CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

1.1 Tax is a financial issue and its payment is a civil duty. It is the imposition of a financial burden for the government on individual firm and companies. In general based, the word tax means any contribution imposed by the government upon individual and companies for the use of government to provide facilities or services as rendered by the state. It is not a voluntary payment or donation but an enforced contribution made on the pronouncement or directive of legislative authorities.

Osita (2004:1) stated, taxation may be define as the compulsory leave by the government through it’s various agencies in the income, capital or consumption of it’s subject such as salaries, business profits, interest, dividends, commission regularities, rent etc.

It could be said that there are three main methods of financial economic expedition open to meet developing countries there are:-

(a)        LOANS

(b)        GRANT

(c)         TAX AND OTHER CURRENT RECEIPT

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Of these sources, tax is perhaps the most important since the level of government expenditure is to a great extent dependent on the ability of the tax system to generate the required revenue at the disposal of the government.