In order to have full access of this Article, please email us on thedocumentco@hotmail.co.uk
TABLE OF CONTENTS
| Subject | Page No. |
| List of Tables & Figures | 4 |
| Acknowledgements | 5 |
| Certificate of Originality | 6 |
| Abstract | 7 |
| Chapter 1 – Background to the Study | 9 |
| 1.1 Introduction | 9 |
| 1.2 Statement of the Research Problem | 11 |
| 1.3 Research Objectives | 12 |
| 1.4 Significance of the Study | 13 |
| 1.5 Scope of the Research | 14 |
| 1.6 Research Methodology | 15 |
| 1.7 Structure of the Dissertation | 16 |
| Chapter 2 – Literature Review | 17 |
| 2.1 The Concept of Taxation | 17 |
| 2.2 History of Taxation in Nigeria | 18 |
| 2.3 The Nigerian Tax System | 19 |
| 2.4 Challenges of the Nigerian Tax System | 26 |
| 2.5 The Tax Culture | 33 |
| 2.6 Introduction to the Tax Culture and Lagos State Tax Reforms | 38 |
| Chapter 3 – Research Methodology | 42 |
| 3.1 Introduction & Background | 42 |
| 3.2 Nature of Research & Research Questions | 43 |
| 3.3 Qualitative Research Methodology | 45 |
| 3.4 The Role of Researcher – Complications | 46 |
| 3.5 Qualitative Methodology of Research – The Concept of Interpretivism | 46 |
| 3.6 Design of Research | 47 |
| 3.7 Case Study Approach | 51 |
| 3.8 Ethical Considerations | 53 |
| 3.9 Limitations of Research | 54 |
| Chapter 4 – Case Study, Discussion & Analysis | 55 |
| 4.1 Case Study – Lagos State Tax Reforms | 55 |
| 4.2 Lessons to Learn from Lagos State Revenue Reform for Extrapolation to Other States | 70 |
| 4.3 Perceived Obstacles in the Way of Tax Reforms by Other Nigerian States | 77 |
| Chapter 5 – Conclusions & Recommendations | 83 |
| 5.1 Important Conclusions | 83 |
| 5.2 Recommendations for Other Nigerian States | 88 |
| 5.3 Recommendations for Further Research on the Subject | 95 |
| Conclusion | 96 |
| References |
LIST OF TABLES & FIGURES
| Subject | Page No. |
| Figure – 1: The Interaction of Subsystems within a Tax Culture | 37 |
| Figure – 2: Flyer to Promote the Tax Self-assessment System | 59 |
| Figure – 3: Impact of IGR on State Government Spending | 66 |
| Table – 1: Lagos State Tax-other IGR Comparisons | 41 |
| Table – 2: Audit Process Transactions & Liabilities | 63 |
ABSTRACT OF THE STUDY
BUILDING A TAX CULTURE IN NIGERIA, The underlying premise of this study is that if the appropriate policies, laws and administrative procedures are put in place, the residents of any state or country would pay taxes. This is evident in the case of Lagos State, one of the thirty-six states of Nigeria, which within 6 years has been able to increase its internally-generated revenue (IGR) by over 400%.
The tax laws in Nigeria have not changed in many years and neither has the economic structure of the states changed significantly enough to make such a huge difference in IGR. Lagos state has hence put in place appropriate structures, policies and procedures aimed at ensuring that a significant number of its residents and citizens pay taxes, not just forcefully but willingly. Therefore, the main objective of this study is to look for ways to build and promote a tax-paying culture among the residents of Nigeria using the success story of Lagos State as the basis of extrapolation, while highlighting the major behavioural determinants and attributes of a compliant tax payer.
The study will aim to evaluate critically those strategies that have contributed to the success of Lagos State, where an all-encompassing tax culture has been built and by doing so, led to a significant increase in the revenue available to the state to improve infrastructures and other amenities. We will also determine the practicality of such measures in other states of Nigeria in a bid to promote a nation-wide tax culture that will not only increase compliance or fill the revenue gap, but will also enhance the faith in the Nigerian tax system while releasing requisite funds for economic prosperity and national growth.
This study should be able to ascertain the status of the Boards of Internal Revenue Service as the revenue collection centres of their respective State Governments by putting in place structures and policies; and also implementing strategies that will ensure collection of the proper amount of tax revenue at the least possible cost. The study will also show that Nigerians are not averse to paying taxes if an appropriate culture is built and complemented with policies and administrative procedures.
CHAPTER 1
BACKGROUND TO THE STUDY
1.1 Introduction of BUILDING A TAX CULTURE IN NIGERIA
The process of building a state is though slow and complex, but is now increasingly being recognized as a necessary and probably a near sufficient condition for effective social and economic development. An effective state requires a social contract between government and its population and tax compliance is a form of this contract. However, this contract is considered to exist between ordinary citizens and the government on a formal basis rather than being based upon trust, as argued by Rothstein (2001), Scholz (2007) and Keen Et al. (1996). These authors also opine that there is a basic expectation of reciprocity in this system as believing that others will not pay their taxes can lead some to withhold their payment; while believing that others will pay their taxes can lead some to pay theirs. However, this reciprocity does not explain why people pay their taxes (Kastlunger, 2011).
Keeping aside the reasons behind payment of taxes for the moment, the aforementioned scenario could ultimately lead to a formal settlement that allows the state to collect taxes without excessive coercion; in return for delivering basic freedoms and essential public services. The state-building approach, therefore, recognizes appropriate and essential taxation as one of the few core capabilities that any state needs in order to function. Furthermore, the effectiveness and efficiency of the Building a tax Culture in NIGERIA imposition and collection systems are considered directly proportional to the strength, capability, prosperity, and legitimacy of the state (Philips, 2008)…
Recent Comments