AN EXAMINATION OF THE PROBLEMS OF PERSONAL INCOME TAX MANAGEMENT IN ENUGU STATE

ABSTRACT
Since the down of human civilization, every organized which has society used a forms of taxation or another. Which is determined by the limitation imposed by the physical and social environment in which the taxation system is implemented. Facts tell us that no form of taxation involved since human history is without it’s short comings. A taxation Administration  may seen good and efficient within a particular society for a period of time but may not be suitable as the structure of the society changes with time. Hence every tax administration needs continual re-examination or revision in order to accommodate the changes in the society. This is with a view to removing those factors which are likely to cause problems in the taxation administration.  My strongest conviction is that the Enugu environment must be put under investigation and study so that a sound taxation administration could be evolved which would take into recognizance. The  limitations imposed by the Enugu environment. This would ensure that a taxation administration is developed which would at least reduce the problems associated with it.
 
CHAPTER ONE
INTRODUCTION
1.1     Background of the Study
It has been known to every body in the  state, the period of economics boom  of gigantic proportion which was properly nick named as the oil-boom and therefore, a call for the need of increase drive for revenue generation, which has become inevitable now must state has generally intensity their various states in order to supplement  whatever they are able to grab  from the federal government and their own allocation known as share of national cake. This argumentation of federal revenue  allocation by the imposition of taxes on the individuals companies and commodities, if efficiency managed are carried out if will help the state government to remove the shareholder of economic  recessive bondage  which is the main problem disturbing the increased standard of living of individuals anywhere in the world.
Therefore it is the main objective of the study to take critical examination and evaluation of the taxation as a share of revenue for government of Enugu State, and after the analysis the research is declared to find the prevailing problems and therefore a well planned recommendation for the reformation of taxation system is formulated. This term paper is focused it self to the need for increased drive for revenue in the state and problems militating against such optional revenue generation.
1.2     PURPOSE OF THE STUDY
- To check adverse balance of payment, this could be gained by raising tax at all levels higher than is necessary to cover government expenditure, thereby achieving surplus. When operated as PAYE it yield goods amount of revenue to the government because of low cost.
-To prevent home industry by imposing discriminatory  tariffs, provide incentives for industry and investment e.g tax grant or allowance for research work by the government and investments.
-To adjust trade imbalance e.g imposition of prohibitive import duties.
1.3     SIGNIFICANCE OF THE STUDY
It is an all pervading subject which effects the lives of nearly every body and no major accounting problem can be satisfactorily problem can be satisfactorily solved without a consideration of its tax aspects. This is the major sources of revenue for all government  in Nigeria which the officer suppose to come back to the payers in the form of social amenities.
1.4     OBJECTIVES OF THE STUDY
Objective of study are as vic;
1.     To adjust trade imbalance e,g imposition of prohibitive impost duties.
2.     To provide free social services like health and education
3.     To encourage savings and regular expenditure e.g tax on luxuries
4.     To protect home industry by imposing discriminatory tariffs.
5.     To provide incentives for industry and investment e.g tax grant or allowance for research work by the government and investments allowance for prospective investors.
6.     To achieve desirable social end e.g discourage excessive smoking or drinking.
7.     To reduce inequality of incomes, progressive income tax had been imposed by many governments.
8.     To check adverse  balance of payment. This could be achieved by raising tax at all level higher, than is necessary to cover government expenditure thereby achieving budget surplus.
9.     The spirit of civic responsibility amongst the tax payers is heightened by the impositions and payment of direct taxes. Mostly the PAYE. The tax  payer exercises the pride of contributing to the  welfare of the community.
10.    When operated as PAYE, it yields good amount of revenue to the government because of the very low cost.
1.5     SCOPE AND LIMITATION OF STUDY          
Limitation is the ability for instance to pay income tax depends not only on the amount of his income but also on his other personal circumstances. The present system of income tax usually regarded as unified tax is progressive in that the rate at which income tax in charged increased as an individuals income increases as a first step it is necessary to compute the gross amount of his or her income from all sources for the appropriate year of assessment measured in accordance with the provision of the tax acts and to deduct certain amount including personal allowances.