ABSTRACT
This topic
is all about the PROBLEMS OF PERSONNEL
INCOME TAX MANAGEMENT. The concept of paying tax in Nigeria is sometimes constitute a
problem to the individual tax payer because it is a compulsory payment leviued
by the government on individual. This project tend to examined those problem of
personnel income tax management studies
researchers will finds is this project a vital information that could be pass
out as a solution to the impending problem.
TABLE OF CONTENTS
Title page
Approval
page
Dedication
Acknowledgement
Abstract
Table of
content
CHAPTER ONE
1.1
General introduction
1.2
Background of the study
1.3
Statement of problem
1.4
Objective of the study
1.5
Significant of the study
1.6
Scope and limitation of the study
1.7
Definition of the terms
CHAPTER TWO
2.1
Review of related literature
2.2
The concept of taxation
2.3
The meaning and rational of personal income tax
2.4
Effects of personal income tax on individual tax
payers
2.5
Relief’s rates. All owances and assessment and
administration
2.6
Problems of personal income tax management
CHAPTER THREE
Research
design and methodology
3.1
Sources of data
3.2
Secondary sources
3.3
Location of data
3.4
Methods of data collection
CHAPTER FOUR
4.1
Summary of findings
CHAPTER FIVE
5.1
Recommendations
5.2
Man power problem
5.3
Establishment of revenue corps
5.4
Educating the tax payer.
CHAPTER ONE
1.1 GENERAL INTRODUCTION
Income tax was first introduced in Nigeria
by late lord laggard in the year 1904. However, the Nigerian income tax is the
modern form of tax staring from 1940, although there was a simplified type of
tax dating back to 1927.
The direct taxation ordinance of 1940
was to levy tax on income of Africans. The administrative officers were
unscientific and without any form of uniformity as well as discriminatory in
their tax assessment.
The
recommendation by bailsmen fiscal
commission of 1958 taxing income of individuals was embodied in section 70 of
the 1960 Nigerian constitution and income tax management act (ITMA).
The provision of the act which deals
with the fundamental income tax principles applicable to the whole country
relates to.
i. The basis for computing income of
individuals
ii. The determination of residence
iii. The treatment of providence funds
iv. The capital allowances for the assets used
in producing income
v. The treatment of losses incurred in a
trade business profession or vocation
vi. The allowable and disallowable expenses
for income tax purpose.
Vii. The incomes which are exempted from tax.
1.2 BACKGROUND OF THE STUDY
In every country there are some
certain service which the government must provide citizens to the country
because of its good nature. The services are indispensable in life that
individual or corporate bodies are not allowed to provide them or even if, they
do, they may not allowed to monopolized the supplies or the p5roduction.
Government does this to ensure that the supply of such goods and services
involves a large amount of money and expenses. How does government of a country
get such amount of money to finance the supply of such important goods and
services to the citizen?
For the economic balance to be
maintained in an economy. Government must find a way of financing her
activities. One of his sources of income of this type is through tax. This can
be in form of personal income tax.
1.3 STATEMENT OF THE PROBLEM
Taxation in every sense is a tool of
economic reformation, governments the world over have always found ways of
imposing various taxes on their subjects with
view to raison revenue for its expenditure and of which personal income
tax is one of such major source.
Taxation, therefore, constitutes a
veritable instrument of shaping and directing economic activities.
However, these objectives are not
always being achieved due to some certain set backs traced to the management of
personal income tax some of the set banks are as follows
i. Low
level of literary resulting to inability of keeping records of transactions.
ii. Problem of identification of the tax
payer especially the self employed in small trade and business.
iii. Man power problem in the tax authority.
iv. Some of those in employment may have other
taxable income besides their employment income which the may not disclose.
1.4 OBJECTIVE OF THE STUDY
It is the researchers belief that
through the basis of this research shall in the main to be the problems of
personal income tax management in Nigerian societies.
There are some problems which tax
authority faced which is hindering personal income tax management in Nigeria.
Since the initial survey on personal income tax management had reveled some
lapses the objective intended to be achieved through this study may be
summarized as follows.
To determine the impact, personal
income tax has on the individual payers.
1.5 SIGNIFICANT OF THE STUDY
It is anticipated that the result o
this study will help being to light the problems of personal income tax
management which will aid the management to find the impact and remedy of
Nigerian economy and also their income tax assessment and computations.
It is the researchers hope that this
5tuy will serve as a standard reference literature to individuals both in
employment and self-employed, the tax authority and the general public.
This study is also intended to serve
as a guide for future researchers on the relate coverage area. Although
important academic, it will widen the horizon of readers on what constitutes
personal income tax, tax administration and its associated problems.
The study helped the researcher not
only to meet up with an important academic requirement for graduation but also
to discover the problems hindering effective administration of personal income
tax.
1.6 SCOPE AND LIMITATION OF THE STUDY
This study limits itself to the
problems of personal income tax management with regards to individual citizen
of Nigeria.
The most obvious limitation in this
research was finance. The cot of transportation was too high for the researcher
to bear. This is because the study was conducted at the time nation was
engulfed in a striped action by nearly
all the labor unions in the country including those in the petroleum industry.
Another major limitation as we can see
is time. There was difficulty in rationing time so as not to let the other
academic spheres suffer. Added to this was the time limit lecithin which the
project should be submitted.
Despite these limitations believed the
report of the study remains concrete and reliable.
1.7 DEFINITION OF THE TERMS
Tax is a compulsory charge imposed by
the public authority such ass federal state and local government for the
general purpose of government as defined by J.C. Winfrey. It is levy regularly
imposed and regarded as a contribution to the general pool from which most
government expenditure are financed.
General tax can be defined as a transfer
of resources and income from the private sector to the public sector in order
to achieve some of the nations economic and social goods.
There are various tax payable in Nigeria there are broadly
categorized into two.
i. Direct tax
ii. Indirct tax
INDIRECT
TAX is a levied on goods and service rendered which are shifted
in part or in full to the final consumer who does not even know either when he
pays or exact amount the pays.
DIRECT TAX is the tax
levied on individual companies or corporation. In order words it is levied oh
income and properties of those who pay them and bear the burden directly. From
this direct tax we dersued personal income tax as the subject of the study we
also have other example of direct tax know as capital gain tax petroleum profit
tax etc.
There are
forms of tax these are as follows
i. Progressive tax
ii. Regressive tax
iii. Proportional tax
iv. Advalorem tax
Progressive tax is a system of tax in
which the income increases as the tax rate increases. The burden of this system
of tax fall on those with higher income
Regressive tax is when it takes a
smaller part of income as income increases.
Proportional tax is when the rich pays
more than the poor in absolute terms.
Advalorem tax is the tax charged
according to the value of commodes.
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