Essay regarding Tax Operations and Earnings in Lagos State

Tax Administration and Earnings in Lagos State

Research Diary of Financing and Accounting ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol three or more, No 5, 2012

Tax Administration and Revenue Generation of Lagos Local government, Nigeria David A. Enahoro1* OLABISI Jayeola1. 2 1 . Department of Accounting, Babcock University, Ogun State, Nigeria. 2 . Office of Financial Research, Redeemer's University, Ogun Condition, Nigeria. 2. E-mail from the corresponding writer: [email protected] com Abstract The research examines the overall effectiveness of tax supervision in relation to analysis, collection and remittance of tax in Lagos Condition, Nigeria. A survey questionnaire of the machinery of taxes administration was carried out in which 130 forms were given to analyse the judgment of civil servants straight connected with taxes administration in the five County areas of Lagos State (Somulu, Mushin, Ikeja, Kosofe and Surulere). Hypothesis tested pertaining to the relationship which usually exists between tax government, tax regulation and income generation. The Kendall assess was implemented and obtaining is that the tax administration in Lagos condition is not really totally useful. Hence, duty administration influences the revenue generated by government; also, there is a significant relationship between tax operations, tax procedures and tax laws. The study therefore suggests that Lagos State Government can put in place a tax system that can improve better supervision of duty systems and tax selections should be left in the hands of private organisations. Keywords: Taxation, Administration, Revenue and Duty laws 1 ) Introduction Ariwodola (2001) described tax as a compulsory levy imposed by the government authority through its agents on its topics or his property to accomplish some goals. Arnold and Mclntyre, (2002) define taxes as a mandatory levy about income, usage and production of goods and services as intended by the relevant legislation. Duty is a impose imposed by government power upon property, individuals, or transactions to raise money to get public purposes. This classification is on the other hand imperfect. Study regarding the teachings of Christianity, Islamic and other prominent religions in the world demonstrates tax is known as a religious responsibility based on social and municipal responsibilities (Agbetunde 2004). Each of them support and encourage tax imposition both to redistribute wealth in order to finance authorities project. The Nigerian taxes administration is in line with all the British type of tax operations since 1960 and continues to be operating this up to 1990 when the self-assessment scheme occured which seems similar to the American model of duty administration program (Adesola 2004). The Uk model of duty administration presumes tax payers are unskilled as to duty process and tax government bodies do not count on information given by tax payers. Returns of the tax payer are thoroughly verified throughout the application of the American unit in reference to the rigid United kingdom model. The American style despite the advantages that can be derived from its program has not discovered a good place in Nigeria mainly because all the trend that managed to get a success in the us such as voluntary compliance program, competence of tax paying customer, efficient data processing system which supports detection of fraud are still not present the Nigeria context. Subsequently disadvantage offers adversely affected on county tax system since they are area of the ruling process in the express. Such effects has generally been based upon problems linked to collection, evaluation and results procedures from your government region. There is doubt on how useful the duty authority and also other bodies playing the collection of tax and make comes back to the community and local government. In an economic climate like Nigeria where wonderful reliance is placed on one way to obtain revenue by the state government, the understanding and appreciation of the significance of tax being a source of income is of very important importance. This is simply not...

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Analysis Journal of Finance and Accounting ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Volume 3, No 5, 2012

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