Uduak Nse Thompson

CHAPTER ONE INTRODUCTION 1.1Background to the Study Taxation seems to be the key to state and national development because it provides the funding for government expenditure on programmes aimed at aiding growth and development across all sectors. This is why Taha (2018) stated that regardless of a geographical size, tax has become a dominant factor in both state and country's endogenous growth, either from direct or indirect sources. Taxation is a powerful tool that helps to enhance socio-economic development of any nation be it developed or developing. (Ibadin and Oladipupo, 2015). Abiola and Asiweh (2012) maintained that the function of any reasonable government is to stabilize economy, reallocate income and provide services for the good of the people. For government to meet up with the ever-increasing developmental programmes, it needs to be aggressive in revenue collection. This is achievable through proper tax assessment and administration. In developed and developing countries, there are wide range of taxes and levies, that affect individual and companies, citizens and, foreigners, manufacturers, marketers, workers, and pensioners. In Nigeria, taxes range from petroleum profit taxation to tenement rate imposition, and taxes are imposed at different levels to let the government provide certain essential services and facilities to the population. Some of the issues involved are legal, economic, others are political, sociological, while others are historical. The system of tax collection and administration in Akwa Ibom State has over the years, pointed towards socio-economic objective of the state. Tax collections and administration are important tools that can aid in accomplishment of the state’s socio-economic goal. Tax administration is the process of ascertaining and gathering taxes from individual and corporate entities by the relevant tax authorities in way that provides credibility to equality and impartiality with smallest tax avoidance (Batrancea and Moldovan, 2012). According to Soyode and Ogbonna (2012) tax administration includes the various procedures government adopts in order to plan and executes its numerous programmes for the benefit of its citizenry. Tax administration in Nigeria is the responsibilities of the Joint Tax Board at the federal level, Federal Inland Revenue Service (FIRS) located in various states by the federal government; and the State Internal Revenue service in each state, and the local government revenue authorities with specific tax functions. These bodies are mandated by relevant laws to collect taxes (tax revenue) on behalf of governments for its numerous projects and programmes. Proper tax assessment and administration in Akwa Ibom state should raise the revenue position of the state. Revenue, if well collected has a lot of benefits for both government and its citizens. This assertion is supported by Allan (2012) who opined that an effective revenue collection operation comes through various sources such as improved flow of revenue, improved management of cash, predicting cash capacity, robust interest earnings, non-preferential treatment on taxpayers, efficient budgetary control mechanism, project implementation and completion, among others. Allan (2012) further maintained that there is complexity of revenue collection function due to tax assessment procedures, revenue collection processes, litigation arising from delayed revenues. In order for government revenue to meet up with its expenditure, its revenue may be collected from various sources such as federal exercise taxes, corporate income tax, individual income tax, borrowing, interest earnings, custom duties, fees and charges. However, it is one thing to collect revenue, it is another to be able to manage and administer it very well. 1.2Statement of the Problem In Nigeria, tax collection and administration are said to be the most variable source of revenues to the nation and therefore foster the economic development of the nation. It is also difficult to ascertain what impact or effect it has, if any. Does tax collection and administration have to do with developing the economy considering greater diversities in government management abilities? Tax revenue is the money collected by government from various sources which includes levies, pay as you earn, rents, property transfer, social security contributions. Every state in Nigeria has its procedures of tax assessment collection and administration. The aim of tax assessment and administration is for the purpose of raising adequate revenue. Akwa Ibom state has its procedures of tax assessment whose aim is to derive more revenue. However, over the years in the state, it appears that tax assessment and collection procedures adopted by the relevant tax authorities have not yield adequate revenue from the developmental projects seen around. However, no matter how huge revenues are collected from various sources, without effective and efficient tax administration, the whole system may become a mirage. When revenues are collected as well as effectively administered, there may be good performance. In the realization of government responsibility to her citizenry, funds are seen to be inadequate, that is why Odusola (2016) stated that huge amount of revenue accruable from taxes appeared not sufficient compared to its expenditure over the years. It is on this note that the present study is conducted. 1.3Objectives of the Study The main objective of the study was to examine the role of tax assessment collection and administration in Uyo, Akwa Ibom State. The specific objectives of the study were to: i.determine the effect of tax assessment collection and administration on the level of development in Uyo, Akwa Ibom State. ii.examine the adequacy of various income tax rules and regulations in Uyo, Akwa Ibom State. iii.ascertain the effect of tax assessment on revenue yield in Uyo, Akwa Ibom State. 1.4Research Questions The following research questions were drawn from the objectives of the study as stated below: i.What is the effect of tax assessment collection and administration on the level of development in Uyo, Akwa Ibom State? ii.What are the various income tax rules and regulations in Uyo, Akwa Ibom State? iii.How does tax assessment affect revenue yield in Uyo, Akwa Ibom State? 1.5Hypotheses of the Study The following hypotheses were formulated from the objectives of the study and stated in null forms: Ho1:Tax assessment collection and administration does not raise the level of development in Uyo, Akwa Ibom State significantly. Ho2:The various income tax rules and regulations are not adequate in Uyo, Akwa Ibom State. Ho3:Tax assessment does not affect revenue yield in Uyo, Akwa Ibom State significantly. 1.6Significance of the Study It would provide the necessary information about how taxation implication on effect of economic development should be managed and controlled. It would also help the potential investors to remedy the problems associated with taxation of corporate income. This study would also be of benefits to the tax experts in Uyo local government. It would also be of relevant to other researchers who wish to undertake a study in this area of interest. 1.7Scope and Limitations of the Study The scope of this study was centered in one local government council, Uyo Local government council with effect of tax assessment collection and administration methods in Akwa Ibom State. On the cause of this study, the following were observed by the researcher to be the limitations of this study and these were: uncooperative attitude of some of the respondents, inadequate journals on the subject matter, time and financial constraint. 1.8Organization of the Study The study was in five chapters. In chapter one, the background of the study, statement of the problem, research objectives and questions, hypotheses, significance of the study, scope and limitations as well as operational definition of terms were presented. Chapter two addressed the review of related literature in three main headings: conceptual review, theoretical review and empirical review. Chapter three covered the methodology of the study. This includes the research design, population and sample of study, sampling technique, sources of data, model specification, description of variables as well as data analysis technique. Chapter four was for data presentation, analysis and discussion of the findings. Chapter five summarized the study with conclusion and recommendations. 1.9Definition of Terms The researchers made use of the following relevant keywords as defined below: Administration: Tax administration is the process of determining and gathering taxes from individual, individuals and corporate organizations by the relevant tax agencies in manner that gives credence to fairness and objectivity with minimum tax elusion. Assessment: This is defined as the process of evaluation and valuation of individuals and properties for taxation purpose. Economic Development: This is defined as improvement in material welfare especially for a person with low income. Income Tax: Income is defined as amount of found goods or services, received by an individual cooperation or economic in a given period. Taxation: Taxation is the means by which government or the relevant tax authorities impose tax on its citizens and business entities. Tax Authority: This is defined as an individual whose duty is to assess and collect taxes. Tax Evasion: This is defined as a deliberate act by a taxpayer to illegally reduce or totally escape his or her tax liabilities and relevant tax duties. Tax Sharing: Is defined as a practice whereby the level of government such as state levies tax and share the proceeds with a lower level of government such as country or town. CHAPTER TWO REVIEW OF RELATED LITERATURE The review of related literature was carried out under three sub-headings known as conceptual review, theoretical review and empirical review. 2.1 Conceptual Review Under the conceptual review, the researcher examined the following such as overview of tax administration, legal structure for effective tax administration, importance of tax administration, tax administration challenges, efficiency of tax administration, improve tax administration, service commitments of tax administration, tax assessment, procedures for tax collection, strength of tax authorities in administration and tax revenue collection process. 