...The Nigerian tax system has undergone several reforms geared at enhancing tax collection and administration with minimal enforcement cost. The recent reforms include the introduction of TIN, (unique Taxpayer’s Identification Number which became effective since February 2008), automated tax system that facilitates tracking of tax positions and issues by individual taxpayers, e-payment system which enhances smooth payment procedure and reduces the incidence of tax touts, enforcement scheme (Special Purpose Tax officers), these are special tax officers in collaboration with other security agencies to ensure strict compliance in payment of taxes. The tax authority now has autonomy to assess, collect and record tax. This enabling environment which came into being on the basis of (Section 8(q) of FIRS Establishment Act 2007) has led to an improvement in tax administration in the country. The Nigerian tax system has undergone significant changes in recent times. The tax laws are consistently being reviewed with the aim of repealing obsolete provisions and simplifying the main ones. Under current Nigerian law, taxation is enforced by the 3 tiers of government, i.e. federal, state, and local governments, with each having its sphere clearly spelt out in the Taxes and Levies (approved list for Collection) Decree, 1998. Despite this improvement, there are still a number of contentious issues that require urgent attention and among them is the issue of the appropriate tax authority to administer...
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...spurring economic growth, this stands that government must have the necessary tools in her kit to achieve this role. This attracted the attention of the researcher to evaluate the Personal Income Tax in Enugu state, taking the Enugu state Board of Internal Revenue as a case study.The primary objective of this research work is to investigate the mechanism, policies and other factors being applied by Enugu Board of Internal Revenue in other to highlight why they are not effective and efficient.In pursuant of the stated goal, primary data was collected by questionnaires and direct interview with both tax payers and tax officials. Secondary data was collected from published materials including textbooks and other relevant literature.The statistical analysis of the data showed among other things that the tax generation on income, is not increasing alongside with the expenditure of the state because of lack of proper machinery and method used by the board of Internal Revenue in collecting income tax due, ignorance, dishonesty and other factors working against effective tax administration in the state.On the basis of these identified problems, a number of recommendations would be made, which it is hoped that if implemented, would improve revenue generation through tax generally, and Personal Income Tax in particular. CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Government has a primary duty of raising the standard of living of the people, maintain law and order and to defend...
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...Abstract ……………………………………………………… List of tables ………………………………………………… Table of content …………………………………………….. CHAPTER ONE Introduction 1.1 Background of the study ……………………………… 1.2 Statement of problems ………………………………… 1.3 Research Questions / Hypothesis ……………………… 1.4 Hypothesis …………………………………………….. 1.5 Purpose of the study …………………………………… 1.6 Significance of the study ……………………………… 1.7 Scope of the study …………………………………….. CHAPTER TWO Review of literatures 2.1 Fundamental concept of Nigeria Taxation ……………. 2.1.1 History of Nigeria Taxation …………………………… 2.1.2 Laws governing Income tax in Nigeria …..…………… 2.1.3 Importance of Taxation …………………………………. 2.1.4 Categories of Taxes …………………………………….. 2.2 Basis of tax Imposition (major provisions) ……………… 2.2.1 A review of major assessment provision ………………… 2.2.2 Relevant tax authorities ………………………………….. 2.3 Problems of tax collection ……………………………….. 2.3.1 In adequate qualified man power, poor motivation and corruption ……………………………………………… 2.3.2 Poor attitude to tax generation and usage………………… 2.3.3 Lack of management audit and unrealistic budgeting……. CHAPTER THREE Research methodology 3.1 Design of the study ………………………………………. 3.2 Area of the study ………………………………………… 3.3 Population ……………………………………………….. 3.4 Sample size ……………………………………………… 3.5 Sampling techniques ……………………………………. 3.6 Instrument of data collection ……………………………. 3.7 Validity and reliability of instrument …………………… 3.8 Techniques for data analysis ……………………………. CHAPTER FOUR ...
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...Background of the Study Tax is an instrument to regulate economic growth and development across every economy. As a result, governments across the world impose one form of tax or the other. The main purpose of imposing tax has been for the government concerned to use the proceeds of the taxation to run the government and to provide essential services. Before a country considers efficient and effective way of administering tax system; it must possess a clear picture of the scope of its tax system as well as considering the tax rate and tax base over time. The quantity and quality of revenue required by tax administrators are to a large extent determined by the type of tax system which is introduced. A nation’s tax goals are not achieved by designing a tax system which is fair, any fair system which is not administered as planned becomes inequitable. Thus, a good tax system is capable of financing the necessary level of public spending in the most efficient and equitable way possible. It should also (1) raise enough revenue to finance essential expenditures without recourses to excessive public sector borrowing, (2) raise the revenue in ways that are equitable; that minimized its disincentive effects on economic activities, (3) do so in ways that do not deviate substantially from international norms. (Tanzi and Zee,2000). It is being noted that the aims and objectives of taxation differ from one country to the other. However, an essential common feature of tax has been the dynamic...
