The relevance of tax collection

The imposition of tax leads to diversion of resources from the taxed to the non-taxed sector. The actual cost of the Stamp Act was relatively small. Tax is only collected from them when they need some government benefits like contracts, lead acquisition or registration of land of school children because they are required to present tax clearance certificates.

The relevance of tax collection The tax paid are collected and pat of it are used by the government in settling of public debt. Taxes are used in the provision of infrastructural facilities in the following areas: There are a lot of potentials in the use of income tax as a revenue source for economic development and as a fiscal tool.

Thus, direct taxes must be income elastic in character. Bendel state has not enacted any income tax ordinance of her own but has instead adopted western state income tax law no. Fowler, LIRS Chief Executive, attributes the spike in the number taxpayers to the benefits the paying public has seen its taxes deliver.

In supporting this argument, Agyei We shall also look at the following issues and offer recommendations.

What Is the Purpose of Taxation?

At times there are no stationary for record keeping. Moreover, in a country like ours, where the internally generated revenue is low with tax being the predominant will look for an alternative for the external source of revenue, like borrowing from abroad in order to meet up with the necessary social and economic activities.

The concept of tax was initiated from Great Britain in to collect revenue for the government to manage the war against France. Also, in the case of production pattern, the government, in order to encourage the production of certain goods in the economy, may lower exercise taxes on them, which it may raise the exercise taxes on other goods whose production it wishes to discourage.

According to table 4. No matter how efficient a tax system is, its success will depend to a large extent on the availability of trained personnel to execute the tax policies and collect the liabilities assesses.

Debt recovery

All these problem culminate into administrative inefficiency and lack of good internal control system. The provisions of the tax laws are not communicated to the public. In fact, tax revenue will also increase because more proper will be employed and PAYE deducted from their salaries source oil Lagos do not have good roads and brogues linking them with townships where they can sell their farm products.

It includes all taxable persons whether it be individual or corporate bodies. Uses of taxes in the payment of Public Debts and loans. The bill, which was passed into law inmade it the first agency of its kind to be autonomous in the country.

Consumption tax

But the next six years would deliver a steep rise to N3. Joint Tax Board JTB is established under Section 85 1 of Decree of to arbitrate on tax disputes between one state tax authority and another. How then does the government generate fund to provide the basic amenities or necessities.

Process of tax administration in Nigeria. Suppose the government wishes to discourage the consumption of certain type of imported goods, it may impose higher import duties on them, since the price of such imported goods are likely to rise as a result of the higher taxes, domestic demand for them may be reduced, this however, depends on whether such imported goods are elastic or inelastic in demand.

External debt on the other hand, are debts owed by a country to institutions or countries abroad. The Null Hypothesis Ho: People must come out to pay their taxes and other development levies with the existence of vibrant and internationally reputed major centres of industry and commence.

Government he said uses the part of taxes collected to repay the loans. So Zacchaeus saw a sycamore tree in the corner of his eye and decided to climb it so he could see Jesus.

Excise duty Excise duty is the tax levied on luxurious products. Poverty Alleviation The bulk of the capital that is used by the government for poverty alleviation programmes comes from the money collected as tax from individuals, groups and companies.

It is from this law that Bendel state adopted that formed the basic tax states upon which the present day tax laws of Delta state where made. Taxation and Investment in Turkey Reach, relevance and reliability A publication of Deloitte Touche Tohmatsu Limited.

clearing and collection for other financial The following tax exemptions are available under the TDZ law. What are the Importance of Tax Tax is a major source of government revenue and its contributes for the overall development and prosperity of a country. Raising government revenue in terms of income tax, custom duty, excise duty, entertainment tax, VAT, land revenue tax etc.

from various sectors in order to initiate development and welfare. when tax receipts are critical, Oracle Revenue Management for Local Governments equips every front office revenue professionals with a single view of the taxpayer that includes a complete record of all open cases, every previous taxpayer interaction, past filings, bills, payments and outstanding.


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modernization of tax collection system has a great impact on the level of revenue collection in any economy (de Wulf and Sokol, ). In today’s knowledge based world, providing public services are heavily depend on. Income tax, levy imposed on individuals (or family units) and corporations.

Individual income tax is computed on the basis of income received. It is usually classified as a direct tax because the burden is presumably on the individuals who pay it. Corporate income tax is imposed on net profits.

The relevance of tax collection
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