2.1.1Overview of Tax Administration Tax administration refers to the identification of tax liabilities based on the existing tax law, the assessment of this liabilities and the collection, prosecution and penalties imposed on recalcitrant taxpayers (Abiola and Asiweh, 2012). Tax administration, therefore, covers a wide area of study, encompassing aspects such as registration of taxpayers, assessments, returns processing, collection, and audits. The low revenue yield of taxation can only be attributed to the fact that tax provisions are not properly enforced either on account of the inability of administration to cope with them or on account of straight forward collusion between the tax administration and taxpayers. Since taxes are an involuntary payment for government services, taxpayers have a strong inventive to minimize their tax liabilities either through avoidance (legal) or through evasion (illegal) (Adebisi and Gbegi, 2013). Tax administration has to secure compliance with the laws by applying an array of registration, assessment and collection procedures. A government can keep taxpayers from doing these activities, and thus successfully avid tax evasion depends on the nature of economy’s actual tax base (Agbonika and Disu, 2012). Tax administration, therefore, should aim at improving on laws regarding the registration, assessment, collection revenue, and exploiting fully taxation potential of a country. Tax administration is the process of determining and gathering taxes from individual, individuals and corporate organizations by the relevant tax agencies in manner that gives credence to fairness and objectivity with minimum tax elusion (Kiabel, 2011). Tax administration is the process of using tax collected from different sources are widely used in such a way that what is collected is efficiently and effectively used with minimum wastage (Kiabel, 2011). It also involves the productive use of taxes for meaningful development. Akeju (2018) stated that the essence of administration of tax is taxpayers to comply with relevant tax agencies for maximum compliance as part of their tax obligations to government. A good tax Administration deals with gathering, processing, and using gathered information in the most efficient and effective manner (Akintoye, 2013). The problems of tax administration in Nigeria seem various. This is why Akintoye and Dada (2012) stated that problems of tax administration in Nigeria include tax payers’ ineptitude, corruption, unqualified tax personnel, government laissez-faire attitude, lack of supervisory competence, inadequate information administration system, non-release of PAYE deductions and tax elusion or escaping. Akeju (2018) stated that the tax administration problems arise majorly in the assessment of self-employed taxpayers such as contractors, businessmen, entrepreneurs, doctors and craftsmen who make up the informal sector. It presupposes that a well-articulated tax administration is germane to tax method built on a strong footing. 2.1.2Legal Structure for Effective Tax Administration The legal rules required for effective tax administration might be categorized under four broad headings: i.Rules for the establishment of an individual’s tax liability ii.Rules establishing a system of appeals from the initial assessment of tax iii.Rules for the collection of taxes that have been established to be owing iv.Rules relating to tax offences and their punishment. The importance of a sound legal structure for effective tax administration and the importance of incorporating principles that will further tax compliance in the design of that legal structure. Since each stage of the administrative process is dependent upon the other, to achieve a significant improvement in the overall effectiveness of the tax administration each element of the legal structure needs to be designed for maximum effectiveness (Allain, 2016). In addition to the legal structure for tax administration, obviously, the organizational structure of the tax administration is also of crucial importance. According to the Appah (2010) the range of issues that must be resolved, in this regard, include: i.Agreement of autonomy from the executive branch ii.Accountability to legislative assembly iii.Relationship to the ministry responsible for the tax legislation iv.Type of organization structure in relation to taxes administered v.Decentralization vi.Personnel policy vii.Policies for internal audits viii.Mission statement and strategic plan 2.1.3Importance of Tax Administration According to Akintoye and Tashie (2013) tax administration dictates tax policy. Indeed, tax administration and compliance issues and determine the broad evolution of tax systems. The shift in industrialized countries over a century ago from reliance on excise, customs and property taxes to corporate income and progressive income taxes can be explained in large part by the relative decline in the rural sector the concentration of employment in large corporations and the growing literacy of the population (Bayar and Ozturk, 2018). In recent years, the shift away from these taxes-corporate income and progressive individual income tax-and toward tax systems that rely more on broad-based consumption taxes such as the value-added tax. Flatter rate structures and the adoption of “dual income taxes,” in which a progressive tax on labour income is accompanied with a low flat-rate tax on capital income, as adopted in certain Scandinavian countries, can be explained, in large part, by the forces of globalization and developments in financial innovation and the inability of tax administrators to develop technologies to cope with these forces and developments (Benson, 2019). In tax reforms there is a close correlation between successful tax policy and efficient tax administration. In other words, there is no good tax policy without efficient tax administration (Birds, 2015). Over the past century, changes in the size of governments themselves, and differences in the relative size of governments around the world, can be explained by changes and differences in the environment, resources and technologies available to the country’s tax administrators (Bhartia, 2019). Aside from the role of tax compliance and administrative issues on the evolution and general features of the tax system, there is no question that administrative considerations influence, and often impose decisive limits on particular tax laws. Most obviously, the failure to tax all sources of economic power, such as the imputed rental value of homes or accruing capital gains, are often justified by reference to practical concerns of administrability. It is futile to design a complex and sophisticated response to a tax policy problem if the rules to implement the regime cannot be administered (Chase and Reveal, 2013). The underground economy has always been diverse and even vaster than these examples suggest (Damayanti, 2015). However, as if these traditional forms of tax evasion were not challenge enough, the combined effects of information technology and globalization is now alleged to allow those who have been able to hide in the shadow economy to evade paying their fair share of tax to disappear altogether. Many individuals are no longer tied to one national jurisdiction. Those that are increasingly receive payments from work and investment abroad; anyone can have access to an over sea’s bank; anyone with access to a computer can transact business anywhere in the world; property is becoming increasingly intangible and consumption difficult to locate; and, capital is becoming increasingly fungible and can be shifted relatively easily between jurisdictions. These and other developments are said to call into question governments’ continued ability to levy taxes in a world in which companies, assets and people are infinitely mobile (Eiya, Illaboya and Okoye, 2016). Tax administrators face a formidable number of challenges in every country. According to Dauda and Saidu, (2014) in many developing countries tax administration reforms are needed simply to achieve macroeconomic stability. In countries with economies in transition there is a need to establish a tax administration that can respond to the demands of a growing market economy and the resulting increase in the number of taxpayers. Moreover, there is the need to establish the legitimacy of tax collection (Fagbemi, Uadiale and Noah, 2010). In all countries tax administrators face the challenge of modernizing the tax administration so that it can operate effectively in an increasingly global economy. In spite of these challenges, several countries’ recent experiences in improving the effectiveness of their tax administration have shown that fundamental reform is possible. In recent years, there has been a considerable amount of study on the steps that should be taken to improve tax administration and reform (Feld and Frey, 2016). 2.1.4Tax Administration Challenges The efficiency of a tax system is not determined only by appropriate legal regulation but also by the efficiency and integrity of the tax administration. In many countries, especially in developing countries, small amounts of collected public revenue can be explained by either incapability of the tax administration in realization of its duty, or with some degree of corruption. Regardless of how carefully tax laws have been made, they could not eliminate conflict between tax administration and taxpayers. Tax administration with a skilled and responsible staff is almost the most important precondition for realization of tax potential of the state. It is generally known that tax laws and tax policy are as good as good is the tax administration (Ibadin and Oladipupo, 2015). Tax administrators face a formidable number of challenges in every country. In many developing countries tax administration reforms are needed simply to achieve macroeconomic stability. In countries with economies in transition there is a need to establish a tax administration that can respond to the demands of a growing market economy and the resulting increase in the number of taxpayers. Human resource is essential in tax administration. Trained personnel are what actually most developing countries lack and this forced them for instance, to organize their activities under the existing tax administration structure. During the past decade, diverse developing countries have introduced radical reforms in their collection of taxes. In more than fifteen (15) countries, traditional tax departments have been granted the status of simultaneous revenue authorities, which are designed with a number of autonomy-enhancing features, including self-financing mechanisms, boards of directors with high-ranking public and private sector representatives, and generic personnel systems (Ihendinihu and Nmedirionye, 2016). All transition countries had a very huge fall of GDP, which with serious limitation of tax administration, resulted in an alarming revenue gap. Moreover, in all countries, revenues from taxes collected from big, mostly state firms, declined and were not replaced with increased taxes collected from private, mostly small enterprise. This has created pressure to increase tax rates and