TABLE OF CONTENTS Chapter one1.1 Back ground of the study. 1
Chapter Two
2.1 Concept of taxation 11
decentralization of office. 47
Chapter three
3.1 The population 48
Chapter Four
4.1 Analysis of data. 54
Chapter five
5.1 Summary of Results. 72
Bibliography. 80
CHAPTER ONE
The study of taxation is part of the study of public Finance which is concerned with revenue and expenditure of the government how they are receiving and disbursed and the effects of these operation on the economy since the power to tax is also the power to regulate the economy by the government it can therefore related it or stimulate it.
In modern times therefore, taxation has a dual purchase of:
It will be seen from the trend of events in Nigeria today that the revenue gotten from taxation is an immense benefit to the economic developemnt of Nigeria. If the country must develop, it must truly depend on it’s internally generated revenue rather than on external sources especially now that the country is too much in debt.
Revenue from taxation forms the second largest source of fund to the state governments apart from statutory allocation from the Federal government. The methods of realized these revenue must therefore be convenient, economic, equal and certain to the tax payer. The revenue derived must be used Judiciously so that the tax payer wills see what is been done with their money and the willingness to pay any other time will be there, thereby reducing the incidence of tax evasion.
It is in the light of this that it is deemed fit to find out whatever the reasons or objectives of taxation, the characteristics of a good tax system and its effect on a depressed economy like Nigeria. Also we want to look at the reasons behind economic depression, the effects on investments and what is required of the individual, companies and government can do to remove or reduce the adverse effects and improve the situation as soon as possible.
These and other topical issues, this research work intend to find out and at the end make possible suggestions for the government who is solely in charge of taxation.
The purpose and objectives of the study is primarily to find out the effects of taxation on the individual, companies and governments during economic depression.
Tax policies are not only monetary but it contains other things like emotions the reasoning and the economic behaviour of the tax payer and the community. It can trend or stimulate the economy we now want to look at the ways by which we generate more revenue to the state and enhance their revenue choices. Also, possible ways of making the self employed to pay a commensurate tax according to their income will be suggested.
Any social research necessarily attracts board coverage and so it is important to delimit the work to enhance in-depth analysis. For this reasons, this research is concerned mainly about the effects of taxation with reference to a depressed economy on the taxpayer, i.e individual companies and the government. Therefore in the Investigation we are mainly concerned (SBIR) and the state office of statistic Enugu state.
In the course of understanding this work, the researcher encountered a number of problems first was the problem of non co-operation from most official of the board because of the sensitive nature of the topic, some of the personnel contacted for interview did not co-operation and those who agreed did so regularly and not giving full details.
Another problem encountered was the difficulty in getting access to official documents and up to date records. other constraint was time data collections cost and analysis , also since the main instrument for this research work is questionnaire and no matter how it is developed, it is subject to the bias of individual respondents.
1.5 STATEMENT OF THE PROBLEM
As stated earlier since the power to tax is the power to regulate the economic activities by the government either retard or stimulate it , however, the objectives of every
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