TABLE OF CONTENTS
Table of contents
CHAPTER ONE: INTRODUCTION
Background information to the study
Statement of the problem
Objective of the study
Scope of the study
Limitation to the study
Significance of the study
Definition of the terms
Plan of the study
CHAPTER TWO: REVIEW OF RELATED LITERATURE
Classification of taxes
Principle of taxation
Difficulties encountered by tax collector
Incidence of tax
Tax rate structure
System of taxation
Economic effect of taxation
The income tax management act 1961
CHAPTER THREE : RESEARCH METHODOLOGY
Instrumentation and research design
CHAPTER FOUR : DATA ANALYSIS AND FINDING
Analysis of Data
CHAPTER FIVE: SUMMARY, RECOMMENDATION AND CONCLUSION
The effect of taxation on political economy of Nigeria. A case study of Ise/Orun local government of Ekiti state. The project concerned with finding the effect of taxation on the political economy of Nigeria with particular reference to Ise/Orun local government of Ekiti.
Chapter one of the study carried out the root of the project i.e the definition of local Government, how local government raise fund to cover it current expenditure as well as the development project or programmes.
Chapter two trace the literature review i.e the participation of the philosopher that wrote on taxation and effect on political economy in Nigeria and value of tax.
Chapter three talk about the research methodogy i.e the major instrument use for data collection which is questionnaires.
Chapter four focus on data analysis and finding. The chapter involve the of analysis of the data collected.
Chapter five discusses the summary, recommendation and conclusion of the study. So as to this the effect on the political economy of local government cannot be over emphasized
BACKGROUND INFORMATION TO THE STUDY
A local government cab be defined from the simple perspective as government that is the nearest to the people. The local government raises fund to cover it current expenditure as well as it various development programmers. However, the local government realizes bulk of their funds through taxation which is the focus of the research project.
Therefore, tax can be defined as levies are national, state, local government on individual or corporation. It is a compulsory payment made by the individual or enterprises to the government. Part of the income or wealth of an individual or enterprise is taken away and used by the state.
The benefit derived from the payment do not necessarily correspond is it magnitude to the amount of the tax paid but the benefit goes to anyone irrespective of whether to contribute to the public expenditure or not. Ise/Orun local Government was created on October 1st, 1996 under the administration of late General Sanni Abacha.
The local government was curved from Ise Ekiti government. The town under Ise/Orun local government is Afolu, Ogbese, Odada, Oko oyo, Ese, and other villages under it. The local Government headquarter is sited at Ise-Ekiti.
STATEMENT OF THE PROBLEM
Taxes have been one of the major sources of revenue of any country, there are a lot of problem faced in collecting such.
Individual and private company usually declares false profits so as to present correct assessment by the tax officials by them.
The tax payers, most especially the farmer use to run away immediately the see the tax collectors with their files, similarly the farmers do complain of time of collecting which is not suitable for them, and the recommendation should be made to the government for the collection of taxes.
OBJECTIVE OF THE STUDY
The main objectives of the study are:
i. To observe the effects of taxation on the political economy of Nigeria in Ise/Orun local Government.
ii. To identify the problems faces by tax collectors during the process of collecting the taxes.
iii. To recommend solutions to the observed problems going against the collection
iv. To examine the usefulness of tax to the people of Ise/Orun local Government.
SCOPE OF THE STUDY
The research has gone beyond the study of Ise/Orun local Government. It is based on so many local Governments in Nigeria.
It is a widely held notion that the system of income tax action in Nigeria is a very important redistributive factor; this research has get to the extent by which married women pay their own tax based on their income. In addition there is a married couple allowance. From April 1993 this take part in he effective of taxation on political economy of Nigeria and as far as taxation is based on political economy of Nigeria all citizens are subjected to range of indirect taxes, such as Value Added Tax (VAT).
LIMITATION TO THE STUDY
In as much the topic in the research question is taxation issue and is also political economy. It therefore requires sampling of opinion across the county and the large financial involvement limited the research to some materials, it also limited the people we can get in touch with around us. This account for limitation to the study
The research has hinted his work to effect of state in general and Ise/Orun Local Government
SIGNIFICANCE OF THE STUDY
The following benefits are derivable from this project which should be discussed as follows:
1. It will enable the researcher to identify the problem militating against employee performance as a result of high taxation on their salary.
2. It will create awareness that revenue generated from taxation can be used for development of Ise/Orun local government.
3. It will reveal the relevance of tax collection in development of the local government.
4. It will enable the government to know the most effective type of taxation that should be adopted.
5. It will be an eye-opener to future research which may have interest in conducting research on taxation.
1. What are the effects of taxation on the political economy of Ise/Orun local Government of Ekiti state?
2. What are the problems faced by tax collectors during the process of collecting taxes?
3. What are the advantages of taxation for the people of Ise/Orun Local Government?
DEFINITION OF THE TERMS
Some technical terms which features in the research place are defined below so as to enhance proper understanding of the project matter.
Tax: a tax is a compulsory payment or levy imposed by government. (Dictionary of management: 404)
Administration: this is a formulated system which is intended to control, supervise, plan, and make decision about activities of an organization on the basis of established authority.
Direct tax: this are taxes which government caries on the personal income or properties of the taxable individual citizens and are collected directly from time to time e.g. personal income tax, company profit tax, capital gain tax marriage and entertainment fees etc.
Indirect tax: these are taxes which are levied on goods and services. They usually come in two forms. Specific and advalorem e.g. import duties, export duties, excise duties.
Personal income tax: this is the tax paid by the companies to the Government from their profit.
Excise Deities: there are taxes imposed on imported goods
Property tax: this is the tax on property on an individual.
PLAN OF THE STUDY
The aim of writing this essay is to examine the effect of taxation on the political economy of Ise/Orun local Government of Ekiti state Nigeria. Chapter one of the study comprises the historical background information to the study, scope and limitation of the study and also significance of the study. Chapter two comprises the review of related literature definition of taxation, classification of taxation and the people that are responsible for paying taxes. Also the research will critical examine the tax collector during the problems encountered by the tax collectors during the process of collecting tax. In the chapter, the principle and system of tax will also be viewed. Chapter three deals with the instrument and method in collecting the required information description of the population sample for the study and method in analyzing, the data collected. Chapter four involve the process of analyzing data collected, meanwhile in the methodology of the study, the researcher uses questionnaire and oral interview. Lastly recommendations are made to solve the problem or difficulties by the tax collector also summarized and conclusion were contained in it
ARIWODOLA (1978).Personal taxation in Nigeria. Concept publication limited Lagos.
DUE J.F (1987).Taxation and economic development in typical Africa Cambridge. Mass Mitt press
EWA U.D. & G.A (1983). New system economic Africal fed publisher limited zaria