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Effects Of Information Technology On The Efficiency Of Tax Administration In Nigeria
[A CASE STUDY OF ENUGU STATE BOARD OF INTERNAL REVENUE]
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CHAPTER ONE
INTRODUCTION
1.1 Background Of The Study
Taxation is one of the oldest and major sources of government revenue. The history of taxation in Nigeria dates back to the pre-colonial era. During this period, there were different systems of taxation existing in the forms of compulsory services, contribution of goods, money, labour and the likes, among the various kingdoms and ethnic groups and tribes controlled by the Obas, Emirs etc., in order to sustain the Monarch and also for community development (ICAN,2010)
Taxation, as we know it today, was first introduced in Nigeria in 1904 by the late Lord Lugard, when community tax became operative in the Northern Nigeria. He later made changes which culminated in the Native Revenue Ordinance of 1917. An amending ordinance that extended the provisions of the 1917 ordinance to Southern Nigeria was passed in 1918. The first ordinance applied to Abeokuta in Western Nigeria and to Benin-city in Mid-Western and in 1928, it was extended to Eastern Nigeria.
Taxation in Nigeria, in a modern sense, however, only began in 1940. A more progressive income tax Ordinance No.29 of 1943 Cap92, under which Europeans all over the country and Africans resident in Lagos were assessed, came into operation on the 1st of April, 1943.
The Commissioner, appointed by the Governor-General by notice in the Gazette (now referred to as the Federal Republic of Nigeria Gazette), was responsible for the administration of the ordinance. By the 1st Schedule, Ordinance 39/58, it was the Federal Board of Inland Revenue that took the place of the Commissioner (Ola, 1974).
In recent times, tax administration in Nigeria is vested in various tax authorities depending on the type of tax under consideration. Broadly, there are three (3) tax authorities, namely;
i. Federal Inland Revenue Service Board
ii. State Internal Revenue Service Board
iii. The Local Government Authorities
However, the organs of the Nigerian Tax Administration are listed below;
i. Federal Inland Revenue Service Board
ii. State Internal Revenue Service Board
iii. Joint Tax Board
iv Local Government Revenue Committee
v. Joint State Revenue Committee. (ICAN, 2010)
The enabling laws in respect of each type of tax will normally contain a provision as to the body charged with the administration of the tax. For this purpose, the various enabling tax laws are as follows;
i. Company Income Tax Act, Cap C21, LFN 2004, as amended, which imposes tax on the incomes of companies other than corporation soles and companies engaged in petroleum operations Upstream operations)
ii. Petroleum Profits Tax Act, Cap P13 LFN 2004, which imposes tax on the profits of companies, engaged in petroleum operations.
iii. Education Tax Act, Cap E4 LFN 2004, which imposes Education tax on the assessable profits of companies registered in Nigeria.
iv. Personal Income Tax Act, Cap P8 LFN 2004, as amended, which imposes tax on incomes of individuals and corporation soles.
v. Value Added Tax Act, Cap V1 LFN 2004, as amended, which imposes tax on the supply of goods and services (except those specifically exempted or zero-rated), made by incorporated companies and other business organizations.
vi. Stamp Duties Act, Cap S8 LFN 2004, which charges duties on specified instruments listed in the Act.
vii. Capital Gains Tax Act, Cap C1 LFN 2004, which imposes tax on capital gains arising from the disposal of chargeable assets (ICAN, 2006)
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTThis research study examines the Effect of Information Technology on the Efficiency of Tax Administration in Nigeria, a case Study of Enugu State Board of Internal Revenue. Its main objective is to find out whether the application of Information Technology increases efficiency on tax administration. For the purpose of this study, the researcher adopted the method of survey Research Design. Data used in this research were gotten from both primary and secondary sources including questionna ... Continue reading---
