ABSTRACT
This project work is carried out on problem of personal income tax generation and administration taxation can be simply defined as a compulsory contribution by individuals and organizations to a statutory Authority. The merits of taxations are numerous for instance, it could be used for re-distribution of income or for stabilizing the economy.
In the recent past and till date it has not been easy to fully realized the objectives of taxation owing to the existence of inefficiency and ineffectiveness in the system of administration and collection of personal income tax in Enugu state. This project problems of personal income tax Generation and Administration in Enugu State. (A case study of internal Revenue Enugu – North) will highlight those problem militating against the attainment of the objective of taxation.
In carrying out this research work, questionnaires bad been used to collect data and simple percentage analysis was used to analyse the data collected.
Also this research work enabled me to observed whether inhabitants of Enugu North Local Government Area indulge so much in tax avoidance and tax evasion because they have not been sufficiently enlightened on the important and merits of taxation.
Finally the research work carried out helped the researcher to know if there is enough personnel needed for effective tax collection and administration. The limitation of this study is monetary problem and time, there will be scarcity of accurate national statistics.
CHAPTER ONEINTRODUCTION
1.1 BACKGROUND OF STUDY
In all generation, the problems of personal income tax generation and administration continues to surface in one form or another in virtually every society, especially in this part of the world. It is important to point out that the federal government has taken adequate steps to wards effective tax administration.
This failure on the part of the federal government is responsible for poor financial positions of both the state and local government. Besides, this inadequate planning and absolute laws governing taxation, evaluation and collection is characterized by chaos.
This chaotic nature of the system can be appreciated by political influence or interferences in the process of taxation during the civilian administration in the country which gave rise to untrained and inexperienced personal being entrusted with the work of collection and administration of personal income tax.
The important of these issues to tax administration in the developing countries like. Nigeria, can be seen from the following extract fromtax administration in under developed countries. The tax administration finds himself working with a staff which is inefficient in experienced, and poorly paid.
1.2 BOARD OF INTERNAL REVENUE ENUGU
The board of internal revenue Enugu was established to administer income tax in Enugu state just as there are in other states of the federation.
Income tax was first introduced in Nigeria in 1904 by late Lord Lugard. The introduction of Native Revenue ordinance of 1927 was most difficult in the Eastern areas of the country, due mainly to abserice of recognized central Authority Resistance to this form of direct taxation in such that it leaf to riots notably in calabar, Owerri and the famous, Aba women Riot of 1929 which was so severe that it attracted a probe. Beside, the Native Revenue ordinance were also Native direct taxation ordinance for the colony and the Native income tax ordinance.
These ordinance were late modified and incorporated into the Direct taxation ordinance No 29 of 1940, cap 54 and the income tax ordinance No 29 of 1943 respectively.
The direct taxation ordinance 1940 empowered native authorities to tax Africans in their areas of jurisdiction while the income tax ordinance 1943 was for the taxation of non-Africans in companies. The two ordinances were the foundation of our modern taxation which necessitated establishment of board of internal revenue in each of the states of the federation which Enugu Board of internal Revenue is on of them.
