ASSESSMENT OF TAX SYSTEM AND ITS EFFECTS ON THE PUBLIC SECTOR

ABSTRACT

The development of any nation depends on the amount of revenue generated by the government for the provision of infrastructural facilities. Taxation is the key to unlocking the resources required for public investment and infrastructure growth. Taxation and tax management is a stressful activity for everyone, especially for business owners and entrepreneurs. If you’re selling taxable goods or services in any state in Nigeria or you earn some income from working in the country, you almost always have tax obligations. This means you are legally required to collect, file and remit sales and use tax. Nigeria tax system has been in operation for a long time. It is the objective of this study to assess its effects on the public sector.

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgment

Abstract

Table of content

 CHAPETR ONE

1.0   INTRODUCTION

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study

CHAPETR TWO

2.0   LITERATURE REVIEW

CHAPETR THREE

3.0        Research methodology

3.1       sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1 Introductions

4.2 Data analysis

CHAPTER FIVE

5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation

Appendix

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Tax constitutes a system of raising money from corporate institutions and persons on behalf of the government for developmental programmes. Tax is a compulsory contribution imposed by government on eligible tax payers in the country to aid in the financing of government expenditures in the provision of essential services such as education, health services, road constructions, security, social payments etc.

Taxes are imposed for reason of regulating the production of certain goods and services, protection of infant or certain key industries, curbing inflation and meeting operational costs of governance. Taxes are also imposed to mitigate the consumption of certain undesirable goods and services, correct the country’s balance of payment and attract investors. Regulate certain economic activities; bridge the inequality gap between the rich and the poor.

Consequently in order to achieve these tax objectives, the government implement different types of tax system such as “Pay As You Earn, (PAYE), Value added tax (VAT), Excise duties etc .The research seek to proffer an assessment of Nigeria tax system and its effect on educations system of public sector.

1.2   Statement of the Problem

A fundamental functions of government is the responsibility to provide essential service and infrastructure for the wellbeing of the people such as the provision of education, health facility, security, good roads, quality education etc. Therefore to achieve this objective of government, it became necessary for government to impose taxes on eligible persons and institutions in the country to raise additional financing to meet these services.

Consequently government has always formulated various tax laws, policies and system to meet the challenges of raising additional revenue. They include: Income Tax Management Act (ITMA), Companies Income Tax Decree (CIID), Joint Tax Board (JIB) etc. as a measure of ensuring adherence to tax payment and discouraging tax evasion and avoidance. Therefore the problem confronting the research is to proffer an Assessment of Nigeria tax system and its effect on the public sector.

1.3   Objectives of the Study

To determine whether the Nigerian tax system has improved in its operation since adoption.

• To determine whether the Nigerian tax system significantly affect the Nigerian public sector.
• To ascertain the challenges incurred in the Nigerian tax system

1.4   Research Hypotheses

H0: The Nigerian tax system has not improved in its operation since adoption.

H0: The Nigerian tax system has not significantly affect the Nigerian public sector.

H0: The Nigerian tax system has not incurred challenges in its administration.

1.5   Significance of the Study

This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build on their research work. This study contributes to knowledge and could serve as a guide for other study.

1.6   Scope and Limitation of the Study

The study focuses on the assessment of Nigeria tax system and its effect on the public sector. However, the study was confronted by the following constraints;

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.7   Definition of Terms

TAX: A compulsory sum of money imposed by the government on its citizen for the provision of public goods and services.

TAX BASE: This is the object which is taxed for instance personal income, company profit.

TAX RATE: The rate at which tax is charged.

TAX INCIDENCE: It offers to the effect of and where the burden is finally rested.

1.8   Organization of the study

The study is divided into five chapters. Chapter one deals with the study’s introduction and gives a background to the study. Chapter two reviews related and relevant literature. The chapter three gives the research methodology while the chapter four gives the study’s analysis and interpretation of data. The study concludes with chapter five which deals on the summary, conclusion and recommendation.

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