TAX ADMINISTRATION AND REVENUE GENERATION IN EDO STATE
ABSTRACT
Taxation plays a crucial role in promoting economic activity and growth. A critical challenge before tax administration in the 21st century Nigeria is to advance the frontiers of professionalism. The study is to examine the need for tax-payers’ enlightenment, verifying if there is a relationship between tax administration and economy development.
In an attempt to do this, a field survey was conducted among two hundred and seven(207) Edo State Board of Internal Revenue employees and businesses located around Egor Local Government Area in Edo and questionnaires were used to analyze the data and the hypotheses were tested using the Chi Square (x2).
The study revealed that: there is a relationship between tax enlightenment, economy development and tax administration in Edo State; and some of the challenges of tax administrators in Edo State are: low wages and salaries received by tax administrators, inadequate staff and working facilities and the method of keeping records and assessing tax rate.
It was in this view that the study recommended that: the tax administrators should create an enlightenment programme for tax payers, salaries paid to the tax administrator should be reviewed, the number of staff administrators sent to the field should be increased and the quality of materials used in keeping records and assessing tax rate should be modernized.   
TABLE OF CONTENT
Pages
Chapter One: Introduction
1.1 Background of the study    -    -    -    -    -     -
1.2 Statement of the Problem    -    -    -    -    -    
1.3 Research Questions    -    -    -    -    -    -    -
1.4 Objective of the Study    -    -    -    -    -    -    -
1.5 Research Hypotheses    -    -    -    -    -    -    
1.6 Scope of the Study    -    -    -    -    -    -    
1.7 Significance of the Study    -    -    -    -    -    
1.8 Plans for the Study    -    -    -    -    -    -    
Chapter Two: Review of Related Literature
2.1 Introduction    -    -    -    -    -    -    -    -
 Conceptual Review    -    --    -    -    --    -    
2.3 Theoretical Framework    -    -    -    -    -    
2.4 Empirical Literature    -    -    -    -    -    -    
Chapter Three: Methodology
3.1 Introduction    -    -    -    -    -    -    -    -    
3.2 Study Design    -    -    -    -    -    -    -    -    
3.3 Population of the Study    -    -    -    -    -    
3.4 Sampling Techniques    -    -    -    -    -    -    
3.5 Sample Size    -    -    -    -    -    -    -    -    
3.6 Instrument of Data Collection    -    -    -    -    
3.7 Method of Data Collection    -    -    -    -    -    
3.8 Method of Data Analysis    -    -    -    -    -    
Chapter Four:
DATA PRESENTATION AND ANALYSIS
4.1 Introduction    -    -    -    -    -    -    -    -    
4.2 Social Demographic Characteristics of Respondent    -
4.3 Data Presentation and Analysis    -    -    -    -    
4.4 Hypothesis Testing    -    -    -    -    -    -    
4.5 Discussion of Results    -    -    -    -    -    -    
Chapter Five: SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATIONS
5.1 Summary of Findings    -    -    -    -    -    -    
5.2 Conclusion    -    -    -    -    -    -    -    -    
5.3 Recommendations    -    -    -    -    -    -    -    
    Bibliography    -    -    -    -    -    -    -    -    
    Appendix    -    -    -    -    -    -    -    -        
CHAPTER ONE
INTRODUCTION
1.1    BACKGOUND OF THE STUDY
Taxation plays a crucial role in promoting economic activity and growth. Through taxation, government ensures that resources are channeled towards important projects in the society, while giving succor to the weak. Unfortunately, in today’s Nigeria, the economic development is nothing to write home about. The role of taxation in promoting economic activity and growth is not felt primarily because of its poor administration. According to Olashore (1999), the economy has remained in a deep slumber: all macroeconomic indicators show an economy in dire need of rejuvenation, reflection and indeed radical reform. Also in the view of Oni (1998), tax administration needs to be revamped while refunds of taxes as well as duty drawbacks administration are inefficient.
A critical challenge before tax administration in the 21st century Nigeria is to advance the frontiers of professionalism, accountability and awareness of the general public on the imperatives and benefits of taxation in our personal and business lives which include: promoting economic activity, facilitating savings and investment, and generating strategic competitive advantage. If tax administration does not for any reason meet the above challenged, then there is a desperate need for reform in the area of tax regime we run, and in the administration of taxes.
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 absence of recognized central authority, resistance of this form of direct taxation in such that it result 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 later 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 state of the federation.
1.2    SATEMENT OF THE PROBLEM
Identifying critical tax administration challenges in Nigeria and measures required to meet challenges will not only guarantee improved revenue base for the country but also position the country properly to take full advantaged offered by the new millennium. This research work shall examine the need for tax-payers’ enlightenment by verifying if there is a relationship between tax administration and Nigeria economy and thereby revealing the critical challenges that need be tackled.
1.3    RESERARCH QUESTIONS
This study addressed the following questions:
i.    Is there a relationship between taxpayers’ enlightenment on the importance of taxation and tax administration in Nigeria?
ii.    Is there a relationship between tax administration and Nigeria economy?
iii.    What are the challenges of tax administration in Nigeria?
1.4    OBJECTIVES OF THE STUDY
In order to articulate the problem further, the following objectives were formulated to guide the study:
i.To examine the relationship that exists between taxpayers’ enlightenment on the importance of taxation and tax administration in Edo State.
ii. To investigate the relationship that exists between tax administration and Nigeria economy.
iii. To study the challenges of tax administration in Nigeria.
1.5 RESEARCH HYPOTHESES
The research hypotheses are stated in the null form as follows:
i. There is no relationship between taxpayers’ enlightenment on the importance of taxation and tax administration in Nigeria.
ii. There is no relationship between tax administration and Nigerian economy.
iii. There is no challenges of tax administration in Nigeria.
1.6 SCOPE OF THE STUDY
For the purpose of this study, Edo State Board of Internal Revenue and businesses located around Egor Local Government Area in Edo State of Nigeria will be considered. Edo State was chosen because of the campaign for tax payment by the State Government and this provided the basis for the study of tax administration in Nigeria.
1.7 SIGNIFICANCE OF THE STUDY
The research is motivated to study the ways through which internally generated revenue in Nigeria states could be enhanced.
The information contained here will benefit the society at large as it will expose the society to the need to pay tax and consequences of failure to pay tax.
The study will no doubt charge the aggressive attitude of an average Nigerian towards the payment of tax and collectors of taxes who were hitherto regarded as enemies.
Owing to the present steps taking by federal government in re-branding the economic activities, the research work will recommend measure that will be taken by the state Board of internal revenue, federal inland revenue service, budget and planning department and other government decision making bodies ways to enhance effective administration of her services and achieve immensely her stated objectives, especially in the area of tax administration on revenue generation.
The study will also unleash problems affecting tax effectiveness, which if appropriate corrective measures taken will go a long way in improving the state internally generated revenue machineries of the government.
1.8 PLAN OF THE STUDY
The study commenced by providing a background of the subject matter justifying the need for the study in chapter one. Chapter two shall present related literature concerning tax administration and revenue generation. The methodology for the study will be outlined in chapter three, while chapter four focuses on data presentation and analysis. Concluding remarks in chapter five shall reflects on the summary and recommendation based on the findings of the study.