introduce new very often ad hoc taxes. These diversities, which are called patches in the tax system are to a great extent a result of the inefficiency of the tax administration in collecting the existing taxes (Kajola, 2011). This situation would lead to a permanent need for new taxes changes in the tax system and almost never-ending tax reforms. In transition countries income tax is gaining on importance. Taxpayers are not used to this form of taxation and when they are faced with it for the first time; they will obviously regard it as a burden. As Kanbiro (2018) explained the citizens in these countries are not used to paying taxes at all. The tax administration and bodies which produce political decisions have to foresee the attempts to evade taxes and have to design a tax system that will not question the loyalty of its citizens. Most developing countries continue to face serious problems in developing adequate and responsive tax systems (Nwocha, 2017). No matter what any country may want to do with its tax system, or what anyone might think it should do from one perspective or another (ethical, political, or developmental), what it does do is always constrained by what it can do. In economic structure, administrative capacity and political institutions all limit the range of tax policy options (Ogbueghu, 2016). Heavy tax distortions in transition economies come from various sources. First, base rates are often high. In transition economies with many fledgling small enterprises and weak tax administration, high tax rates are likely to encourage already widespread tax evasion and participation in informal economy. Second, many countries still rely heavily on payroll taxes to finance social expenditures. If payroll taxes are levied mainly on employers (as is the case in the great number of transitional economies) this can discourage entrepreneurial efforts, disincentive formal hiring and push economic activity underground. Third and as world bank estimations as the most important, the many exemptions and special tax rates in parts of the economy often coexist with higher tax rates on other activities, undermine revenue performance, complicate tax administration and distort revenue allocation. The key precondition for efficient tax administration is tax structure with minimizing distortions, strictly tax exemptions and elimination of the differences in tax treatment of particular parts of economy (Oloidi and Oluwalana, 2014). This will mean extending the VAT to all but a few goods and services (notably export, which should be zero-rated, and banking and insurance services, where it may be difficult to determine the amount of value added to be taxed). 2.1.5Efficiency of Tax Administration The key precondition for efficient tax administration is tax structure with minimizing distortions, strictly tax exemptions and elimination of the differences in tax treatment of particular parts of economy. This will mean extending the VAT to all but a few goods and services (notably export, which should be zero-rated, and banking and insurance services, where it may be difficult to determine the amount of value added to be taxed) (Olokooba, 2018). Badly conceived or unnecessarily complicated tax structure greatly complicates the operating function of the tax administration, while simple and transparent tax structure could affect it in the opposite way. So, the increase of efficiency of the tax administration could be attributed mainly to the simplification of the tax system. Tax administration cannot change legislation as a means for improvement of tax structure but could propose necessary changes in laws that can improve tax structure and /or could aid in application of the law (Omodero, 2019). Effective tax administration in a market economy is based on voluntary compliance by a large number of decentralized taxpayers (Onoja and Iwarere, 2015). Most transition economies have only recently started to address compliance issues and build up a modern tax administration with better overall revenue performance. A first step is restructuring how the work is organized. In transitional countries, tax administration can be organized respecting the functional principle (collecting, recording, auditing, and enforcement) according to the type of taxpayers; the type of taxes; and type of enterprises in economy. Tax administration should develop around activities (such as recording or auditing) as in Hungary, rather than according to the type of tax and taxpayers (Worlu and Emeka, 2012). More generally, tax payment needs to be assessed, collected and recorded more efficiently. Current procedures are rarely up to the job of dealing with a growing number of taxpayers, many of which-particularly private businesses and service enterprises are tricky to tax at best. The government might start by assigning an identification number to all taxpayers, focusing its efforts on large taxpayers who generate the bulk of revenue, and withholding wage tax at the source. This, however, does not mean that results of successful monitoring of large taxpayers can be excused for neglecting medium and small taxpayers. This can lead to the decrease of their compliance, resulting with lower total revenue. Next should be improved auditing and follow-up actions against those who fail to file returns or make payment. Latvia, for example, has issued regulations for an improved taxpayers' register: every taxpayer must register with the State Revenue Service; financial institutions will not be allowed to open accounts for any business or individuals without a taxpayer code (Vance, Lowry and Eggett, 2015). Most transitional economies are in the midst of a comprehensive reform of their government (that include the tax administration) and tailor them to the changing needs of a market environment. In that task they can use the experiences from West European countries and from countries that have recently realized tax reforms as a stepping stone to further development and/or as a challenge and incentive for reaching a higher level of efficiency and success (Taha, 2018). The reform of tax administration in these countries is a part of a complete transformation of public administration, so there are no reasons to be too optimistic about the speed of change and about expected results (Soyode and Ogbonna, 2012). Nwocha (2017) posited that under the current Nigerian law, tax revenue is enforced by the three tiers of government, that is Federal, State, and Local Government Area with each having its sphere clearly spelt out in the Taxes and Levies (approved list for Collection) Decree, 1998. Successive governments have expressed concern about the low level of productivity of the Nigerian tax system (Ogbueghu, 2016). This has been attributed largely to the deficiencies in the tax administration and collection system, complex legislation, and apathy, especially on the part of those outside the tax net. This is because as a means of meeting expenditure requirements, many developing countries undertook tax reforms in the 1980s. However, most of these reforms focused on tax structure rather than tax administration geared towards generating more revenue from existing tax sources. In the words of Onoja and Iwarere (2015) the Nigerian tax system has undergone several reforms geared at enhancing tax administration with minimal enforcement cost. The recent reforms include the introduction of Taxpayer Identification Number (TIN), which became effective in February 2008, Automated Tax System that facilities tracking of tax positions, E-payment system which enhances smooth payment procedure and reduces the incidence of tax touts, enforcement scheme which engages special tax officers in collaboration with other security agencies to ensure strict tax compliance. Section 8(a) of Federal Inland Revenue Service Establishment Act 2007 has led to an improvement in the tax administration in the country, thus, the integrated tax offices and authorities now have autonomy to assess, collect and record tax. Despite this improvement, there are still a number of contentious issues that require urgent attention such as appropriate tax authority to administer taxes, the issue of multiple taxes administered by different levels of government which sometime imposes welfare cost and unavailability of data base, which contributes to tax avoidance in the country (Sasunova, Sulikova and Szarkova, 2017). The issue of corruption is perennial to the country and reduces the confidence and trust reposed on government by the taxpayers to discharge their civic duty. The issue of infrastructural deficit is crucial, and most facilities are often privately sourced, hence, taxpayers always question the rationale behind tax collection and consequently, develop a tendency to evade tax payment (Taha, 2018). 2.1.6Improve Tax Administration In reform of tax administration and the importance of tax structure is clearly reflected, because tax administration and tax structure are interconnected and they have to be improved simultaneously in the tax reforms (Oloidi and Oluwalana, 2014). Reaping revenues from tax rate changes (whether up or down) requires effective tax administration. Raising revenues through base expansion requires even better administration. New taxpayers must be identified and brought into the tax net and new collection techniques developed. Such changes take time to implement. The best tax policy in the world is worth little if it cannot be implemented effectively. What can be done to a considerable extent inevitably determines what is done. One cannot assume that whatever policy designers can think up can be implemented or that any administrative problems encountered can be easily and quickly remedied. How a tax system is administered affects its yield, its incidence, and its efficiency. Administration that is unfair and capricious may bring the tax system into disrepute and weaken the legitimacy of state actions. Good tax administration is a difficult task even at the best of times and in the best of places (Pedley and McCluskey, 2019). Conditions in few developing countries match these specifications. How revenue is raised, the effect of revenue-generation effort on social capital, equity, the political fortunes of the government and the level of economic welfare - may be more important from many perspectives than how much revenue is raised. The private costs of tax compliance as well as the public costs of tax administration must be taken into account. Assessing the relation between administrative effort and revenue outcome is by no means simple (Odusola, 2016). It is important, for example to distinguish the extent to which revenue is attributable to the active intervention of the administration rather than its relatively passive role as the recipient of revenues generated by other features of the system (Ogbueghu, 2016). Improving administrative efforts and outcomes is not impossible but it is neither easy nor quick. 