AN APPRAISAL OF TAX ASSESSMENT AND COLLE
AN APPRAISAL OF TAX ASSESSMENT AND COLLECTION IN
BAYELSA STATE
(A CASE STUDY OF BAYELSA STATE BOARD OF INTERNAL
REVENUE)
,
ABSTRACT
This study is carried out, to know the appraisal of tax assessment
and collection in Bayelsa state. Books of various scholars were consulted
and several works during the process of the research work. In the course
of searching and confirming the concepts and assumptions, the
administration questionnaires to various group of persons such as the
senior and middle level of staff in Bayelsa state board of internal revenue
was carried out to ample their opinions. The need for a study on tax
assessment and collection in Bayelsa state has been generally felt
because of the absence of social amenities and lack of infrastructural
development in the state. Some of the problem encountered by the board
of internal revenue include the determination of taxable age, absence of
hotel accommodation in the winter land, lack of officials means of transport
etc. In course of this research work, it was observed that individuals do not
pay their taxes because they felt that they are been disappointed by the
government in time past as the government did not make proper use of the
taxes paid in time past. It is therefore, left for the state government to
create more awareness about the benefit attached with tax payment and
also utilize the money properly.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
This project work is concerned with the difficulties associated with tax
assessment and collection in Bayelsa state of Nigeria.
Taxation has to do with government of all tires. Taxation is considered
to be the bed rock of social development in Nigeria in every state.
The tax payer’s money is the bed rock of holistic development in the
society. The government collects taxes mainly for the provision of amenities
which include the provision of electricity, road and other infrastructural
1
development. There are basically two main types of taxes which are, direct
and indirect.
Direct tax is a tax levied directly on the income of individual and
business firms. It includes personal income tax which is the income of an
individual after allowance have been made. Others include company
income tax, education tax e.t.c.
The second type is the indirect tax. Where indirect tax is a tax levied
upon a person, who as for as possible shift to their economic units. Indirect
tax include sales tax, custom duties, value added tax excise duties.
The Board of internal revenue usually collect their taxes by a way,
first announcement will be made through the media informing individual to
come and pay their taxes to the tax officials. After which the officials will
now move from house to house to give a demand notice to the individuals
and also indicate the amount to be paid and when to pay it.
The incidence of taxation is the manner in which something falls upon
someone or affect something. The incidence of a tax lies on a person on
whom it rests after further shifting, becomes impossible, i.e its final resting
place.
Bayelsa State was created on the October 1 st 1996 under the then
military regime of Late Sani Abacha. It is among one of the state in south –
south geo-political zone .
Also among one of the Nigeria Delta state and richly endowed with
crude oil.
This project work is an attempt to remove the condition of taxation or
tax collection and the findings would help society and future academic
works.
1.2 Statement of the problem
The problems encountered in this project is in two different phase.
There is the problems encountered by the citizens and also the one
encountered by the state government. The problem felt by the tax payers
includes.
The disappointing performances of government in the execution of
social projects and the mismanagement of public funds, low level of income
and excessive taxation.
2
While the problems encountered or felt by the state government
include indiscipline and corruption on the part of the tax officials in the
adequate staff to enforce tax laws e.t.c.
1.3 Objectives of the study
These are some of the objectives of this study.
1. To know the various methods used by Board of the internal Revue to
collect taxes from the citizens.
2. To assess the level of tax performance with in the state
3.
To know the problems faced by the tax officials.
4.
To enlighten the people about the benefit of the taxation.
1.4 Research Questions
The following are some of the research questions examined in this
study
1. By what method does the revenue board collect tax from tax payers
2. How does the board of internal revenue fight the problem of tax
evasion in the state?
3. How does the board of internal revenue assess the taxable income
of the owners of small stores and hotels?
4. Are plumbers, electricians, masons and big time farmers who are not
civil servants also assessed to pay tax?
1.5 Significance of the study
This study is intended to bring to light the multiple problems,
affecting and confronting the board of internal revenue in their tax
assessment and collection.
This study also sets out to suggest ways and means of forstalling
tax evasion as in the state. Through this study, the board of the internal
revenue will be able to assess certain individuals it hitherto could not
assess, such individuals include fishermen, mason, farmers, electricians,
planers and some others who make a lot of money from their trade.
This study is also significant on account of the fact that the result of
this study is bound to improve internal revenue generation in Bayelsa
State. This study will also serve as a source of the secondary data for
further research work.
1.6 Scope of the study
During the process of the research the researcher encountered
some problems especially in obtaining comprehensive data from tax
3
officials. officials were not responding to personal interviews lightly for fear
of being implicated.
The assessment and collection unit is exclusively meant for tax
officials and every document used for such assessment were not allowed
to be given out.
