EFFECTS AND ADMINISTRATION OF VALUE ADDED TAX IN THE NIGERIA ECONOMY.

EFFECTS AND ADMINISTRATION OF VALUE ADDED TAX IN THE NIGERIA ECONOMY.

ABSTRACT

Many countries of the world today have been striving very hard to achieve rapid overall development through the optimum assessment and tax administration in Nigeria to ensure collection and expanded revenue base. New forms of taxes are selectively being introduced in this era particularly by the underdeveloped nations to boast their revenue and incapacity with the aim of improving the socio-economic development of their countries. One of such modern forms of taxation is the VAT introduced on 1993 into the Nigerian tax system as a replacement of sale tax. The purpose of this research is therefore hinged on the Effects and the Administration of Value Added tax in the Nigeria Economy by the Federal Board of Inland revenue. The research started with an outline of the research objective, the review of related literature of the study and hypothesis are formulated with the aim of finding solutions to the research problems identified. The data for the research was obtained largely from primary and secondary sources. The research revealed through the hypothesis tested, that VAT is a significant sources of revenue to the government and that it contributes to the development of the country. Consequently, some problems standing in the way of VAT are highlighted, but with an assertion that the future for VAT is after all bright. The research draws a conclusion and advances to recommendations for improving the optimal machinery of VAT to ensure its sustained contribution to the Nigeria economy.

 

TABLE OF CONTENTS

TITLE PAGE. i

APPROVAL PAGE. ii

CERTIFICATION.. iii

DEDICATION.. iv

ACKNOWLEDGMENTS. v

ABSTRACT. vii

TABLE OF CONTENTS. viii

LIST OF TABLES. xi

 

CHAPTER ONE. 1

INTRODUCTION.. 1

1.1    BACKGROUND OF THE STUDY. 1

1.2    STATEMENT OF THE PROBLEM.. 4

1.3    OBJECTIVES OF THE STUDY. 5

1.4    RESEARCH QUESTIONS. 5

1.5    HYPOTHESES. 6

1.6    SCOPE AND SIGNIFICANCE OF THE STUDY. 7

1.7    RESEARCH HYPOTHESES. 7

1.8.   LIMITATIONS OF THE STUDY. 8

 

CHAPTER TWO.. 10

REVIEW OF RELATED LITERATURE. 10

2.1    CONCEPTUAL FRAMEWORK. 10

2.2    THEORETICAL FOUNDATION OF STUDY. 12

2.3    CHARACTERISTICS OF VALUE ADDED TAX. 15

2.4    VALUE ADDED TAX ADMINISTRATION AND ACCOUNTING. 18

2.5    THEORY ISSUES IN VAT. 19

2.6    PROBLEMS AND PROSPECTS OF VAT. 21

2.7    TYPES OF VALUE ADDED TAX. 22

2.8    VAT REGISTRATION AND OBLIGATIONS OF REGISTERED PERSONS IN NIGERIA. 23

2.9    RIGHTS OF REGISTERED PERSONS. 27

2.10 VAT TECHNICAL COMMITTEE COMPOSITION. 27

2.11 DISTRIBUTION OF VAT AMONG THE THREE TIERS OF GOVERNMENT. 28

2.12 ARGUMENTS FOR AND AGAINST VAT. 28

2.13  COMPUTATION OF VALUE ADDED TAX. 30

2.14  EMPIRICAL REVIEW.. 30

 

CHAPTER THREE. 34

RESEARCH METHODOLOGY. 34

3.1    RESEARCH DESIGN. 34

3.2    AREA OF STUDY. 34

3.2.1 SOURCES OF DATA. 36

3.3    DATA COLLECTION TECHNIQUES. 38

3.4    POPULATION THE STUDY. 39

3.5    SAMPLE SIZE. 39

3.6    METHOD OF ADMINISTRATION OF THE RESEARCH INSTRUMENT. 40

3.7    VALIDATION OF RESEARCH INSTRUMENT. 40

3.8    RELIABILITY OF RESEARCH INSTRUMENT. 40

3.9    METHOD OF DATA ANALYSIS. 41

 

CHAPTER FOUR. 42

DATA PRESENTATION, ANALYSIS AND INTERPRETATION.. 42

4.1    DATA PRESENTATION. 42

4.2    DATA ANALYSIS. 43

4.3    TEST OF HYPOTHESES. 45

4.4    INTERPRETATION OF RESULTS. 49

 

 

CHAPTER FIVE. 51

SUMMARY OF FINDINGS. 51

5.1    DISCUSSION. 51

5.2.   SUMMARY OF FINDINGS. 52

 

CHAPTER SIX. 55

CONCLUSION AND RECOMMENDATION.. 55

6.1    CONCLUSION. 55

6.2    RECOMMENDATIONS. 56

REFERENCES. 59

 

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