2.1.7Service Commitments of Tax Administration The tax administration should provide impartial and professional courteous service and must keep private and confidential information regarding the individual taxpayers. It should also offer clear, understandable and current tax information and will make this information available to taxpayer through various media and provide timely, accurate written information that one can rely on to questions and requests for tax information (Nwocha, 2017). Education and information programs on specific tax issues should be arranged with taxpayers to enhance their awareness and taxpayers should be allowed to voluntarily disclose their tax situation without incurring a penalty or being prosecuted for tax violations under certain conditions (Onyegbule, 2016). 2.1.8Tax Assessment The main purpose of assessment of tax is to guarantee that every taxable person within the framework of the law are properly assessed to avoid discrepancy and with minimal leakages (Odusola, 2012). It is of note that payment of tax is classified into individual/enterprise, usually sole proprietorship or self-employed, partnership, corporate organizations, limited liability companies by shares, as well as unlimited liability companies by guarantee. Tax assessments are based on profit status of organizations arising from trade in a given time frame. The assessment may either be self, government, taxpayers’ returns or minimum tax bases (Okoye, Akenbor and Obara, 2012). In tax self-assessment system, individuals and corporate organizations are expected to fill their tax rebate forms as accurately as possible before specified period. Any violation of tax laws is penalized in accordance with relevant statute. A taxpayer is required to attach verifiable proof of payment to tax issuing authorities within a two-month frame within which to settle the assessment (Chase and Reveal, 2013). However, any individual or corporate organization who files their assessments as at when due and attaches evidence of payment may be granted a waiver to pay the remaining tax due on instalments for a five-month period starting from the month following the date of payment (Dauda and Saidu, 2014). A tax assessor is responsible for preparing and maintaining the assessment roll, the tax roll and collecting the tax levies in accordance with the quality standards (Baghedo, 2012). The core service responsibilities include: i.Preparing annual market value assessments for all properties. ii.Preparing the business assessment valuations for all business premises. iii.Maintaining accurate property information and ownership on all realty accounts. iv.Maintaining accurate business information and ownership on all business accounts. v.Defending assessments before municipal and provincial assessment tribunals. vi.Responding to inquiries and requests for information related to assessment and taxation. vii.Producing and mailing annual assessment and tax notices to taxpayers. viii.Reporting assessment rolls and meeting annual audits. 2.1.9Procedures for Tax Collection It is expected that people’s tax payments should be in line with their income and they are required to pay a tax in proportion to their level of income. On the other part of the tax collectors, collection of tax should be time conscious and convenient and the cost of collecting the taxes should not be high to discourage business. Alternatively, this means that the ideal tax system in developing countries should raise essential revenue without excessive government borrowing and should do so without discouraging economic activity and without deviating too much from tax system in other countries (Akintoye and Tashie, 2013). The procedures undertaken by tax authority to ensure compliance are discussed as follows. i.Identification and Registration of Taxpayers: Tax Identification Number (TIN) is used to identify taxpayers. Every taxpayer has a unique TIN, which he or she is supposed to use in all his or her correspondence with the tax authority and no taxpayer should have more than one TIN. In countries like Uganda, they issue TIN free of charge upon the taxpayer completing a TIN application form (Adedoyin and Adekanmi, 2016). ii.Filing Returns: Taxpayers are required to file returns within specified months of the end of their tax accounting year. The return should be filed in quadruplicate and should contain all the particulars of the taxpayer. All documents respecting taxation should be presented to the tax authority office where the taxpayer has their file. iii.Returns Processing: Upon receiving a taxpayer’s return, the tax authority officers examine the accuracy of the return by determining whether the return is properly completed, whether tax has been properly computed, and whether there are any penalty payments to be made by the taxpayer (Abiola and Asiweh, 2012). The officer then allocates an assessment number to the return and issues the taxpayer with a bank payment advice form and stating the tax payable. iv.Payment of Taxes: Taxes are due on the due date of the submission of the self-assessment returns. Tax should be paid to an authorized bank, using the bank payment advice form (Adedoyin and Adekanmi, 2016). v.Audit and Examination: The role of tax audits and examinations is to check the accuracy of the information that taxpayers provide to tax authorities (Alabede, 2014). The audits range from simple field and desk audits to comprehensive audits. vi.Collection and Enforcement: When the taxpayer has not made payment on the due date, and does not object to the tax assessed, tax authority can enforce payment in a number of ways. The commissioner may bring a suit against the taxpayer or request a person owing or holding money for the taxpayer to pay the money on a specified date or institute distress proceedings against the taxpayer’s moveable property (Appah, 2010). In a wider context, the issue of enforcement includes offences committed by the taxpayer and the penalties for these offences. In general, the discussions so far focused on the review of the literature on the theoretical aspect of tax administration. 2.1.10Strength of Tax Authorities in Administration According to Baghedo (2012) no tax will work effectively, unless its administrators maintain an aggressive attitude with respect to the correctness of the taxpayers’ actions. Some taxpayers will fail to file or make mistakes through ignorance or neglect. Others will deliberately cheat. A passive attitude by the authorities towards these errors and falsifications will soon undermine the entire structure, since the diligent and honest taxpayers will almost in self-defence be forced to the level of the careless and dishonest. A tax administration which seeks compliance must protect those who comply, or else compliance will not be forthcoming. Enahoro and Olabisi (2012) further stated that the sure sign of ineffective tax administration is the presence of a very large delinquency in tax payments for it indicates the lack of taxpayer respect for the tax system. The taxpayer in effect is acting on his belief that the administrative machinery may bark, but that it has no bite (Dauda and Saidu, 2014). It had been argued that in the whole, the solution for the large delinquency lies in providing the bite. In this sense effective tax collection is a facet of the larger problem of providing adequate penalties, to which reference will later made. In other words, tax is evaded to the extent that tax authorities are perceived as weak by taxpayers. A tax system does not function in a vacuum. Its relationship with at every turn is with the public and since the combination of taxes reaches nearly every individual in one way or another, the administration finds itself dealing with the nation as a whole. Hence, inevitably its operations and effectiveness are affected by the attitudes of the nation towards the tax system (Ihendinihu and Nmedirionye, 2016). But while tax administration is thus affected by these national attitudes (Kanbiro, 2018). It is equally true that the attitudes can in turn be affected by tax administration. Rational and efficient procedures, higher personnel standards, better management, improvement in relation with the public and in the daily contacts between tax official and taxpayer, can operate to increase the public respect for the tax administration. Moreover, once the tax administration has been placed on a sound basis, it is in a position to assert that compliance must be forthcoming (Mohammed, Chek and Idawati, 2017). Such an assertion would hardly be tolerated or even taken seriously, as long as tax officials were themselves inefficient and corrupt. But if the administration has brought stability and honesty to its own operations, the self-respect thus achieved can form the foundation for its demand of respect and compliance from the taxpayer. Layira, Chukwuma and Asian (2012) stated that tax systems that depend on ad hoc administrative procedures rapidly become discredited and endanger compliance. To encourage compliance, it is equally important that tax authorities administer the law fairly. This implies both an absence of arbitrary or corrupt behaviour on the part of the officials, and “normative standards” to ensure that the same laws are applied and administered in a standard fashion across the board. 