TAX AS A MEANS OF INCOME REDISTRIBUTION IN NIGERIA

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TAX AS A MEANS OF INCOME REDISTRIBUTION IN NIGERIA

 ABSTRACT

Tax as a means of income redistribution in Nigeria according to the universal library in volume seven said that income redistribution is the proportion of the national income going to w age earners it shows the individual differences in the accrued income.

Tax enables us to know the taxable income due to us this study is mainly carried out to determine if or not we are over charged or not and to ascertain the effect of taxation as a means of redistribution in Nigeria. It enables the reader to know how, why an when tax came into existence an also what tax is all about.

In chapter I is the introduction, background of  the study, statement of the problem, objective of the study, significant of the study, scope an limitation of the study, Definition of terms and references. Chapter II shows the overview of the types of tax, agencies responsible for taxation &References. Chapter III is the research metrology, method of data collection, secondary data, method of investigations, location of data an tools of analysis.

Chapter IV is the summary of findings, general benefit of taxation & references. Chapter V, conclusion, recommendation & bibliography.

CHAPTER ONE

1.1                                                   INTRODUCTIONS

As everybody has own aim to acquire income and show how he or she has income over the other, the emergency of tax began to arose as a way whereby some part of the individual, companies and co-operate organization an taxed an little portion refrained to the cost of the stages.

Thus by the process of taxing or cutting some be of income form an individual, companies or co-operate organization, the remaining are t he accused to know how individual is

Although in Nigeria, the origin of tax can be dated back to pre-colonial era. Meanwhile in the period of time tax collection and administration, which usually carried out, by the Emir, chief and their appointed agents. The system at that time was highly functional for that time, it was extremely arbitrary.

By that time, tax collection developed from the northern state of the country and finally proceed to the southern state.

On advert of the British about 1900, the administration of tax was affected through several amending ordinances (non Acts and Decrees), which principally entrusted the responsibility of collection of taxes on local authorities.

Income tax was introduced for the first time in the northern part of Nigeria in 1904 by law Lugard By virtue of an amended ordinance passed in 1918, Income t ax also introduced in some part of western Nigeria. Income tax was not introduced in the Eastern part of the Nigeria until late 1920’s one to the strong resentment to the composition that part of the country.

However what can be regarded as the modern form of income taxation in our country came into existence in 1940 under the direct taxation ordnance No 29 of 1943.

In 1943, by ordinance personal income tax the modern an progressive form and could be saw to have been introduced in Nigeria, ever through the administration and collection of tax was still share between the British and the local authorities.

1.2     STATEMENT OF PROBLEM

Some arrears where tax study may not help to show any changes or where it might be disrupted that is the practice includes areas where there are non-comphance and they include.

(a)              Falsification of finical records

(b)             Failure to file income tax returns

(c)              On reported Income

(d)             Failure to state all benefits in kinds

(e)              Failure to emt sources decisions.

(f)               Claiming improper dedication, tax credit or expenses.

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