1.7 Limitation of the study
In course of the caring out this research work, there are some certain
circumstance that makes the researcher to be unable to carry out the work
as was expected. Moreover, financial constraints on the part of the
researcher to get more tax officers posed a serious problem to the
completion of the research work.
The research is to a large extent restricted or limited to revenue and
fundamentally the boards assessment and collection of tax within the
confines of the state.
The analysis was made based on the information obtained from the
questionnaire distributed to the boards of internal revenue in Yenagoa as
well as information obtained based on personal interview. Point of
reference will for this reason be within the limits of Bayelsa State of
Nigeria.
1.8 Definition of the terms
The following terms used in this research study are defined as
followings:
1. Appraisal: this is the acts of assessing the worth quality, or
condition of anything
2. Assess: this is to estimate officially the value of property, income
etc as a basis for taxation
3. Tax: is a compulsory levy imposed by a public authority on the
income, profit or wealth of an individual, family, community,
corporate or unincorporated body for the public purpose.
4. Taxation: this is the act of taxing, it is seen as compulsory transfer
or payment of money ( or occasionally of goods and services )
from private individuals, institution or groups to the government .
5. Revenue: the income of the government generated from taxation,
exercised duties, customs or other sources.
4
6. Evasion: is the failure to disclose the correct income that should
accessed either by misstatement or facts, of incorrect returns or by
misrepresentation of tax liabilities.
Some of the problem encountered by the board of internal revenue include
the determination of taxable age, absence of hotel accommodation in the
winter land, lack of officials means of transport etc. In course of this
research work, it was observed that individuals do not pay their taxes
because they felt that they are been disappointed by the government in
time past as the government did not make proper use of the taxes paid in
time past. It is therefore, left for the state government to create more
awareness about the benefit attached with tax payment and also utilize the
money properly.
FOR THE COMPLETE MATERIALS PLEASE CONTACT ME ON:
07065249143, 08181827646 or you can send me an
E-Mail Via: [email protected]. Cost of Materials is N
3,000
Payments should be made to the following Banks listed below;
ACCOUNT NAME:
ACCT NO:
BANK:
ODEMUDO EDWARD OHWOTU
3056748577
FIRST BANK PLC
ACCOUNT NAME: ODEMUDO EDWARD OHWOTU
ACCT NO:
0222299605
BANK:
G.T BANK
ACCOUNT NAME: ODEMUDO EDWARD OHWOTU
ACCT NO:
0026933746
BANK:
UNITY BANK
5
BAYELSA STATE
(A CASE STUDY OF BAYELSA STATE BOARD OF INTERNAL
REVENUE)
,
ABSTRACT
This study is carried out, to know the appraisal of tax assessment
and collection in Bayelsa state. Books of various scholars were consulted
and several works during the process of the research work. In the course
of searching and confirming the concepts and assumptions, the
administration questionnaires to various group of persons such as the
senior and middle level of staff in Bayelsa state board of internal revenue
was carried out to ample their opinions. The need for a study on tax
assessment and collection in Bayelsa state has been generally felt
because of the absence of social amenities and lack of infrastructural
development in the state. Some of the problem encountered by the board
of internal revenue include the determination of taxable age, absence of
hotel accommodation in the winter land, lack of officials means of transport
etc. In course of this research work, it was observed that individuals do not
pay their taxes because they felt that they are been disappointed by the
government in time past as the government did not make proper use of the
taxes paid in time past. It is therefore, left for the state government to
create more awareness about the benefit attached with tax payment and
also utilize the money properly.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
This project work is concerned with the difficulties associated with tax
assessment and collection in Bayelsa state of Nigeria.
Taxation has to do with government of all tires. Taxation is considered
to be the bed rock of social development in Nigeria in every state.
The tax payer’s money is the bed rock of holistic development in the
society. The government collects taxes mainly for the provision of amenities
which include the provision of electricity, road and other infrastructural
1
development. There are basically two main types of taxes which are, direct
and indirect.
Direct tax is a tax levied directly on the income of individual and
business firms. It includes personal income tax which is the income of an
individual after allowance have been made. Others include company
income tax, education tax e.t.c.
The second type is the indirect tax. Where indirect tax is a tax levied
upon a person, who as for as possible shift to their economic units. Indirect
tax include sales tax, custom duties, value added tax excise duties.
The Board of internal revenue usually collect their taxes by a way,
first announcement will be made through the media informing individual to
come and pay their taxes to the tax officials. After which the officials will
now move from house to house to give a demand notice to the individuals
and also indicate the amount to be paid and when to pay it.
The incidence of taxation is the manner in which something falls upon
someone or affect something. The incidence of a tax lies on a person on
whom it rests after further shifting, becomes impossible, i.e its final resting
place.