2.1.11Tax Revenue Collection Process Revenue collection generally relates to a government agency's actions to collect outstanding financial obligations from the public. Revenue might come from a variety of sources: taxes, license fees, fines or use of state facilities (Onyegbule, 2016). Campbell (2019) stated that revenue collection frequently refers to a government agency billing the public or a member of the public for fines, taxes or any other fees. Taxpayers’ perception of the use of tax revenue has been identified as one of the major factors that influence tax collection process. According to Onoja and Ewarere (2015) an average Nigerian has no trust in government and is not encouraged to entrust his resources, hence, payment of taxes is ranked among the least obligation they owe to the government. This is because taxpayers perceive that tax revenue collected is used to cater for the needs of government functionaries and their close associates rather than the needs of taxpayers (Dauda and Saidu, 2014; Nwocha, 2017). Whenever tax revenue is not properly utilized for the benefit of the citizenry, it creates mistrust between tax authority and taxpayers (Adedoyin and Adekanmi, 2016; Nwocha, 2017). Leyira, Chukwuma and Asian (2012) assert that the Nigeria tax system has faced a lot of challenges over the years which has impacted the tax revenue collection and hampered national development. According to them, some major problems that have given rise to low tax revenue yield over the years include: poor information management system, poor record keeping and data preservation by tax administrators, complex and cumbersome tax laws, corruption and leakages in the administrative system.; poor and irregular monitoring and compliance visits, Irregular tax assessment, poor inter-agency interface and synergy approaches, Inability to bring the informal private sector into the tax net. As such, Odusola (2016) is of the view that, the quantum of revenue generated from taxes over the years by the government is grossly insufficient in relation to the ever increasing social, political and infrastructural developmental needs of the country. A number of factors are responsible for tax revenue loss in Nigeria, which may include tax fraud, non-tax compliance, wastages of public fund, corruption in tax administration. These are discussed below: i.Tax Fraud: Allain (2016) opined that tax deception is when individuals or corporate organizations intentionally falsify vital information on their tax returns with the intent to deceive tax authority to reduce tax liability. Nwocha (2017) stated that when a breach of duty is achieved through deception such that it prevents an accurate determination of tax amount, leading to loss of revenue, then tax fraud is manifested. Oloidi and Oluwalana (2014) described tax fraud as a form of intentional tax avoidance characterized as an economic behaviour of taxpayers which results in leakage in tax liability. ii.Non-Tax Compliance: Non-tax docility is the extent taxpayers fail to oblige with the tax statutes. It is considered as a major issue facing tax administration and revenue generation (Odusola, 2016). Several previous literatures have over the years indicated so many factors of non-tax compliance including economic, socio-psychological and demographic which come to play in determining taxpayer’s compliance decision. If taxpayers know what they are paying for, their attitude towards tax compliance will change. Onoja and Iwarere (2015) believed that the quantum of tax revenue generated by government for its expenditures is dependent on the taxpayers’ willingness to abide with the tax authorities’ demands. iii.Wastages of Public Funds: According to Pedley and McCluskey (2019) wastages of public funds are evident in inflated contract prices, paid but unexecuted contracts, and other criminal methods employed to deplete funds appropriated to Ministries, Departments and Agencies (MDAs). It is only expected that a taxpayer who sees his contribution being misused or converted by top public officials will question the need for further compliance. This ultimately reduces the funds available to government for the implementation of its programmes. iv.Corruption in Tax Administration: Besides the weakness in tax administrative system, high level of corruption among tax officials creates an opportunity for taxpayers to engage in tax malpractices (Agbonika and Disu, 2012). According to Adedoyin and Adekanmi (2016) this has remained an insurmountable problem in the Nigerian tax system. Taxpayers may consider eluding paying taxes when the cost of giving bribe is to tax officials is far less than the amount to be remitted to government. Most tax officers and administrators have been criticized of diverting a huge percentage of tax funds into their private coffers by colluding with taxpayers who negotiate for the payment of lesser tax, thus leading to lower tax revenue available to the government (Nwocha, 2017). Omodero (2019) considered this as a bilateral evasion as taxpayers collaborate with tax officials and offer them bribes to be exempted or under-assessed. 2.2Theoretical Review The expediency theory was reviewed and adopted in the present study as stated below: 2.2.1Expediency Theory The expediency theory, according to Otu and Adejumo (2013) argued that every tax proposal normally passes the test of practicality and is the only consideration for government authority to choose a tax policy and assessment criteria. This theory which is embedded in the canon of taxation which explains the economy, effectiveness and efficiency of tax collection instruments (Adudu and Simon, 2015). Taxation provides a powerful set of policy tools to the authorities and should be effectively used for remedying economic and social ills of the society such as income inequality, regional disparities, and unemployment (Afuberon and Okoye, 2014). Economic and social objective of the state is to put in place an effective tax system which should be relevant to the economic growth of a nation (Benyin and Ugochukwu, 2015). Worlu and Emeka (2012) added that this proposition has a truth in it, since is useless to have a tax system which cannot be levied and collected efficiently. Since there are pressures from economic, social and political groups and every group tries to protect and promote its own interests, hence, the authorities are often forced to reshape tax structure to accommodate these pressures. In addition, the administrative set up may not be efficient to collect the tax revenue at a reasonable cost. Fjeldstad (2013) posited that taxation provides a powerful set of policy tools to the authorities and should be effectively utilized for remedying economic and social disturbance in the society such as income inequalities, regional disparities, unemployment, cyclical fluctuations (Vance, Lowry and Eggett, 2015). For this reason, this theory was adopted in the present study. 2.3Empirical Review The following previous studies in this area of interest were reviewed and they were: Stoilova and Patonov (2012) studied taxation and economic growth of European Union countries with the means of the regression analysis. They found out that direct taxes are more efficient in supporting economic growth in EU countries. Fjeldstad (2013) reviewed taxation and development with focus on experiences of donor support to strengthen tax systems in developing countries. The study revealed that the challenge for many developing countries is not only to increase the tax to GDP ratio but to tax a larger number of citizens and enterprises more consensually and to encourage constructive state-citizen engagement around taxation. Abata (2014) studied the impact of tax revenue on Nigeria economy used descriptive survey design and chi square to analyse the data collected. The study found that tax revenue significantly impacted on federal government budget implementation in Nigeria, tax evasion significantly affected government revenue in Nigeria, and lack of training on the part of tax officers significantly affected the generation of government revenue in Nigeria. Edame and Okoi (2014) examined the impact of taxation on investment and economic growth in Nigeria from 1980 to 2010 using the ordinary least square method of multiple regression analysis to analyse the data which were sourced from the CBN statistical bulletin. The result of the analysis conformed to prior expectation because the parameter estimates of Company Income Tax have an inverse relationship with economic growth. Finally, the result showed that taxation is negatively related to the level of investment and GDP and is positively related to government expenditure in Nigeria. The study also observed that taxation is statistically significant factor influencing investment, GDP, and government expenditure in Nigeria. Ihenyen and Ebipanipre (2014) examined taxation as an instrument of economic growth in Nigeria. Using annual time series data sourced from the CBN statistical bulletin between 1980 and 2013. A linear model of corporate income tax, value added tax and economic growth were estimated by using the OLS technique. The empirical result suggested that the hypothesized link among corporate income tax, value added tax and economic growth indeed exist in the Nigerian context. Thus, the result offer tantalizing evidence that taxation is an instrument of economic in Nigeria. This conclusion points to the need for additional measures by government in ensuring that taxpayers do not avoid and evade tax so that income can be properly generated there from it. In addition, regulatory authorities charged with the sole responsibility of collecting tax should further be strengthened to enforce compliance by taxpayers. Above all, the tax collected should be properly distributed so that economic growth can be properly harnessed. Adudu and Simon (2015) studied tax policy on economic growth in Nigeria with use of Granger causality co-integrations framework and disclosed that efficient tax reforms are necessary conditions for enhanced sustainable economic growth. Chigbu and Njoku (2015) studied taxation and Nigerian economy with the use of co-integration test. The study showed that even though that long run relationships exist between the variables, there is no significant effect of taxation on the economy of the country. Gbato (2017) studied the impact of taxation on the long-term growth and revealed using error correction model that there existed a zero effect of taxation on long term growth, whereas in the short run there exist a significant effect of the explanatory variable on the explained variable. Onakoya, Afintinni and Ogundajo (2017) investigated the impact of taxation on economic growth. Using generalized least square, the study indicated that tax revenue is significant on economic growth in Africa. Dladla and Khobai (2018) investigated the impact of taxation and economic growth with the use of Auto-Regressive Distribution Lag (ARDL) approach. The study disclosed that in South Africa, there was a negative relationship between taxes and economic growth. Durusu-Çiftçi, Gökmenoğlu and Yetkiner (2018) studied heterogeneous impact of taxation on economic development with the use of panel co-integration. Out of the explanatory variables utilized in their study, only consumption taxation had a statistically significant impact on the steady-state level of GDP per capita. Harelimana (2018) examined the role of taxation on resilient economy and development of Rwanda and found out that there was a significant relationship between taxation and economic development in Rwanda. Thom (2018) studied impact of tax incentive series on economic development, with the use of panel data analysis the study showed that there is no significant effect of sales and lodging tax waivers on any of four different economic indicators. Also, transferable tax credits were shown to have had a small, sustained effect on motion picture employment levels but no effect on wages, while refundable tax credits had no employment effect and only a temporary wage effect. Andersson and Lazuka (2019) examined the long-term drivers of taxation in francophone West Africa. Their study revealed that long-term relationship existed between tax revenue and the local economic development. 