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...of Bangladesh’s current tax system * Growth trends and revenue structure of Bangladesh * Contribution of direct and indirect taxes to revenue * Reasons for introducing vat in Bangladesh * Ratio of VAT to Revenue & VAT to Tax * Revenue Structure during Pre and Post VAT Regime * VAT Rates in Selected Countries * VAT Productivity in Selected Countries * Some Important Features of VAT in Bangladesh * Tax Base for VAT * Arguments For VAT * Arguments against VAT * Reforms in VAT: Current Initiatives Introduction: Value Added Tax (VAT) is imposed on value added by a manufacturer of a firm or distributors. Value added tax means a tax on the amount by which the value of an article has been increased at each stage of production. It is a multistage consumption tax imposed on goods and services, which is collected at every stage of production and distribution rather than at the retail stage alone. Objectives of the Study: We can gain knowledge about the tax system (especially VAT) of Bangladesh by studying this topic. As following aspects of tax we can learn from this study: 1. To present an overview of tax system of Bangladesh. 2. To evaluate Govt. Performance in collecting revenue. 3. To identify the effect of the tax system (especially VAT) to economic development of Bangladesh. 4. To identify the problems and weaknesses of collecting revenue through VAT. Salient Features of Bangladesh’s Current Tax System: Notwithstanding...
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...Public Finance Methods in Nigeria The Federal Republic of Nigeria is comprised of 36 states located in West Africa geographically bound by the Republic of Niger to the north, the Gulf of Guinea (on the Atlantic Ocean) to the south, the Republic of Cameroon and Chad on the east and Republic of Benin on the west. Since gaining full independence from the British in 1960, Nigeria has gone from a Parliamentary system of government (modeled after the British Parliament), the Biafran Civil War, and numerous dictatorships to the current Democratic system of government. Widely described as the most populous country in Africa (accounting for over half of West Africa’s population alone[i]), the US State Department estimated in 2010 a population of approximately 152 million people of 250 Ethnic groups with the largest ethnic groups comprising of Hausa-Fulani (north), Igbo (south-east), Yoruba (south-west) and Kanuri (north). The religions practiced in Nigeria are Islam, Christianity and indigenous African traditional worship. The Hausa’s are from the northern part of the country and are predominantly Muslims, the Yoruba are from the south west and are predominately an even mix of Christians and Muslims, the Igbos are from the southeast and are predominately Christians. The official language of Nigeria is English in addition to other local dialects. Nigeria’s commercial capital (and former political capital), Lagos, is located in the southwestern part of the country while the political...
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...land area of 910,770 sq.km/351650sq miles, having now a population of over 140 million and named Nigeria in 1914 has since its existence, had several authorities, kingdoms and empires among which are: The Benin Kingdom, Oyo Empire, Nupe Kingdom, Borno Empire, Fulani Empire, and the Hausa Kingdom. The country today operates a federal system of government in which power is shared between: the Federal, State and Local governments. Revenue generation has always been a crucial part of every government, authority or kingdom as the case may be. The revenue available determines to a large extent its capabilities, policy, functions and plans among others. For revenue generation, tax has always been a vital source in order to meet expenditures of the government. According to Ogundele, the essence of all taxes is the removal of resources from private hands of the individuals, corporate bodies, trusts, families, societies, and communities into the public sector to finance activities that has to do with the whole society. According to Louis Kaplow (2006;2) “Raising revenue to fund government expenditures on public goods and services is a fundamental purpose of taxation” Also Lymer and Oats (2008;14) noted that government functions include managing and regulating the economy (for example, protection of the environment) Developing the society and providing public goods. A comparison of the tax percentage, revenue generated by the government before 1970s, with that in recent time’s shows...
