Collection and assessment of personal income tax has been bedeviled with problems. These problems made the researcher to investigate if there were problems existing and if so, what are the consequences to the state. As a result, some related literature was reviewed; some vital data were also collected from primary and secondary sources. The major findings of the study was that the personal income payer who measured their profit do not follow acceptable format from profit and loss account measurement e.g. cash and stock withdrawn from business are not properly recorded. Absence of proper assessment have no noticeable impact on tax payers in the management of their business, most of the tax payers do not keep proper books of account of their business. More incentive such as promotions and rebates should be given to tax officials on the tax collected.
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