2.3.1Gap in the Empirical Review From all the studies reviewed by the researcher of the present study, limited studies were conducted in the area of tax assessment collection and administration methods in Nigeria. Particularly, the study area of the present research was Uyo, Akwa Ibom state. So, in this regard, the present study would add to the stock of literature already available in this area of interest. CHAPTER THREE METHODOLOGY In this chapter, research design, population, sample size, sampling technique, sources and nature of data and method of data analysis were presented. These were discussed accordingly below: 3.1Research Design The conduct of this study necessitated the adoption of survey research design. This was possible because of the fact that the present study required primary data that were sourced directly by the researcher from the respondents that constituted the sample size of this study. This research design allowed the researcher to administer questionnaire to obtain responses from the respondents in regard to their views on the impact of tax assessment collection and administration methods in Uyo, Akwa Ibom State. 3.2Population of the Study The population of the present study was the aggregate of the employees in Akwa Ibom State Internal Revenue Service (AKIRS) in Uyo particularly in direct assessment and administration units. The reason for the selection of the units was because of the fact that the researcher believed that the employees in the units would have more idea on tax assessment collection and administration. According to the payroll of the institution, the total number of employees in the two units were thirty-four (34) workers. This constituted the population size of this study. 3.3Sample Size The entire population size of thirty-four (34) employees were drawn as the sample size of this study. This was because the entire number of employees in the two units selected for the study can be reached by the researcher and they were considered as tax experts who can contribute immensely to the present study. 3.4Sampling Technique The census sampling technique was used by the researcher in the study to conveniently choose the respondents to administer the structured questionnaire to. This was because the entire population size of thirty-four (34) were sampled for this study. 3.5Sources and Nature of Data Relevant data for this study were collected from primary source. The primary data were obtained with the aid of structured questionnaire, which were administered to the target respondents on the subject matter which was the impact of tax assessment collection and administration methods in Uyo, Akwa Ibom State. 3.6Research Instrument The instrument that used for data collection in this study was a structured questionnaire which was divided into two parts mainly. The first part dealt with the personal data (bio-data) of the respondents while the second part was concerned with objectives of the study. The questionnaire was developed by the researcher under the supervision of the researcher’s supervisor. The questionnaire was intended to obtain the opinions and views of the respondents on questions relating to the research problems. The questionnaire (see appendix one) was structured in such a way that the respondents were able to understand and provide relevant answers to the questions. This is why the five-point Likert scale of strongly agreed 5, agreed 4, disagreed 3, strongly disagreed 2 and undecided 1 was used. The questionnaire was structured in close-ended format. 3.7Validity and Reliability of Research Instrument The Cronbach’s Alpha Statistics was used to test the reliability of the data collected for the study. The Cronbach’s Alpha Statistics of 60% and above was considered significant by the researcher and thus the data being reliable. 3.8Methods of Data Analysis The data will be analyzed using simple percentage, descriptive statistics and Chi-Square (X2) statistical tool. These methods of data analysis were suitable in this study because it allowed the measurement of the variables in the study of the impact of tax assessment collection and administration methods in Uyo, Akwa Ibom State. Hence, the analysis was carried out at 5% level of significance and decision rules were: Accept Ho and reject H1 when P-value>0.05, accept H1 and reject Ho when P-value< 0.05. Below is the Chi-Square (X2) formula stated below: X2=∑(fo-fe)2/fe Where: fo=Observed Frequency, fe=Expected Frequency, ∑=Summation and X2=Chi-Square. CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND DISCUSSION OF THE FINDINGS In this chapter of the study, the researcher was concerned with relevant data presentation, analysis and discussion of the findings. 4.1Data Presentation The relevant data considered in this study were those related to the variables of the present study. Thus, all the data obtained from the questionnaire issued to the respondents were presented in appendix two (2) of this study. The variables of interest were Tax Assessment Collection, Administration and Development (TACAD), Income Tax Rules (ITR) and Tax Assessment and Revenue (TAR). The extracted data from the researcher’s computation were presented on Table 4.1: Table 4.1: Data Presentation S/N TACAD ITR TAR- Source: Field Survey (2021) 4.2Data Analysis In this section of the chapter, the numerous data collected were analysed and presented in accordance with the requirements stated vividly in chapter three of the study. 4.2.1Reliability Test The reliability statistics were computed and presented on Table 4.2a and 4.2b: Table 4.2a: Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items No of Items- Source: Computed by the Researcher (2021) Table 4.2b: Summary of Items Statistics Items Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Squared Multiple Correlation Cronbach's Alpha if Item Deleted TACAD- TACAD- TACAD- TACAD- ITR- ITR- ITR- ITR- TAR- TAR- TAR- TAR- Source: Computed by the Researcher (2021) From Table 4.2, the Cronbach’s Alpha statistics indicated a higher value of 98.1% which showed that the data collected from the respondents with questionnaire for the study using Likert scale could be relied upon because of the computed statistics. 4.2.2Descriptive Statistics To examine the attributes of the essential data collected for the study, descriptive statistics were computed for all the variables and presented on Table 4.3 below: Table 4.3: Descriptive Statistics Variable N Range Min. Max. Mean Std. TACAD- ITR- TAR- Source: Computed by the Researcher (2021) From Table 4.3, Tax Assessment Collection, Administration and Development (TACAD) had range, minimum, maximum, mean and standard deviation of 2.00, 3.00, 5.00, 4.4200 and 0.6303 respectively. The range showed the difference between the maximum and minimum value of TACAD as 2.00, the minimum indicated that the least value of responses obtained in relation to TACAD was 3.00, the maximum showed that the highest value of TACAD was 5.00, the mean indicated that the average value of TACAD from the responses was 4.4200 and the standard deviation of 0.6303 indicated that the variation between the data set for TACAD from the mean value was not high from the responses obtained. The observation of thirty-four (34) was equal the sample size of this study. From Table 4.3, Income Tax Rules (ITR) had range, minimum, maximum, mean and standard deviation of 2.00, 3.00, 5.00, 4.4133 and 0.7415 respectively. The range showed the difference between the maximum and minimum value of ITR as 2.00, the minimum indicated that the least value of responses obtained in relation to ITR was 3.00, the maximum showed that the highest value of ITR was 5.00, the mean indicated that the average value of ITR from the responses was 4.4133 and the standard deviation of 0.7415 indicated that the variation between the data set for ITR from the mean value was not high from the responses obtained. The observation of thirty-four (34) was equal the sample size of this study. From Table 4.3, Tax Assessment and Revenue (TAR) had range, minimum, maximum, mean and standard deviation of 2.25, 2.75, 5.00, 4.4967 and 0.6569 respectively. The range showed the difference between the maximum and minimum value of TAR as 2.25, the minimum indicated that the least value of responses obtained in relation to TAR was 2.75, the maximum showed that the highest value of TAR was 5.00, the mean indicated that the average value of TAR from the responses was 4.4967 and the standard deviation of 0.6569 indicated that the variation between the data set for TAR from the mean value was not high from the responses obtained. The observation of thirty-four (34) was equal the sample size of this study. 4.2.3Test of Hypotheses The hypotheses of the study stated in chapter one were tested using a non-parametric statistical tool of Chi-Square (X2). The computation were done as follows: 4.2.3.1Hypothesis One The computation of the data collected in relation to the Tax Assessment Collection, administration and Development (TACAD) was done using Chi-Square (X2) non-parametric statistical tool and the results were presented on the Table 4.4 below: Table 4.4: Chi-Square (X2) Output Value Observed Frequency (O) Expected Frequency (E) Deviation 3.00 1 6.8 - - - Total 34 Test Statistics TACAD Chi-Square 26.588 df. 4 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 Source: Computed by the Researcher (2021) From Table 4.4, the calculated value for Chi-Square (X2) for TACAD was 26.588 significant (p-value<0.05). With the probability value (p-value) of 0.000 less than 0.05 level of significance, the null hypothesis, which states that tax assessment collection and administration does not raise the level of development in Uyo, Akwa Ibom State significantly, was rejected and the alternative hypothesis, which states that tax assessment collection and administration raise the level of development in Uyo, Akwa Ibom State significantly, was accepted. 4.2.3.2Hypothesis Two The computation of the data collected in relation to Income Tax Rules (ITR) was done using Chi-Square (X2) non-parametric statistical tool and the results were presented on the Table 4.5 below: Table 4.5: Chi-Square (X2) Output Value Observed Frequency (O) Expected Frequency (E) Deviation 3.00 1 4.9 - - - - - Total 34 Test Statistics ITR Chi-Square 36.412 df. 6 Asymp. Sig. 0.000 Exact Sig. 0.000 Point Probability 0.000 Source: Computed by the Researcher (2021) From Table 4.5, the calculated value for Chi-Square (X2) for ITR was 36.412 significant (p-value<0.05). With the probability value (p-value) of 0.000 less than 0.05 level of significance, the null hypothesis, which states that the various income tax rules and regulations are not adequate in Uyo, Akwa Ibom State, was rejected and the alternative hypothesis, which states that the various income tax rules and regulations are adequate in Uyo, Akwa Ibom State, was accepted. 