CHAPTER ONEINTRODUCTION1.1 BACKGROUND OF STUDYIn all generation, the problems of personal income tax generation andadministration continues to surface in one form or another in virtually everysociety, especially in this part of the world. It is important to point out thatthe federal government has taken adequate steps in effective taxadministration.This failure on the part of the federal government is responsible forpoor financial positions of both the state and local government. Besides, thisinadequate planning and absolute laws governing taxation, evaluation andcollection is characterized by chaos.This chaotic nature of the system can be appreciated by politicalinfluence or interferences in the process of taxation during the civilianadministration in the country which gave rise to untrained and inexperiencedpersonal being entrusted with the work of collection and administration ofpersonal income tax.The important of these issues to tax administration in the developingcountries like. Nigeria, can be seen from the following extract from taxadministration in under developed countries. The tax administration findshimself working with a staff which is inefficient in experienced, and poorlypaid.BOARD OF INTERNAL REVENUE ENUGUThe board of internal revenue Enugu was established to administerincome tax in Enugu state just as there are likely to states of the federation.Income tax was first introduced in Nigeria in 1904 by late Lord Lugard.The introduction of Native Revenue ordinance of 1927 was most difficult inthe Eastern areas of the country, due mainly to absence of recognized centralAuthority Resistance to this form of direct taxation in such that it result toriots notably in calabar, Owerri and the famous, Aba women Riot of 1929which was so severe that it attracted a probe. Beside, the Native Revenueordinance were also Native direct taxation ordinance for the colony and theNative income tax ordinance.These ordinance were late modified and incorporated into the Directtaxation ordinance No 29 of 1940, cap 54 and the income tax ordinance No 29of 1943 respectively.The direct taxation ordinance 1940 empowered native authorities to taxAfricans in their areas of jurisdiction while the income tax ordinance 1943was for the taxation of non-Africans in companies. The two ordinances werethe foundation of our modern taxation which necessitated establishment ofboard of internal revenue in each of the states of the federation which EnuguBoard of internal Revenue is one of them.
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