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...factors 11 Population demographics 11 Technological Factors 12 Level of technology in renewable energy 12 Availability and cost of skilled employees 13 Geography 14 Renewable energy potential in Nigeria 16 Solar Energy 16 Wind Energy 17 Waste-to-energy 17 Biomass 17 Reference 19 INTRODUCTION There is higher demand for electricity in the country due to the high consumption and need for electricity, and this project is the plan to study the demand for renewable energy re- sources in Nigeria and to find out the main competitors and discover the best periods for market entry in the country via the micro and the macro environmental analysis. The demand for renewable energy in the country is being driven by the increase and urbanization access to energy intensive technologies, product and the industrial growth. The Nigerian government is wooing energy companies to come and invest in the country. Special energy policy for foreign investors is being organized, such as tax reduction for energy investors in the country, softening all policies related to energy. Nigeria has a lot of renewable energy potential such as sunlight, which might be productive for solar power, and abundance bio-waste for biomass energy production. The renewable energy products that Nigeria requires most are Solar, Hydro, Wind, & Bio-energy. Premium Renewable Energy Sdn Bhd was formed in 2007 with the objective of affecting positive environmental change at a global scale by replacing...
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...duty for which you receive monthly salary for is an act of corruption, because you are committing economic sabotage by not giving commensurate value for your salary. A governor or president who diverts projects meant for the equal development of all regions to his town or village is an act of corruption that doesn’t involve taking or giving a bribe. Therefore corruption has no universally accepted definition; this is because corruption depends on the actors, and the location where it was carried out. It also depends on the enabling law which may give room for twisting or circumventing. Some nation’s description of corruption is broader than others. For example while most nations characterize embezzlement of public funds as corruption, Nigeria under President Goodluck Jonathan...
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...is through a well structured tax system (ogbona and ebimobewei, 2012). The vital role that taxation play in an economy cannot be overemphasized. Tax is a compulsory levy imposed by government or its agent on her citizens in order to raise revenue for the funding of economic activities. Nkoro and worlu, 2012 defined Tax as a fee charged or levied by a government on a product, income, or activity. If it is levied directly on personal or corporate income, it is called a direct tax. If it is levied on the price of a good or service, then it is called an indirect tax. The main reason for taxation is to finance government expenditure and to redistribute wealth which translates to financing development of the country (Musgrave and Musgrave, 2004, Bhartia, 2009). Apart from revenue generation prowess of tax, it is also used by the government to discourage consumption of certain goods. Taxation is a fiscal tool that most government uses to regulate both the micro and macro aspect of an economy. Generally, The importance of tax lies in its ability to generate revenue for the government, influence the consumption pattern of the people and also regulate the economy through its influence on vital aggregate economic variables such as income, employment, prices of goods and services and investments. The recent shock in world oil prices has made so many oil-dependent nations in the world to adjust their budget for 2015 fiscal year in order to remain afloat. Nigeria is not an exemption from this...
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...Economic Benefits from Air Transport in Nigeria Nigeria country report Acknowledgements Oxford Economics gratefully acknowledge the help that we received from the International Air Transport Association (IATA) in preparation of this report. Through a survey conducted by IATA many organisations across the aviation industry supplied us with data that has formed an integral part of our analysis. In addition, the Airports Council International (ACI) very kindly provided us data on the economic activities at airports. We would like to thank all these organisations for their generosity in supplying this data, without which this report could not have been written. A note on the data reported in the report Unless otherwise stated, the numbers reported in this report relate to the calendar year 2010. Oxford Economics 2012 v1.1 2 Nigeria country report Contents Facts & figures.......................................................................................... 4 1 1.1 1.2 Consumer benefits for passengers and shippers ......................... 7 Consumer benefits ..................................................................................... 7 Estimated consumer benefits ..................................................................... 8 2 2.1 2.2 2.3 Enabling long-term economic growth............................................ 9 Connectivity and the cost of air transport services .................................... 9 How aviation...
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...International Journal of Business and Social Science Vol. 2 No. 19 [Special Issue - October 2011] Perceived Relationship between Corporate Capital Structure and Firm Value in Nigeria Semiu Babatunde ADEYEMI Department of Accounting University of Lagos Lagos, Nigeria Collins Sankay OBOH Department of Accounting University of Lagos Lagos, Nigeria Abstract This study examined the empirical effects of corporate capital structure (financial leverage) on the market value of a selection of firms listed on the Nigerian Stock Exchange. Both primary and secondary data were obtained for analysis employing both descriptive and inferential statistics for analysis. A sample size of 150 respondents and 90 firms were selected for both primary data and secondary data respectively. Descriptive statistics was used to analyse the primary data, while Chi-Square was used to draw inference of perceived relationship between capital structure and firm value. The results of the study suggested that a positively significant relationship exists between a firm’s choice of capital structure and its market value in Nigeria. The study suggested that listed firms in Nigeria should strategically plan and manage their capital structure in order to maximize their market values. Keywords: Capital structure, market value, Nigeria, debt, equity. 1. Introduction 1.1 Background to the Study After the Modigliani-Miller (1958 and 1963) paradigms on firms’ capital structure and their market values, there have been...
