AN APPRAISAL OF TAX ASSESSMENT AND COLLE

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AN APPRAISAL OF TAX ASSESSMENT AND COLLECTION IN BAYELSA STATE

(A CASE STUDY OF BAYELSA STATE BOARD OF INTERNAL REVENUE)

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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.

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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 1st_{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.

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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.

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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,

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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.

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