In order to perform this adequately, there is need for local council to have strong economic base. In this connection, it is suggested that statutory allocation to local council be reviewed upward. This will make them financially self reliant. Amoebic (2003) holds that it becomes imperative for a local government to set tragically for revenue collection, a carefully and thoroughly which a local government can collect her revenue by her efforts. The total revenue from these sources makes up the internally generated revenue.
Chime (2003) enumerated such local source of revenue among others as tenement rates, market and motor park, fees, sign board and advertisement permits, shops, kiosk, rates etc, also the local government bye-law (2000) specified approval fees payable as rate in the locality on such revenue in items as community and sanitation rates, market rolls and market stall tees, the bye-law also stated the modalities area s specified and the mode of remitting what specified and the mode of remitting Nat is collected to the treasury articles 4 (d) of the revenue collector should report to the council the names of those persons who have failed to pay, the amount in respect of rates due from them. 2. 4 Strategies for revenue generation analyze tax collection in government is to bring development to the grass roots in order to perform this adequately, there is suggested that statutory allocation to local council be reviewed upward. This will make them financially self reliant. Amoebic (2003) holds that it becomes imperative for local government to set tragically for revenue collection carefully and thoroughly which a local government can collect her revenue by her efforts.
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The total revenue from these sources makes Jp the internally generated revenue. Chime (2003) enumerated such local source of revenue and motor park, fees, sign boards and advertisement permits, shops, kiosk rats etc, also the locally government bye-law (2000) specified approval fees payable as rate in the locality on such revenue in items as community and sanitation rates, development rate, market tolls and market stall fees, the bye law also stated the mode of remitting what is collected to he treasury Articles 4 (d) of the revenue collector should report to the council the names of those person who have failed to pay, the amount in respect of rates due from them.
Other strategies to be adopted by the local government for tax collection and revenue generation included the following: The administration of tax collection and revenue generation should be strengthened to ensure more efficient tax collection and revenue generation through the training of staffs, tax collection through the training of staffs, tax collector to be equipped out their functions creating effective in arraying out their functions creating of awareness, campaign within the local government and computerizing of tax collection system. Government should continue to ensure reduction in tariff policy to encourage local industries. Specifically aggressive action should be taken to block revenue leakage on high duty goats and revenue leakage on high duty goods and bulk items. VAT has become a veritable source of revenue earning for the strengthened and expanded to broaden the tax base and to bring vat administration closer to the taxpayers, new local vat officers should be established all over the country.
Despite the emergence of local government as the third tiers of government in 1976 and the sub sequent constitution of 1989, 1990, 1990, 1991, and 1992 all intended to operational the third tier status of local government, local government have continued to be bridged down by numerous external and internal problem of revenue generation and tax collection. These are classified into two namely: internal Internal Problems ere board of internal revenue, Enough state is the main tax administration at Enough is he main tax administration much every. It has at least one office in each local government areas in the state. Each local government offices has tax collector agent each town. This could be regarded as operational short coming since it hiders the carrying out efficiently the responsibility changed to them.
These includes the following: Inadequate staffing: the head quarters of the board of internal revenue has division and units with staffs in each of them but their staffs mostly the Junior officials are not Nell educated to the extend that they find it difficult to apply tax laws. The skeletal umber of experienced officials are mostly found in urban areas. These few are loaded with Jobs as the available staff is not sufficient the lack of experienced tax officials in Enough south local government have created opportunity far the evader. Tax evader can middle their account up and even direct the ill-equipped, half-backed lunar tax officials on what the ought to pays. This will result in loss of appropriate revenue that ought to be realized when properly assessed.
In adequate supply of facilities: A visit to the tax officer headquarter at Enough state shows one that the offices lack facilities. The tax unit lack vehicles get tax well equipped t the extend Inhere, documents are not given adequate security as a result of the nature of their Officers, no comfort able office vise–vise their counter parts in the government establishment. Mobility: inadequacy of transport vehicles poor maintenance of transport vehicles resulting in inefficient supervision and co-operation of revenue collection points. Human problems: lack of dedication on the part of revenue agents and tax collector. Total disregard for probity and accountability.
Lack of individual set achievement targets for agents and collector to Justify their pay. Mis-management of tax collected: where taxes collected were not been utilized for the purpose for which it was collected. This makes tax payers not go give out their wealth for the nation. Robbery and corruption: in this day, tax collected personal interest has over ride their officials interest in the performance of their duties, consequently affect revenue generation for the nation. Poor accounting record: most business men, traders, professionals do not keep proper records for their income and expenditures. Harsh Economic conditions: According to CLAY C. S (1981) this is prime of all the external problems.
The harsh economic condition prevalent in the country has led to closing of many business and the rate of inflation which is as a result of various economic measure. The income of tax payer are left with meager disposal income Inch can not meet their needs. Hence they are left with the options of avoiding tax thereby reducing the revenue derived from tax. Tax evasion: according to Dodo Inch 11998) states that tax evasion is unlawful act of failure on the part of taxable person to disclose his taxable income for the purpose of tax assessment and there by escaping completely from tax liabilities. On a more general note, tax evasion is said to paying the full tax which is legally charge on the tax base.
Tax Avoidance: According to Dodo (1998) states that the tax avoidance is a lawful act of behavior in which tax payers manipulate the economic situation using the legal devices as being provided n tax structure to reduce this tax liabilities to his advantages. That is, exploiting the legal escapades in the tax law to one’s unpatriotic advantage by reducing the tax burden on him or and organization. Tax avoidance can take the form of refusal to earn income, conversation of taxable into man-taxable income. Lack of consideration of social Norms and human Behavior pattern of revenue Payers: the attitude of local people and the resident towards fulfilling their civic responsibilities were quite counter productive.
The state government may decide to withhold the grants given to Local government by the federal government for non-compliance with certain regulations. There are various organization of government that makes the management and intro of revenue possible, such as the state ministry of local government which have both consultative and supervisory responsibilities over the administrative of local government. The generation council, the secretary treasure, and his staff have special responsibilities in that regard. The auditor act as a watch dog to the management of local government revenue. Financial control may be classified under broad heading biz. The international and external control.
Internal control: the internal control the power exercised over local government councils finances by its members and staff. It involves the separation of such function so that duties are allocated in such away that function can act as check on the other their procedure are laid down for authorization of expenditure, recorder of revenue and other financial loans action provisions are made for the control and custody of assets of local government councils. Example of in control are: control by the council the role of local government treasurer. ere role of local government secretary. ere role of internal auditors External Control External control of revenue of local government in Nigeria is exercised by respective Tate government.