CHAPTER ONE

1.0    INTRODUCTION

          This paper is written with the view to shed light on the taxation as a sources of revenue generation in Asa Local Government and offers suggestion on how to improve the source of the local government finance no matter how resources are open to any government, it must be understood that wants can never be satisfied base on their unlimitedness.

1.1    BACKGROUND TO THE STUDY 

          taxation as a source of revenue generation with particular view of Asa Local Government before now, it is fact that a lot of research has been carried out with regards to the activities of the local government some many problems which are connected with taxation and as a farm of revenue generation had been identified and army recommendation have been offered in spite of this, this project intends is it own small way to further identify the problem in Asa Local Government and there offer suggestion as to the step to be taken to rectify these problems and increase tax yield in this local government.

          In attempt to carry out this project work, this project briefly and explicitly touches caries are of taxation. It is therefore divided into five chapter each dealing with specific aspects of taxation and revenue generation either in general or with a particular reference to the Asa Local Government.

          Ackah Nyamik E.E(1988) in his book stated that the success of any government, be it federal, State, and Local depend extensively of the availability of financial resource so fits disposals and the judicious use to which those resources are made from the time immemorial, government imposes various forms of taxes, aimed of raising enough to cover the cost of administration activities and defend. Therefore is not unusual to some powerful kings to levy taxes on the inhabitant of their area of administration frothier own purpose.

          This continue to exist until when later is was understood that certain services such as maintain of law and order, defence against external aggressors, provision of social amenities which could serve as a means of continuity to the communities, who might be as the brink of collapse. In modern society therefore, it is the duty of the government of any state to regulate certain activities of individual of group that might prove hazardous or ingenious to the entire effectively, there has to be a sound financial resources at the government disposal the bulk of which could only be made a reality through taxation.

          Eddy C.N (1995) view that taxation is almost as old as the world it self. For instance, in 1217, it was stated in magna certain Britain that no aid shall be imposed in the Kingdom unless by the common council of the realm as early as 1799, income tax was introduced as a temporary measure to last for a period of one years.

          As a new development project were increased, the government need to increase current expenditure to (0100.01982;305-306) administer them as in the cases of hospital, school road, maintenance among others. These for in Nigeria, every high percentage of government revenue, comes from duties on import, exports, post, tax e.t.c. taxation therefore, is not only an influence on the economy of the country but also on important instrument of economic policies.

          At the level of local government have tremendous functions to performs in order to execute these functions effectively, they must be able to raise necessary finance and set their priorities in a way that will match their purpose to existences.

The financial resources available to the local government should be determined the function and responsibilities it has to meet both of which most totality with the purpose and individual structure of particular local government area.

          In order to enhance the development role the government they were expected to prepare and execute their development programmes as a means of strengthening the ability of the local government to perform their functions, on taxation was introduced to local level by (1976), poll tax has been the only uniform types of tax in the whole country’s. This sources of revenue generation was one of the reliable and independent sources to the council by statutory allocation tool over the provision of resources based of the local government council in the country.

          Resources from poll tax started to reduce with the introduction to this statutory allocation and as a result emphasis were laid on the introduction of rates changes fees e.t.c compensate the devilling revenue from a poll tax, today, property tax has been found to the most reliable and widest source of revenue accruing to the local government to provide of the necessary services to the people at the grass root.

1.2    SCOPE AND LIMITATION OF THE STUDY 

          The scope and limitation of the study will be focused of taxation only, as a form of revenue generation in Asa Local Government any others local government is not my focus except Asa Local Government only.

1.3    AIMS AND OBJECTIVES OF THE STUDY

          No organization can boast of it existence if it can’t fulfilled the purpose for which is being set up for. In fact no purpose can be achieved if there are no means (resources) of their disposals to finance the project. Hence this paper aims at addressing it self to taxation as a form of revenue generation in Asa Local Government to achieve the purpose of its existence.

          This generation base on this study therefore is to collect data on taxation analysis these data and provides an insights to the generation attitude of the people of the local government towards the course of tax collection. The use of this taxes is the area of well as offering recommendations how these problems will be over come.

i         To know the problem or constrain tax collector encounter in Asa Local Government.

ii        To provide solution to the problems

iii       To know the historical background of Asa Local Government Area.

1.4    SIGNIFICANCE OF THE STUDY  

          There are three tiers of government in Nigeria, Federal, State and Local level of these three the local government are less funded and are finding it difficult to fulfilled their financial obligation so the main sources of generation founds and maintain the local government resources the funds are generation through tax collections from district or ward in the local government so the tax collection help to improved function of the local government in Nigeria.

1.5    DEFINITION OF TERMS USED

          In taxation may definitions and terms are used they are as follows:

1. Assessment: This is the act of fixing the value of property, the amount of income for the purpose of taxation.
2. Income: This is a return in monetary term received during a given period of time either on salary or receipt from traders or interest from investment. Spicer and Pegilers (1970)
3. Tax Authority: This is a groups of person or a person empowered by law of a state to impose various types of taxes as the resident of the state for effectiveness of administration.
4. Tax Avoidance: This is a method by which a tax payers reduced his tax liability by a lawful means, this lawfulness arise as a result of geneuness and approval of tax reliefs given by a tax authority to the tax payers with a given period.
5. Tax Base: This is the objective upon which tax is paid this may include salary of an employees a profit of a business profession or vacation property of a person or company or interest on investment.
6. Tax Exertion: This is a illegal act of not declaring all or part of a person or business income to the authority for tax assessment purpose. It is an omission or understatement of ones tax liability.

1.7    ORGANIZATION OF THE STUDY 

          For better understanding of this work, the project is divided into five chapters.

Chapter One: This is an introductory chapter in which the origin and meaning of taxation is given it also deals with the aims of the writer in choosing this topic. It also explain the method adopted in gathering information as well as defining some common terms used in taxation

Chapter Two:  This chapter gives the literature review of the topic taxation and revenue generation. It examines the generate principle of taxation in Nigeria.

Chapter Three:  This chapter deals with the research methodology

Chapter Four: This chapter tries to examine the problems which were confronting or militating against the success of taxation in Asa Local government Area wither as a result of attitude of some people, machinery for its collection technical knowledge on the revenue generation.

Chapter Five: In spite of these problems affecting taxation in this local government. It is never without a prospect this chapter therefore discussed this prospect in relation to property rate, motor park fees all well as development and taxes.