Bayelsa State was created on the October 1 st 1996 under the then
military regime of Late Sani Abacha. It is among one of the state in south –
south geo-political zone .
Also among one of the Nigeria Delta state and richly endowed with
crude oil.
This project work is an attempt to remove the condition of taxation or
tax collection and the findings would help society and future academic
works.
1.2 Statement of the problem
The problems encountered in this project is in two different phase.
There is the problems encountered by the citizens and also the one
encountered by the state government. The problem felt by the tax payers
includes.
The disappointing performances of government in the execution of
social projects and the mismanagement of public funds, low level of income
and excessive taxation.
2
While the problems encountered or felt by the state government
include indiscipline and corruption on the part of the tax officials in the
adequate staff to enforce tax laws e.t.c.
1.3 Objectives of the study
These are some of the objectives of this study.
1. To know the various methods used by Board of the internal Revue to
collect taxes from the citizens.
2. To assess the level of tax performance with in the state
3.
To know the problems faced by the tax officials.
4.
To enlighten the people about the benefit of the taxation.
1.4 Research Questions
The following are some of the research questions examined in this
study
1. By what method does the revenue board collect tax from tax payers
2. How does the board of internal revenue fight the problem of tax
evasion in the state?
3. How does the board of internal revenue assess the taxable income
of the owners of small stores and hotels?
4. Are plumbers, electricians, masons and big time farmers who are not
civil servants also assessed to pay tax?
1.5 Significance of the study
This study is intended to bring to light the multiple problems,
affecting and confronting the board of internal revenue in their tax
assessment and collection.
This study also sets out to suggest ways and means of forstalling
tax evasion as in the state. Through this study, the board of the internal
revenue will be able to assess certain individuals it hitherto could not
assess, such individuals include fishermen, mason, farmers, electricians,
planers and some others who make a lot of money from their trade.
This study is also significant on account of the fact that the result of
this study is bound to improve internal revenue generation in Bayelsa
State. This study will also serve as a source of the secondary data for
further research work.
1.6 Scope of the study
During the process of the research the researcher encountered
some problems especially in obtaining comprehensive data from tax
3
officials. officials were not responding to personal interviews lightly for fear
of being implicated.
The assessment and collection unit is exclusively meant for tax
officials and every document used for such assessment were not allowed
to be given out.
1.7 Limitation of the study
In course of the caring out this research work, there are some certain
circumstance that makes the researcher to be unable to carry out the work
as was expected. Moreover, financial constraints on the part of the
researcher to get more tax officers posed a serious problem to the
completion of the research work.
The research is to a large extent restricted or limited to revenue and
fundamentally the boards assessment and collection of tax within the
confines of the state.
The analysis was made based on the information obtained from the
questionnaire distributed to the boards of internal revenue in Yenagoa as
well as information obtained based on personal interview. Point of
reference will for this reason be within the limits of Bayelsa State of
Nigeria.
1.8 Definition of the terms
The following terms used in this research study are defined as
followings:
1. Appraisal: this is the acts of assessing the worth quality, or
condition of anything
2. Assess: this is to estimate officially the value of property, income
etc as a basis for taxation
3. Tax: is a compulsory levy imposed by a public authority on the
income, profit or wealth of an individual, family, community,
corporate or unincorporated body for the public purpose.
4. Taxation: this is the act of taxing, it is seen as compulsory transfer
or payment of money ( or occasionally of goods and services )
from private individuals, institution or groups to the government .
5. Revenue: the income of the government generated from taxation,
exercised duties, customs or other sources.
4
6. Evasion: is the failure to disclose the correct income that should
accessed either by misstatement or facts, of incorrect returns or by
misrepresentation of tax liabilities.
Some of the problem encountered by the board of internal revenue include
the determination of taxable age, absence of hotel accommodation in the
winter land, lack of officials means of transport etc. In course of this
research work, it was observed that individuals do not pay their taxes
because they felt that they are been disappointed by the government in
time past as the government did not make proper use of the taxes paid in
time past. It is therefore, left for the state government to create more
awareness about the benefit attached with tax payment and also utilize the
money properly.
FOR THE COMPLETE MATERIALS PLEASE CONTACT ME ON:
07065249143, 08181827646 or you can send me an
E-Mail Via: [email protected]. Cost of Materials is N
3,000
Payments should be made to the following Banks listed below;
ACCOUNT NAME:
ACCT NO:
BANK:
ODEMUDO EDWARD OHWOTU
3056748577
FIRST BANK PLC
ACCOUNT NAME: ODEMUDO EDWARD OHWOTU
ACCT NO:
0222299605
BANK:
G.T BANK
ACCOUNT NAME: ODEMUDO EDWARD OHWOTU
ACCT NO:
0026933746
BANK:
UNITY BANK
5