ABSTRACT
A
tax is a compulsory levy imposed on the income or profit of an individual,
partnership and corporate organisations for the financing of government
expenditure without recourse to a corresponding benefit from tax payer.
Assessments are raised on total profit at the rate of either 30 percent or 20
percent if it is a small company whose turnover is below ₦1million naira. Various types of assessment s are
raised on the company. This could be self- assessment, government assessment,
back year assessment, best of judgement (BOJ) assessment or jeopardy
assessment. Collection is basic necessity to tax revenue after assessment has
been raised. This research work is aimed at appraising the tax collection
system in Nigeria taking Federal Inland Revenue Service as a case study. It
examined the workings both at the local and state levels but focused more on
the Federal Inland Revenue Services. It reviewed the old system, the reasons why
a new idea muffed. The operations of the new method were also explained and
clearly stated. The methodology adopted in this study is the survey research
design. There were interactions with staff of Federal Inland Revenue Service of
various cadres and a few tax payers and tax consultants with structured
questionnaire to know their opinion. 56 questionnaires were administered out of
which 35 were duly completed and returned. The findings from research work
revealed that appraisal of tax collection system will bring more money to the
coffer of the government and all incidents of frauds, cheque diversion and
other malpractices will be curbed.
Based
on the findings of this study, recommendations made are that constant
monitoring of the activities of the designated banks is necessary to determine
their level of compliance while adequate training should be provided for
collection staff to enhance their efficiency and productivity.
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
A tax is a
compulsory levy imposed on the income/profits of an individual, partnership and
corporate organizations for the financing of government expenditure without
recourse to a corresponding benefit from tax payer.
Every tax imposed on Nigerian companies or organisations needs continual
interpretation of its specific application and effect
on the
various transaction of the organisation. The field of taxation changes every
moment or every day as announced by the new ruling courts and also as are being
made by new government.
Where in any of the basis period for the year of assessment in which a
company commenced business and the next following four years of assessment as
determined under the provision of section 29 of the Act, a Nigerian company
engaged in manufacturing or agricultural production, mining of solid minerals
or wholly export trade, earns a total gross sales (turnover) of below one
million naira, there shall be levied and paid by the company, tax at the rate
of twenty kobo on every naira of the total profits.
Section 28A of Companies Income Tax Act 2007 states that where in any
year of assessment the ascertainment of total assessable profits from all
sources of a company results in a loss or where a company’s ascertained total
profits results in no tax payable or tax payable which is less than the minimum
tax then shall be levied and paid by the company the minimum tax as prescribed
in subsection (2) of the Act....
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Item Type: Project Material | Attribute: 113 pages | Chapters: 1-5
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