4.2.3.3Hypothesis Three The computation of the data collected in relation to Tax Assessment and Revenue (TAR) was done using Chi-Square (X2) non-parametric statistical tool and the results were presented on the Table 4.6 below: Table 4.6: Chi-Square (X2) Output Value Observed Frequency (O) Expected Frequency (E) Deviation 2.75 1 4.9 - - - Total 34 Test Statistics TAR Chi-Square 17.882 df. 6 Asymp. Sig. 0.007 Exact Sig. 0.007 Point Probability 0.001 Source: Computed by the Researcher (2021) From Table 4.6, the calculated value for Chi-Square (X2) for TAR was 17.882 significant (p-value<0.05). With the probability value (p-value) of 0.000 less than 0.05 level of significance, the null hypothesis, which states that tax assessment does not affect revenue yield in Uyo, Akwa Ibom State significantly, was rejected and the alternative hypothesis, which states that tax assessment affect revenue yield in Uyo, Akwa Ibom State significantly, was accepted. 4.3Discussion of the Findings The collected were appropriately analysed by the researcher using the statistical tools stated earlier in the study. From the analysis of the data collected in relation to Tax Assessment Collection, Administration and Development (TACAD) in Uyo, Akwa Ibom State presented on Table 4.4, it was observed that tax assessment collection and administration is a necessary and essential tool for driving the overall development in the state. It had shown that any improvement in tax assessment collection and administration could raise the standard of living of a common man in the state. To achieve all these, the tax policies in the state must be effective to capture the eligible citizens who are supposed to pay tax into tax net. At the same time, the taxpayers should be able to benefits more from the developmental projects to which the revenue derived from taxes are used to provide. When this continues, the sustainability of development as a result of tax assessment collection and administration is assured. This study was in line with Onakoya et al., (2017) and Dladla and Khobai (2018). From the analysis of the data collected in relation to Income Tax Rules (ITR) in Uyo, Akwa Ibom State presented on Table 4.5, it was discovered that the rules of taxing individuals and enterprises put forward in the relevant tax authorities’ policies in the state are adequate. It indicated that Akwa Ibom State Internal Revenue Service (AKIRS) is an institution that is effective in tax assessment collection and administration in the state. This is because of the fact that any institution that operates with adequate policies, goals and objectives are certain to be accomplished. This study was in consistent with Fjeldstad (2013) and that of Otu and Adejumo (2013). From the analysis of the data collected in relation to Tax Assessment and Revenue (TAR) in Uyo, Akwa Ibom State presented on Table 4.6, it was observed that tax assessment has a link with revenue yield of the state. This showed that as the tax assessment medium or techniques are improved so would the revenue derived from taxation improved. For revenue of the state to be raised, the tax assessment criteria must continuously be reviewed and improved for the purpose of optimizing tax revenue for developmental projects in the state. The study was in line with Abata (2014) and Harelimana (2018). CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATIONS The purpose of this chapter of the study was to summarize the major findings, conclude and recommend possible ideas to improve on the application of tax assessment collection and administration in Uyo, Akwa Ibom State. These were done as follows: 5.1Summary of the Findings The study was conducted to examine the role of tax assessment collection and administration methods in Akwa Ibom state. The specific objectives of the study were anchored on the benefits of tax assessment collection and administration on overall development in the state and as well as revenue yield. The descriptive statistics and Chi-Square (X2) statistical tool were used to analyse the sourced data in regard to tax assessment collection and administration in Uyo, Akwa Ibom state. From the analysis of the data collected, it was observed that tax assessment collection and administration is a necessary and essential tool for driving the overall development in the state; it was discovered that the rules of taxing individuals and enterprises put forward in the relevant tax authorities’ policies in the state are adequate and it was observed that tax assessment has a link with revenue yield of the state. 5.2Conclusion The study was conducted to examine the role of tax assessment collection and administration methods in Akwa Ibom state. From the findings of this study, it was concluded that tax assessment collection and administration methods had a significant role in developmental drives of Akwa Ibom State. 5.3Recommendations From the outcomes of the analysis, the following recommendations were suggested by the researcher of the present study: i. Tax assessment and collection criteria should continuously be improved in the relevant tax authorities of Akwa Ibom State. ii. The employees of the institution studied should be adequately trained on how to properly assess individuals and enterprises for the purpose of more tax revenue yield. iii. The relevant income tax rules should be appropriately enforced for the purpose of encouraging the habit of tax compliance in the state. iv. Tax revenue assessed and collected should be suitably used for more developmental projects in the state to stimulate the habit of tax compliance among eligible citizens. v.The tax assessment criteria in the state should contain all the attributes of cannons of taxation so as to encourage transparency in the tax system of the state. 5.4Contribution to Knowledge From the empirical review of the present study, it had been ascertained that previous studies in this area of interest were limited. The findings of the present study indicated that effective tax assessment collection and administration had a significant link on developmental projects of the state and as well as revenue yield. This and other findings of the study were the contribution to knowledge and as well as the stock of literature in this area of interest. REFERENCES Abata, M. A. (2014). The impacts of tax revenue on Nigerian economy. Journal of policy and Development Studies, 9(1): 109-123. Abiola, J., and Asiweh, M. (2012). Impact of tax administration on government revenue in a developing economy: A case study of Nigeria. International Journal of Business and Social Science, 3(8): 35-43. Adebisi, J. F., and Gbegi, D. O. (2013). Effects of tax avoidance and tax administration in Nigeria. America Journal of Humanities and Social Sciences, 1(3): 125-134. Adedoyin, A. R., and Adekanmi, A. D. (2016). Indicators of tax evasion behaviour among entrepreneurs: Evidence from Nigeria. International Journal of Social Sciences, 10(2), 27-41. Adudu, S. A., and Simon, O. M. (2015). The impact of tax policy on economic growth in Nigeria. Journal of Economics and Sustainable Development, 6(8): 124-129. Afuberon, I. R., and Okoye, G. A. (2014). The effect of tax compliance on economic growth and development in Nigeria, West-Africa. British Journal of Arts and Social Sciences, 11(2): 233-256. Agbonika, J. A. A., and Disu, S. (2012). Problems of personal income tax in Nigeria. Sango, Ibadan: Ababa. Akeju, K. F. (2018). Informal sector and tax compliance: The role of associated membership in South-West, Nigeria. International Journal of Applied Economics, Finance and Accounting, 3(1): 1-9. Akintoye, I. R. (2013). The effect of tax compliance on economic growth and development in Nigeria. British Journal of Arts and Social Sciences, 2(2): 222-231. Akintoye, I. R., and Dada, S. O. (2012). Tax justices and economic growth and development in sub-Saharan Africa. Journal of Management Policy, 3(5): 104-144. Akintoye, I. R., and Tashie, G. A. (2013). The effect of tax compliance on economic growth and development in Nigeria, West-Africa. British Journal of Arts and Social Sciences, 11(2): 222-231. Alabede, J. O. (2014). An explanatory analysis of individual taxpayers’ compliance behavior in Nigeria: a study of demographic differences and impact. International Journal of Accounting and Taxation, 2(2): 39-64. Allain, C. (2016). Facing tax fraud in the European Union: Challenges and perspectives. Themis competition-2016 Edition. Allan, I. J. (2012). Revenue collection administration: A guide for smaller governments. Andersson, J., and Lazuka, V. (2019). Long-term drivers of taxation in francophone West Africa-. World Development, 114, 294-313. Appah, E. (2010). The problems of tax planning and administration in Nigeria: The federal and state governments experience. Asian Journal of Research in Banking and Finance, 4(12): 1-14. Baghedo, J. F. (2012). Effects of tax avoidance and tax administration in Nigeria. American Journal of Humanities and Social Sciences. 1(3): 125-134. Batrancea, L. M., and Moldovan, B. A. (2012). Tax compliance models: From economic to behavioural approaches. Transylvanian Review of Administrative Sciences, 36: 13-26. Bayar, T., and Ozturk, O. F. (2018). Impact of foreign direct investment inflows on tax revenue: The case of OECD countries. Theoretical and Applied Economics, 15(1): 31-40. Benson, E. A. (2019). How Nigeria generated an all-time high tax revenue in 2018. Benyin, A. A., and Ugochukwu, D. A. (2015). Development and its challenges in Nigeria: A theoretical discourse. Mediterranean Journal of Social Sciences, 6(6) 16-24. Bhartia, H. L. (2019). Economic growth and indirect tax structure and administration in Nigeria. Journal of Applied Finance and Banking, 16(29): 57-68. Birds, R. M. (2015). Productivity of the Nigerian tax system:-. African Economic Research Consortium, AERC Research Paper 67, Nairobi, Kenya: 1-50. Chase, G., and Reveal, E. C. (2013). How to manage in the public sector: New York: Random House. Chigbu, E. E., and Njoku, C. O. (2015). Taxation and the Nigerian Economy: -). Management Studies and Economic Systems, 2(2): 111-128. Damayanti, J. (2015). Psychological factors affecting tax compliance-A review paper. International Journal of Arts and Commerce, 4(6): 131-141. Dauda, U., and Saidu, S. (2014). Tax evasion and governance challenges in the Nigerian informal sector. Journal of Economies and Finance, 5(2): 156-161. Dladla, H., and Khobai, K. (2018). The impact of taxation and economic growth: Auto-regressive distribution Lag (ARDL) approach. Management Studies and Economic Systems, 4(8): 11-18 Durusu-Çiftçi, D., Gökmenoğlu, K. K., and Yetkiner, H. (2018). The