CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Taxes are the most important source of government revenue. A tax can be defined as a compulsory levy imposed by a public authority in one’s incomes, consumption and production of goods and services. Taxes are levied on personal incomes (consisting of salaries, business profit interest income dividend royalties etc) company profits, petroleum profit capital gains and capital transfers.
For a payment or collection to be considered as a tax, it should posses the following characteristics.
a. It is a compulsory payment imposed by the government on the people residing in the country. Since it is a compulsory levy, any person who refuses to pay a tax is liable to punishment. A levy the payments of which is voluntary is not a tax buy a contribution or donation.
b. A tax must be for common use. It must be for common good, the government uses the revenues collected from taxes for providing hospitals, schools, public utility services etc. which benefits every citizen of the nation.
c. A tax is not levied in return for any specific services rendered by the government to the taxpayer. An individual cannot ask for any special benefit from the government in return for the tax paid by him or her.
1.2 OBJECTIVE OF THE STUDY
The objective of writing this project work is to view the impact of taxation law on investment activities in Nigeria.
In view of this fact, the study will take a look at whether business activities management recorded or prepared in their financial statement as stipulated by the tax law.
In the course of the study the researcher shall also take a look at the concept of tax law in Nigerian and also make suggestions and recommendation on taxation in Nigeria.
1.3 SIGNIFICANCE OF THE STUDY
This study would help in enlightening manager’s accountants, auditors, Business consultants, tax collectors financial manager, government (federal, state and local joint tax board state internal revenue board and federal board of Inland Revenue board, about the impact of taxation law on investment activities in Nigeria.
It will also give the likely suggestion solution to the problem-encountered in taxation law and also highlight the necessary improvement on taxation law on investment activities Nigeria.
1.4 SCOPE OF THE STUDY
The study of the impact of taxation laws on investment activities in Nigeria could be extensive since there are lots of different business activities.
In Nigeria such as manufacturing wholesales; retail, banking insurance, investment, financing, shipping, road and transportation of tax payment affect the firm in an industry.
The extent of this research is limited to the study of taxation and effect on a company or two company’s activities in an industry. This impact on company is typical of others and industry.
This project research work also examines the impact of pay as you earn system of tax collection of purchasing power of industry in pay employment and small trades concern.
Methods’ sending of some of the tax liabilities has also been considered in this course o for the research work.
Government efforts in providing a conductive economic environment that would inspire new in encourage existing one towards a better performance through the provision on incentive and tax benefit covered in this project.
1.5 RESEARCH METHODOLOGY
The method of the study is a very crucial aspect in research work. However, several research methods are opened for the use of the researcher, but the choice of method will assist in evaluating the adequacy and efficiency of the research finding and conclusion.
Therefore, selecting a proper method of investigation into a problem is a key consideration for this study due to the fact that the topic being studied is not the type that every organization appreciates its importance achievement of organization objectives. For this reason, the researcher as a student decided to use personal interview in gathering the secondary data required for the desired result.
1.6 DEFINITION OF TERMS
TAX: A tax can be defined as a compulsory levy imposed by the government of a nation on the incomes, consumption and production of goods and services of the citizen.
LAW: It is a system of rules that a society or government develops in order to deal with business agreement, social relationship and crime.
INVESTMENT: It is the activity of buying shares or putting money into a bank account in order to obtain a return informs of divided or interest.
ACTIVITY (IES): This can be defined as the services that required certain number of time and skill.
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Item Type: Project Material | Size: 43 pages | Chapters: 1-5
Format: MS Word | Delivery: Within 30Mins.
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