.
4. INDIRECT TAX: This is tax imposed on person but paid partly or wholly by another person. The impact and incidence falls on different person e.g. impact duties, export duties, exercise duties, purchase tax, custom duties and entertainment tax.
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