Personal income tax generation and utilization in Tarabastate Board Of Internal Revenue, Nigeria

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Date
2018-05
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Publisher
Kampala International University, College of Economics and Management
Abstract
The personal income tax is one of the major sources of income to the government. However, personal income tax has not yielded the much expected results in Taraba state. The study focused on how personal income tax generation affects tax utilization in Taraba state, Nigeria. The objectives of the study were; to assess the relationship between tax identification and tax utilization: to examine the relationship between tax assessment and tax utilization: to investigate the relationship between tax collection and tax utilization in Taraba state, Nigeria. The study employed a descriptive survey design using quantitative method of enquiries. The study population comprised of 600 people, from which a study sample of 234 respondents were selected using simple random and purposive sampling methods. To ensure reliability and validity of the instrument cronbach alpha and Content validity index calculation were used. The outputs of the cronbach alpha were above 0.70 for the instrument, which declare the instrument reliable. The content validity index is 83.3%, which declare the instruments used to be valid. Data was analyzed using SPSS, descriptive, bi-variate and multivariate analysis was done. The findings of the study showed a positive relationship between tax identification and tax utilization (r = 0.616). It also showed a positive relationship between tax assessment and tax utilization (r = 0.673), and a positive relationship between tax collection and tax utilization (r = 0.650). The study concluded that the various components of income tax generation, that is tax identification, tax assessment and tax utilization have positive and significant influence on tax utilization. The researcher recommended that the need for reductions in the direct tax rates and increases in the indirect tax rates, that government should pass new tax laws, that tax authorities should properly review and evaluate the assessment and collection procedures so as to encourage compliance by the tax payers, that qualified personnel with the right attitude should be recruited, trained and retrained to man the Internal revenue board, and that deliberate effort should be made to educate tax payers on the need to pay taxes while the government should embark on aggressive infrastructural development to justify taxes received. This study contributes to the existing knowledge/research on taxation in Nigeria and Taraba state, it as well provide befitting recommendations to improve the taxation system.
Description
A research thesis submitted to the College of Economics and Management in partial fulfillment of the requirements for the Award of a Master’s of Science (Msc) In Accounting and Finance of Kampala International University
Keywords
Personal income tax generation, Tarabastate Board, Internal Revenue, Nigeria
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