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THE PROBLEMS AND PROSPECTS OF COMPANY
INCOME-TAX-ADMINISTRATION-IN-NIGERIA
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF STUDY.
Every
country in the world tends to generate income through tax administration. In
Nigeria the company income tax administration aims and tries to tax each
company in the state more effectively. However the level at which the company
income tax Administration in Nigeria tend to achieve its desired goals and
objectives depends mostly on the tax office and the company that is operating
in Abia state.
For the tax
Administration in Nigeria to be effective the aspect of the companies been
taxed should be considered adequately and more accurately so that the company
would provide reliable financial performance information for assessment. In
which the federal government derives its income.
Due to the
ever changing tax administration policies in the country and modifications in
the aspect of taxation in Nigeria some companies want to stay afloat and employ
all kind of strategies that benefits them. Some of them evade tax and some
avoid tax.
When tax in
Nigeria is paid by the various companies operating in the state the revenue
collected are used to provide utility services and providing additional
government services such as in education and transport which are of great
importance to the growth of the economy of the state and to the country
Tax
administration in the country is a very important aspect that assist in the
provision of revenue to the economy of which the avoidance of tax payment by
the companies in the country in general and in Abia state in particular will
result to a serious damage to the revenue which should have been generated and
used for the provision of infrastructure.
When a
company is been taxed by the federal board of inland revenue (FBIR) the company
is meant to give an accurate information about their income but some companies
go to the extent of forgery in provision of their documents which gives an
incorrect information to the board, thereby causing reduction in their tax
assessment.
Based on the
above observation or trend of this action over time this study set out to
examine the problems and prospects of the company income tax administration in
Nigeria and in Abia state to be precise.
1.2 STATEMENT OF PROBLEMS.
The tax
administration (collection and assessment of tax from companies is a difficult
task. The assessment and collection of companies’ income tax as at when due has
been a problem
Associated
with company income tax administration in Nigeria. These problem through
observation has been influenced by the following understated factors.
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