ABSTRACT
Tax as a means of income redistribution in Nigeria
according to the universal library in volume seven said that income
redistribution is the proportion of the national income going to w age earners
it shows the individual differences in the accrued income.
Tax enables us to know the taxable
income due to us this study is mainly carried out to determine if or not we are
over charged or not and to ascertain the effect of taxation as a means of
redistribution in Nigeria.
It enables the reader to know how, why an when tax came into existence an also
what tax is all about.
In chapter I is the introduction,
background of the study, statement of
the problem, objective of the study, significant of the study, scope an
limitation of the study, Definition of terms and references. Chapter II shows
the overview of the types of tax, agencies responsible for taxation
&References. Chapter III is the research metrology, method of data
collection, secondary data, method of investigations, location of data an tools
of analysis.
Chapter IV
is the summary of findings, general benefit of taxation & references.
Chapter V, conclusion, recommendation & bibliography.
CHAPTER ONE
1.1
INTRODUCTIONS
As everybody has own aim to acquire income and show how he
or she has income over the other, the emergency of tax began to arose as a way
whereby some part of the individual, companies and co-operate organization an
taxed an little portion refrained to the cost of the stages.
Thus by the process of taxing or cutting some be of income
form an individual, companies or co-operate organization, the remaining are t
he accused to know how individual is
Although in Nigeria, the origin of tax can be
dated back to pre-colonial era. Meanwhile in the period of time tax collection
and administration, which usually carried out, by the Emir, chief and their
appointed agents. The system at that time was highly functional for that time,
it was extremely arbitrary.
By that
time, tax collection developed from the northern state of the country and
finally proceed to the southern state.
On advert of the British about 1900, the administration of
tax was affected through several amending ordinances (non Acts and Decrees),
which principally entrusted the responsibility of collection of taxes on local
authorities.
Income tax
was introduced for the first time in the northern part of Nigeria in 1904 by
law Lugard By virtue of an amended ordinance passed in 1918, Income t ax also
introduced in some part of western Nigeria. Income tax was not introduced in
the Eastern part of the Nigeria
until late 1920’s one to the strong resentment to the composition that part of
the country.
However what can be regarded as the modern form of income
taxation in our country came into existence in 1940 under the direct taxation
ordnance No 29 of 1943.
In 1943, by ordinance personal income tax the modern an
progressive form and could be saw to have been introduced in Nigeria, ever
through the administration and collection of tax was still share between the
British and the local authorities.
1.2 STATEMENT
OF PROBLEM
Some arrears where tax study may not help to show any
changes or where it might be disrupted that is the practice includes areas
where there are non-comphance and they include.
(a)
Falsification of finical records
(b)
Failure to file income tax returns
(c)
On reported Income
(d)
Failure to state all benefits in kinds
(e)
Failure to emt sources decisions.
(f)
Claiming improper dedication, tax credit or expenses.
1.3 OBJECTIVE
OF THE STUDY
Since tax
was all bout income or revenue greater for the government it becomes obvious
and very necessary that tax should be studies for many benefited reasons, which
include
(1)
To find out how tax can reduce inequality of income
(2)
To know if consumption of commodities regards as
harmful in tax
(3)
To know how tax serves as sources of revenue for
government
(4)
To show how tax export promotion strategies
(5)
To find out how tax is used to control inflation
(6)
To find out how tax is used to protect the infant
industries
1.4 RESEARCH
QUESTION
(1)
How can tax reduce Inequality of Income
(2)
How would consumption of commodity be regarded as
harmful in tax
(3)
How can tax serves as sources of revenue for
government
(4)
How would tax export promotion strategies
(5)
How can tax be used to control inflation
(6)
How can tax be used to protect the infant industries.
1.4
SIGNIFICANCE OF THE STUDY
This research project will be of immense benefits to the
academic world in the sense that it will stimulate future research.
It will equally be of immense benefit to the federal
government of Nigeria on the
scene that the activities of taxation in Nigeria
The federal government appreciates it also because they
use it to control inflection in an economy.
When there is inflation in the economy government can tax
away the excess income in the lands of the society and thereby reduce the aggregate
demand which eventually losing the price spiral down in the economy.
They also uses tax in order to stimulate the economy
towards growth and development. This could be achieved through tax incentives
to investors, tax concessions tax holidays to new firms or investors that could
lend to industrialization and development of the economy. This issues of tax
helps the federal government to meet up with its social, economic and political
obligations eg building schools, hospitals, good roads, protect the populace
from internal and external aggression etc. from internal an external aggression
etc. Government uses tax instrument to raise revenue.
However, this study would be extended to powers of local
government and the federal government on the ways by which they use tax to
carry out their job on the distribution in Nigeria.
1.5 SCOPE AND
LIMITATION OF THE STUDY
The study of tax makes one to be in the position to be
called upon anytime to make some sensible contributions on the affairs of
government on which tax measure should be applied as this is usually when there
is deflation or inflation.
To the person who study and practice t ax are called tax
parishioners and duties are mainly to give practitioners an duties are mainly
to give practitioners and duties are mainly to give advices or even work in tax
offices thus the manager practice tax in Nigeria.
EMPLOYMENT PURPOSE
This study of tax serves as a means of providing job
governed with certificates of been practitions, it gives the opportunity of been
employed in the term office to come and practice what he has learn’t and
thereby increasing our labour force in the country.
But the reasons for urgent tax study does not just means
the four above alone, their various reasons which would be buttressed in
subagent to the minimum understanding
1.6 DEFINITION
OF TERMS
Tax being income or revenue collection generates for
government, this will be necessary and obvious that t ax should be studied for
some reasons like.
1. PROGRESSIVE
TAX
A tax is said to be progressive, if its rate increase as
the size of income or stock of wealth which is being taxed the burden of a
progressive income tax falls on those with higher incomes. E.G Mr. X earns N20,
000 and pays N2, 000 as tax per anum 10% & Mr. Y earns N80, 000 and pays
N16, 00 as tax a year. His rate of tax is 20%. In though is situation, income
axis progressive, it increases with the rate of income.
11 DIRECT TAX
It means a tax borne to paid by a person or whom it is
legally imposed. The burden is expected to fall upon the person who actually
pays it. That the impact and the incidence of taxation fall on one and the same
person e.g. personal income tax, capital gain tax, petroleum profit tax. Etc.
111 REGRESSIVE TAX
Tax is said to be regressive it takes a smaller part of
income as income increase. That is as income increases the rate of tale
decreases. For example. Mr. A earns N10, 000 and Mr. B earns N40, 000 per
annum. In a year. Mr. A pays N1, 00 as tax at a rate 10% while Mr. B pays N20
at a rate of 5%. This is a regressive situation.
IV INCOME TAX
This means a tax on income of a person or company or any
organization income.
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