heterogeneous impact of taxation on economic development: Newinsights from a panel co-integration approach, Economic Systems. Edame, M. A., and Okoi, J. R. (2014). Impact of tax on investment and economic growth in Nigeria. Journal of Public Economics, 8(2): 27-44. Eiya, O., Illaboya, O. J., and Okoye, A. F. (2016). Religiosity and tax compliance: Empirical evidence from Nigeria. Igbinedion University Journal of Accounting, 1: 27-41. Enahoro, J., and Olabisi, J. (2012). Tax administration and revenue generation of Lagos State. Research Journal of Finance and Accounting, 28(13): 110-124. Fagbemi, O. T., Uadiale, M. O., and Noah, O. A. (2010). The ethics of tax evasion: Perceptual evidence from Nigeria. European Journal of Social Sciences, 17 (3): 360-371. Feld, L. P., and Frey, B. S. (2016). Tax compliance as the result of a psychological tax contract: The role incentives and responsive regulation. Institute for Empirical Research in Economics. University of Zurich, Switzerland. Fjeldstad, O. (2013). Taxation and development: A review of donor support to strengthen tax systems in developing countries, WIDER Working Paper, No. 2013/010. Gbato, A. (2017). Impact of Taxation on Growth in Sub-Saharan Africa: New Evidence Based on a New Data Set. Munich Personal RePEcArchive. Harelimana, J. B. (2018). The role of taxation on resilient economy and development of Rwanda. Journal finance marketing, 2(1): 28-39. Ibadin, P., and Oladipupo, A. (2015). Indirect taxes and economic growth in Nigeria. European Journal of Social Sciences, 16(18): 32-40. Ihendinihu, J. U., and Nmedirionye, J. A. (2016). Underground economic activities and tax revenue losses: Empirical evidence from the Nigeria economy. Journal of Emerging Trend in Economics and Management Sciences, 7(1): 67-74. Ihenyen, C. J., and Ebipanipre, E. G. (2014). Taxation as an instrument of economic growth: The Nigerian perspective. Journal of Information and Knowledge Management, 4(12): 49-53. Kajola, G. (2011). The anatomy of tax avoidance in income distribution: Limits to redistribution. Proceedings of the 31st Symposium of the Closter Research Society, University of Bristol: John Write and Sons Ltd: 135-148. Kanbiro, O. D. (2018). Factors influencing taxpayer’s voluntary compliance attitude with tax system. Evidence from Gedeo Zone of Southern Ethiopia. Universal Journal of Accounting and Finance, 69(3): 92-107. Kiabel, B. D., and Nwokah, N.G. (2011). Boosting revenue generation by state governments in Nigeria: The tax consultants’ option revisited. European Journal of Social Science, 8(4): 532-539. Layira, S., Chukwuma, T., and Asian, E. (2012). Effect of tax avoidance and tax administration in Nigeria. American Journal of Humanities and Social Sciences, 1(3): 125-134. Mohammed, A. U., Chek, D., and Idawati, I. (2017). Challenges of tax revenue generation in developing countries-Adopting the carrot and stick approach. Journal of humanities and Social Sciences, 22(1): 30-34. Nwocha, M. F. (2017). Tax evasion law in Nigeria. Problems of Legality, 139: 286-295. Odusola, A. F. (2016). Tax policy reforms in Nigeria. A research work of United Nations University. World Institute for Development Economies Research, Research Paper, 3: 1- 45. Ogbueghu, S. N. (2016). The effect of tax evasion and avoidance on revenue generation in Nigeria. International Journal of Science and Humanities Reviews, 6(3): 83-89. Okoye, P. V. C., Akenbor, C. O., and Obara, L. C. (2012). Promoting sustainable tax compliance in the informal sector in Nigeria. International Journal of Arts and Humanities, 1(1): 40-54. Oloidi, G. A., and Oluwalana, L. O. (2014). Another approach to evaluating the productivity of value added tax in Nigeria. Developing Country Studies, 4(15): 39-45. Olokooba, M. S. (2018). Tax offences: Clogs in the wheel of progress and development of Nigeria as a nation. Nnamdi Azikiwe University Journal of International Law and Jurisprudence, 9(1): 226-236. Omodero, C. O. (2019). The financial and economic implication of underground economy: The Nigerian perspective. Academic Journal of Interdisciplinary Studies, 9(1): 226-236. Onakoya, A. B., Afintinni, O. I., and Ogundajo, G. O. (2017). Taxation revenue and economic growth in Africa. Journal of Accounting and Taxation, 9(2): 11-22. Onoja, M. L., and Iwarere, T. H. (2015). Effects of tax audit on revenue generation. Federal Inland Revenue Services, Abuja experience. Journal of Good Governance and Sustainable Development in Africa, 2(4): 67-80. Onyegbule, C. N. (2016). The challenges of tax revenue mobilization in Nigeria through voluntary tax compliance: The role of self-assessment (Doctoral Dissertation). Otu, O. H., and Adejumo, T. O. (2013). The effects of tax revenue on economic growth in Nigeria. International Journal of Humanities and Social Science Invention, 2(6): 16-26. Pedley, D., and McCluskey, R. (2019). Tax and accountability: How to strengthen the links. Sasunova, D., Sulikova, R., and Szarkova, R. (2017). Tax management hierarchy-Tax fraud and a fraudstar. Paper presented at Management International Conference, Venice, Italy. Soyode, L., and Ogbonna, G. N. (2012). Taxation-Principles and practice in Nigeria, Ibadan: Silicon Publishing Company. Stoilova, D., and Patonov, N. (2012). An empirical evidence for the impact of taxation on economy growth in the European Union. Book of Proceedings-Tourism and Management Studies International Conference Algarve, 3:-. Taha, R. (2018). Causality between tax revenue and government spending in Malaysia. The International Journal of Business and Finance Research, 2(2): 63-73. Thom, M. (2018). Lights, camera, but no action? Tax and economic development lessons from state motion picture incentive programs. American Review of Public Administration, 48(1): 33-51. Vance, S., Lowry, J., and Eggett, R. (2015). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1): 65-94. Worlu, C. N., and Emeka, N. (2012). Tax revenue and economic development in Nigeria: A macro econometric approach. Academic Journal of Interdisciplinary Studies, 21(46): 121-139. APPENDIX ONE (1) QUESTIONNAIRE Sir/Madam, REQUEST FOR COMPLETING OF THE ATTACHED QUESTIONNAIRE I am a final year student of the Department of Accounting, Faculty of Business Administration, University of Uyo, Uyo. I humbly request for your attention in filling of the attached questionnaire with due respect as this will be of great aid to me in order to facilitate the completion of a study on the topic, “Appraising the Impact of Tax Assessment Collection and Administration Methods in Akwa Ibom State. The information obtained will be treated confidentially. Thanks for your cooperation. THOMPSON, UDUAK NSE Researcher INSTRUCTION: Please, tick appropriately the option you consider best Section A: Bio-Data 1.The range of age of the respondent…………………… (a) 0-20years (b) 21-30years (c) 31-40 years (d) 41years and above 2.Qualification of the respondent is………………. (a) SSCE (b) OND (c) B.Sc./HND (d) MBA/M.Sc. (e) PhD and others 3.Gender of the respondent is……………………… (a)Male (b)Female 4.State of origin of the respondent………………. 5.Duration in Service………………………… (a) 0-2years (b) 3-6years (c) 7-10 years (d) 11years and above Section B: Research Data Table A: Tax Assessment Collection, Administration and Development in Uyo, Akwa Ibom State. S/N Question SA A D SD U 6. Tax assessment and administration are used judiciously to improve upon the standard of living of the people in the state. 7. Tax assessment and administration criteria are designed by the government of the state for developmental purpose. 8. Tax assessment collection helps the government of the state to accomplish its targeted programs. 9. Tax assessment and administration is an embodiment of tools for the state’s overall development. Table B: Various Income Tax Rules in Uyo, Akwa Ibom State. S/N Question SA A D SD U 10. The purpose of income tax rules is to ensure that the rate of tax evaders is curtailed in the state. 11. The various rules for taxing individuals, properties and business enterprises in the state appropriately stated in detail. 12. The income tax rules formulated and implemented in the state are in line with the general tax laws enacted in the country. 13. The methods of taxing in the state encompass the cannons of taxation which include equity, certainty, convenience and administrative efficiency. Table C: Tax Assessment and Revenue Yield in Uyo, Akwa Ibom State. S/N Question SA A D SD U 14. The tax assessment techniques adopted in the state influence the revenue yield in the state. 15. Tax assessment methods are techniques used by the government of the state to plan for adequate revenue yield in any fiscal year. 16. Tax assessment criteria are usually employed by the government of the state when formulating its developmental policies. 17. Tax assessment methods adopted in the state are positively linked to revenue yield. APPENDIX TWO (2) Table A: Raw Data Collected by the Researcher S/N TACAD1 TACAD2 TACAD3 TACAD4 TTACAD ATACAD- Source: Field Survey (2021) Table A: Raw Data Collected by the Researcher Continued S/N ITR1 ITR2 ITR3 ITR4 TITR AITR- Source: Field Survey (2021) Table A: Raw Data Collected by the Researcher Continued S/N TAR1 TAR2 TAR3 TAR4 TTAR ATAR- Source: Field Survey (2021) Where: TACAD1, TACAD2, TACAD3 and TACAD4=Tax Assessment Collection, Administration and Development Questions from One to Four TTACAD=Total score of Tax Assessment Collection, Administration and Development ATACAD=Average score of Tax Assessment Collection, Administration and Development ITR1, ITR2, ITR3 and ITR4= Income Tax Rules Questions from One to Four TITR=Total score of Income Tax Rules AITR=Average score of Income Tax Rules TAR1, TAR2, TAR3 and TAR4= Tax Assessment and Revenue Questions from One to Four TAR=Total score of Tax Assessment and Revenue TAR=Average score of Tax Assessment and Revenue APPENDIX THREE (3) The computer output of the analysis was presented below: Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items No of Items- Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Squared Multiple Correlation Cronbach's Alpha if Item Deleted TACAD- TACAD- TACAD- TACAD- ITR- ITR- ITR- ITR- TAR- TAR- TAR- TAR- Descriptive Statistics N Range Minimum Maximum Mean Std. Deviation TACAD- ITR- TAR- Valid N (listwise) 34 Descriptive Statistics N Percentiles 25th 50th (Median) 75th TACAD- ITR- TAR- TACAD Observed N Expected N Residual 3.00 1 6.8 - - - Total 34 ITR Observed N Expected N Residual 3.00 1 4.9 - - - - - Total 34 TAR Observed N Expected N Residual 2.75 1 4.9 - - - Total 34 Test Statistics TACAD ITR TAR Chi-Square 26.588a 36.412b 17.882b df 4 6 6 Asymp. Sig- Exact Sig- Point Probability- a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency is 6.8. b. 7 cells (100.0%) have expected frequencies less than 5. The minimum expected cell frequency is 4.9.