1.1 BACKGROUND TO THE STUDY
Historically, the commonest enemy o the people of rural communities in all races or cultures is the tax collectors. In the bible, they were regarded as sinners just for the sake of their freely chosen and legitimately recognized occupation. In the biblical context, it was even offensive to meant containing oneself. Imagine the degree of hatred!The history of other cultures despite the same picture of hatred for both. The tax (tribute) collectives and their employees. The history of Empires such as the old Roman Empires, the British Empire, Empire of Western Sudan and those of Hausa State, just to mention a few, were sustained by tribute (taxes) paid y their subjects. The common attribute of all these tributes is that their collection generated a lot of controversies. Here in Nigeria, it can be recalled that imposition and payment of taxes were one of the most outstanding activities of the colonial Government. Through different methods, the British were able to impose taxes on the citizens who viewed them as unwarranted extortion and exploitation. The situation has not changed since independence. Regime after regime has been face with the problem of resistance of tax payment y the citizens who, like their colonial generation regard tax payment as an expenditure in futility, a distasteful exercise, an avoidable loss, a legalized extortion and punitive measure by the greedy government. Even the rapid development in education has not done much to influence the negative attitude towards tax payment.If the educated elites are precisely, the enlightened populations of the Urban or civilized areas regard taxes as obnoxious those in the rural communities would regard it as a taboo for obvious reasons. One should have witnessed an encounter between tax collection and villagers to be able to understand the degree of bitterness existing between the two partners. In fact, a story goes that in one such occasion, a tax collector was killed! Incidents of this nature resulting during tax raids in village markets and squares are communities.
Studies show that government do not just imposed taxes without due consideration of certain underlying principles. It is also know that money raised through taxes are not just damaged in a dustbin or packed in a warehouse.In fact, an appropriate agency of the government explains from time the users which the tax revenues are part in addition to other reason.Inspite of the position stated in the above paragraph, revenues from taxes have continued to be below expectations. On the part of the taxpayers, the cries have not abated. What a horn of delima! Acts of the National Assembly, tribunals and tax forces on the issue of tax have not yielded the desired results.
1.3 PURPOSE OF THE STUDY
The main purpose of this study can be summarized as follows:
1. To find out the causes of the persistently low revenue derivable from income tax of rural communities with particular reference to Ugwuaji community
2. To explain the reasons behind the negative and hostile attitude of the rural dwellers towards payment of income tax
3. To discover to what extent the provisions of different acts and degrees relating to income tax are applied with regards to assessment and collection
4. To make recommendation as to how best income tax administration should be carried out to achieve the desired result. I.e. Maximum tax yield.
1.4 SCOPE / DELIMITATION OF THE STUDY
The focal point of this study is personal income tax (PIT) as defined by income tax management Act (1961) as amended to date by various Decrees and Acts. The study will not cover company income tax, petroleum profit tax, valued Added Tax, capital gain tax, capital transfer tax, and other numbers indirect tax.
However, mention would be made, where necessary, of these forms of taxation especially as a way of clarifying certain conceptual applications
The researcher intends to restrict the study to personal income tax under the authority of state Board of internal revenue which exclude Affairs and Foreign missions.
Another aspect of delimitation is that the pay as you earn system tax payers and its administration will not feature in terms of qualitative measurement by may serve as a guide where necessary. The researcher does not intend to study this aspect of personal income tax since its’ administration is uniform in both urban and rural areas.
The researcher does not cover the accounting aspect of income tax administration. It is restricted to assessment collection machinery and the resulting tax yield. The reference period of the study is 2001 to 2003.
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