PROBLEMS OF TAX COLLECTION IN NIGERIA: A CASE STUDY OF UYO LOCAL GOVERNMENT AREA
2.1 Conceptual Framework
Adebayo (a004) defined taxation is the legal demand made by the Federal Government or State government for its citizens to pay money on income goods and services. In a less complex society in which the government has few duties and responsibilities, the financial need of the government are minimal. However, as society becomes complex the need of the people becomes greater and the government assures greater responsibility the financial needs of the government becomes great. Consequently, taxes increase and their effect on the economy becomes more important.
In the past, government has utilized taxation as an instrument of regulating the general economy. Since income tax provide large source of national revenue. Effect on inflation, unemployment and social and economy objective has become the prime consideration in enacting tax law in Nigeria.
Taxation in an aggregate definition is mandatory contribution from the people to generate revenue for the government; use in financial it’s capital project and recurrent expenditure. A renown tax authority in his book “Principle of Public Finance” Dr. H. Dalton define tax as a compulsory contribution imposed by a public authority, in respect of the exact amount of services rendered to the tax payer in return” according to Professor Seligman, a tax is compulsory contribution from a person to the government to defray the expenses incurred in the common interest of all, without reference to special benefit conferred.