THE PROBLEMS FACING PERSONAL INCOME, THE ADMINISTRATION IN RURAL COMMUNITIES..
ABSTRACT
Personal income tax is extremely important to the government, both as a revenue source and as a fiscal policy component. However, the income tax administration concepts have remained obscured by uncertainty, conflicts, and ambiguities. As a result, I began this effort in order to attempt a succinct clarification and de-mystification of income taxation, particularly in Nigeria’s rural areas.
To accomplish this goal, I’ve structured this project report into five (5) chapters, each dealing with a different part of the job and assisting in the identification of rudiments that, when combined, get to the heart of the inquiry.
The first chapter of the report covers the backdrop to the investigation, the statement of difficulties, the goal of the study, the scope of the study, the research question, the statement of hypothesis, and the importance of the study.
The second chapter examines the existing research on personal income tax in Nigeria, with a focus on rural areas. In this segment, I discussed expert and other interested writers’ ideas, opinions, and statements on taxation and pertinent income tax legislation.
The research design and technique are discussed in Chapter 3.
The presentation and analysis of data acquired from primary and secondary sources is covered in Chapter 4.
The findings and recommendations are presented in Chapter 5.
The researcher hopes that by implementing the recommendations, the effectiveness and efficiency of personal income tax administration in the Ugwuaji community in particular and Enugu state in general will be greatly improved.
CHAPTER ONE 1.0 INTRODUCTION 1.1 STUDY BACKGROUND
Tax collectors have long been the most prevalent nemesis of rural residents of all races and cultures. They were considered sinners in the Bible simply because of their freely chosen and legally acknowledged occupation. Dining with tax collectors was extremely distasteful in biblical times because it meant polluting oneself. Consider the level of animosity.
The same picture of animosity towards tax (tribute) collectors and their servants may be found throughout history. The history of empires such as the old Roman empire, the British empire, the Western Sudanese empires, and the Hausa states, to name a few, has been preserved. All of these tributes have one thing in common: their gathering sparked a lot of debate.
It should be remembered that one of the most notable operations of the colonial government in Nigeria was the imposition and payment of taxes. The British were able to impose taxes on citizens who saw them as unjustified exhortation and exploitation using several means.
Since independence, regime after regime has confronted the problem of citizen resistance to tax payment, who, like their colonial generation, consider tax payment as a pointless expense, a disagreeable exercise, an avoidable loss, a legalized exhortation, and punitive measures by a hungry government. Even the fast advancement of education has had little impact. The unfavorable attitude regarding paying taxes.
If the educated elites, or more properly, the enlightened populace of the urban or civilized area, consider taxes to be unpleasant, those in rural communities consider them to be taboo for obvious reasons.
To comprehend the level of animosity between the two parties, one must have observed a confrontation between tax collectors and locals. At fact, according to legend, a tax collector was slain during one such raid; occurrences of this sort occurring during tax raids in village markets and squares are not uncommon in rural areas.
According to studies, governments do not simply levy taxes without taking into account some fundamental principles. It is also well known that tax revenue is not just thrown in the trash or stored in a warehouse. In fact, a suitable government agency explains from time to time the purposes for which tax proceeds are used, among other things.
Despite the stance mentioned in the preceding paragraph, tax collections have continued to fall short of forecasts. The screams of the taxpaying public have not subsided. What a thorn in my side. Tax-related legislation, tribunals, and task committees have failed to produce the expected effects.
As a result, the following questions spring to mind:
i. Is every piece of legislation connected to tax administration erroneous from the start?
ii. Are the tax laws being applied incorrectly?
iii. What factors contribute to citizens’ negative attitudes regarding taxes, particularly in rural areas?
iv. Are there any solutions to the problems?
v. Is there a breakdown in communication between the government and taxpayers?
Expanding on the preceding topics in respect to the rural community under investigation, the following questions arise:
a. Do the Acts/Decrees take into account the circumstances of rural inhabitants in relation to assessable income of self-employed people?
In other words, what are the parameters for calculating the self-assessable employer’s income?
b. Is the resulting income tax that people must pay too high or too low?
c. Do the collections’ acts or inactions add to the public’s bad perception regarding tax payment?
To put it another way, are tax agents and collectors suspected of being dishonest in their work?
b. Do rural residents understand the need of paying taxes?
b. Does politics have an impact on tax payments? If so, how?
f. Have there been any changes in the procedures or strategies used over time, and what effect do both methods have on the tax payment proceeds?
Tax administration must be efficient and successful since the revenue generated from this source is critical to the government’s survival and growth. The financial commitment of the lower ties has continued to expand in a federal system like Nigeria, especially with the continuing formation of states and local government councils.
To keep up with rising spending, some states have enacted taxes like as the radio levy, development levy, education and technology levy, fund levy, and survival levy, among others, to assist the government in implementing some of its programs. There appears to be a great deal of focus on what new levy/tax to add, with far less emphasis paid to improving the performance of existing sources, particularly income tax.
However, income tax is unique as a source of revenue for the government since, in addition to providing revenue, it also helps to fulfill other social, economic, and political goals. Because of the numerous purposes of tax policy, no amount of effort is too much to dedicate to ensuring efficient tax administration.
A careful administration of our tax policy would eventually diminish, if not eliminate, the imposition of so many charges in the name of raising money.
A serious study project can address the above and many other questions. As a result, the topic “Impact of income tax administration in the Ugwuaji community” was chosen.
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THE PROBLEMS FACING PERSONAL INCOME, THE ADMINISTRATION IN RURAL COMMUNITIES..
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