Thesis Abstract

Abstract
The administration of personal income taxation plays a crucial role in the overall tax system of a country. This research project focuses on conducting an appraisal of the administration of personal income taxation, with a particular emphasis on examining the efficiency, effectiveness, and fairness of the current practices. The study aims to analyze the existing processes and procedures involved in the administration of personal income tax, identify any shortcomings or challenges faced by tax authorities, and propose recommendations for improvement. To achieve this objective, a mixed-methods approach will be utilized, combining both qualitative and quantitative research methods. The qualitative aspect will involve a review of relevant literature, official documents, and reports related to personal income taxation administration. This will help in understanding the theoretical framework and practical aspects of tax administration. Additionally, interviews and focus group discussions with tax officials, taxpayers, and experts in the field will provide valuable insights into the current practices and challenges. On the quantitative side, data analysis will be conducted to assess the efficiency of the tax administration system in terms of processing tax returns, conducting audits, and collecting taxes owed. This will involve analyzing key performance indicators such as the time taken to process tax returns, the rate of tax compliance, and the effectiveness of enforcement measures. By comparing these metrics with established benchmarks and best practices from other countries, the study will identify areas where the administration can be enhanced. Furthermore, the research will evaluate the fairness of the personal income tax system by examining the progressivity of tax rates, the presence of loopholes or exemptions that benefit certain groups, and the overall distributional impact of the tax. This analysis will help in determining whether the current system promotes equity and social justice or if there are areas that require reform. Overall, this research project aims to provide a comprehensive appraisal of the administration of personal income taxation, with the ultimate goal of offering practical recommendations for enhancing its efficiency, effectiveness, and fairness. By identifying the strengths and weaknesses of the current practices, this study seeks to contribute to the ongoing discourse on tax reform and administration, with the aim of improving compliance, reducing tax evasion, and ensuring a more equitable tax system for all citizens.

Thesis Overview

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In developed and developing countries there are wide range of taxes and levies that affect individuals and companies, citizens and foreigners, manufacturers and marketers, workers and pensioners . In Nigeria taxes range from petroleum profits taxation to tenement rate imposition, and taxes are imposed at different levels to enable the government provide certain essential services and facilities to the population. Some of the issues involved are legal, economic, others are political, sociological, while others are historical.

The study will begin the appraisal by examining related taxes and levies applicable in Abia State and the legal instruments governing them. The government plays the piper and dictates the tune. Ogundele (1999:8) states that government intervention in an economy takes many forms. The degree of intervention differs from country to country, depending on the form of political model adopted in the governance of the country. The intervention referred to is tax, which in a well planned economy affects every aspect of human endeavour. On the subject of intervention which differs from one form of government to another, and the form of intervention, they either intervene for the wrong reason or adopt the wrong strategies when intervention is justified. Mbanefo (1999:21) posits that the implications of government tax intervention are many and will be expatiated in this study.