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...NIGERIA Country Description | Cultural * Major Languages: English (Official Language), Hausa, Igbo, Yoruba. * Religion: Christianity and Islam. * Nigeria is a multinational state. It has more than 500 ethnic groups.Administrative. * Nigeria has maintained its political stability successfully. * Three distinct systems of law in Nigeria: Common Law, Customary Law and Sharia law.Geographic * Nigeria is a costal country, so it has access to the shipping routes. * Inadequate infrastructures for logistics and supply chain.Economic * High potential for growth in economy. * Significant Difference in income levels between rich and poor. * Abundance of workforce. * Untapped market. | Relative Importance | With reference to Essential Business Requirement of COSTCO, we evaluated the significance of the four factors: * Culture *** | * Administrative **** | * Geographic **** | * Economic ** | {key: (****-Most significant) - (*- Least Significant)} | Business Challenges | * Culture * Nigeria has local informal retail shopping market. Significant difference in culture (high context). * Variety of people from different cultures, challenge to please each one. * Administrative * It has an inefficient property registration system. * Government has restrictive trade policies. * Geographic * Inadequate infrastructure. Difficult to reach out to rural customers. * Economic * Regional disparity affects target customers. * Presence of...
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...www.ccsenet.org/ijbm International Journal of Business and Management Vol. 7, No. 3; February 2012 Adoption of International Financial Reporting Standards in Developing Countries: The Case of Nigeria Abdulkadir Madawaki College of Business, Universiti Utara Malaysia Sintok, 06010 Kedah, Malaysia E-mail: abdulkadirmadawaki@yahoo.com Received: September 16, 2011 doi:10.5539/ijbm.v7n3p152 Abstract The study focused on the adoption process of International Financial Reporting Standards (IFRS) on a developing economy, with particular reference to Nigeria. The paper is based on the data obtained from literature survey and archival sources in the context of the globalization of International Financial Reporting and the adoption of International Financial Reporting Standards (IFRS).Nigeria has embraced IFRS in order to participate in the benefits it offers, including attracting foreign direct investment, reduction of the cost of doing business, and cross border listing. In implementing IFRS Nigeria will face challenges including the development of a legal and regulatory framework, awareness campaign, and training of personnel. Recommendations were made to forestall such challenges which include strengthening education and training, establishment of an independent body to monitor and enforce accounting and auditing standards. Keywords: Financial reporting, Adoption, Accounting standard and Developing countries 1. Introduction Globalization of capital markets is an irreversible...
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...THE POLITICS OF REVENUE ALLOCATION AND RESOURCE CONTROL IN NIGERIA: IMPLICATIONS FOR FEDERAL STABILITY by Emmanuel O. Ojo Department of Political Science, University of Ilorin, Nigeria Email: eojo12000@yahoo.com Abstract: No doubt, one of the perennial problems which has not only defied all past attempts at permanent solution, but has also evoked high emotions on the part of all concerned is the issue of equitable revenue allocation in Nigeria. Thus, the thrust of this paper is an in-depth analysis of the politics of revenue allocation cum resource control. The paper takes a cursory look at virtually all previous attempts at arriving at equitable formula. The paper however, infers that in a deeply plural and divided society like Nigeria a polity that ‘robs Peter to pay Paul’ may eventually be both counter-productive and dysfunctional. The clarion call however is a federal system with fiscal policy that can imbue in the citizenry sense of justice, equity and fairness visà- vis revenue allocation. To do otherwise according to the findings of this paper is to jeopardize all efforts at national cohesion and integration. Keywords: Federalism, fiscal federalism, revenue, resource, Grants-in-aid Federal Governance ISSN 1923-6158 www.federalgovernance.ca Forum of Federations 325 Dalhousie Street, Suite 700 Ottawa, Ontario K1N 7G2 Canada ♥ Ojo About Federal Governance Federal Governance is an online graduate journal on theory and politics of federalism and multilevel governance. Its mandate...
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