THE PROSPECTS, PROBLEMS AND CONTRIBUTIONS OF VALUE ADDED TAX (VAT) TO NIGERIA ECONOMY Case Study of Federal Board of Inland Revenue VAT Office
TABLE OF CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgements iv
Abstract v
Table of Contents vi
Chapter One: Introduction
1. Background to the Study 1
2. Statement of Problem 6
3. Research Questions 11
4. Objective of the Study 12
5. Statement of Hypothesis(es) 12
6. Significance of the Study 14
7. Scope of the Study 16
8. Limitations of the Study 16
9. Definition of Terms 17
Chapter Two: Review of Related Literature
2.1 Introduction 19
2.2 Concept of Personal Income Tax Compliance 20
2.2.1 Factors that may Aect
Personal Income Tax Compliance in Nigeria 27
2.3 Tax Audit and Personal Income Tax Compliance 35
2.4 Tax Rate and Personal Income Tax Compliance 39
2.5 Taxpayers’ Perception of Government and Personal Income Tax Compliance 41
2.6 Taxpayers’ Income and Personal Income Tax Compliance 44
2.7 Taxpayers’ Gender and Personal Income Tax Compliance 45
2.8 Taxpayers’ Attitude to the Tax System and Personal Income Tax Compliance 47
2.9 Theoretical Framework 49
2.9.1 Economic Deterrence Theory 50
2.9.2 Fiscal Exchange Theory 51
2.9.3 Social and Psychological Theory 52
2.10 Further Review of Empirical Studies 55
Chapter Three: Research Method and Design
1. Introduction 75
2. Research Design 75
3. Description of Population of the Study 76
4. Sample Size 76
5. Sampling Techniques 77
6. Sources of Data Collection 78
7. Method of Data Presentation 79
8. Method of Data Analysis 79
Chapter Four: Data Presentation, Analysis and Interpretation
4.1 Introduction 83
4.2 Data Presentation 83
4.3 Data Analysis 88
Chapter Five: Summary of Findings, Conclusion and Recommendations
5.1 Introduction 97
5.2 Summary of Findings 97
5.3 Conclusion 98
5.4 Recommendations 98
References 100
CHAPTER ONE
1.0 Introduction
The implementation of Value Added Tax (VAT) in Nigeria started on 1st January, 1994. VAT is a tax on consumption. it is suffered when a person consume vatable goods and services. The enabling Act is the value added tax act 102 of 1993 (VATA 1993). Before the final introduction of the VAT in January 1994, the idea of introduction VAT in Nigeria came from the report of the study group set up by the Federal Government in 1991 to review the entire Tax system. VAT was proposed and a committee was tax set up to carry out feasibility studies on its implementation. And since introduction, VAT has yielded great revenue to the purse of the government.
