ABSTRACT
This study was carried out to examine personal income taxation incidence in " Nigeria economic; implication and effect on the employees(A case of Agege local Government Area, Lagos State) The entire research work was divided into five major parts which .include: Introductory aspect ,which is chapter on containing introduction, Background of the study, statement of problem, Research methodology , Data collection , Research questions, Research hypothesis ,Scope of study ,Limitation of the study and Definition of terms. Chapter two dealt with the reviews of literature and talk extensively on personal income tax as written by different authors .It contains the following Administrative organization, Composition of State Board of Internal Revenue ,Duties of State Board of internal Revenue ,Joint Tax Board .Personal income rate Personal Allowance and Relief, Assessment of personal income Tax, Objectives and Appeals, Personal income Tax Enforcement, incidence of Taxation on workers and economic implication on employees .The third chapter is the methodology of the research which encompasses Introduction ,Features of the study population, Sampling Design and procedures, Research Design, Methods of data collection ,Methods of Data analysis and Limitation of methodology .Chapter four involves introduction, Presentation of data, Analysis of Data, Test of hypothesis, Discussion of Result .Lastly chapter five contains summary, recommendation to the employees, government and public at large and Conclusion.
CHAPTER ONE
1.0 INTRODUCTION
The concept taxation has been in practice in Nigeria prior the advent of British who colonized Nigeria, though it was practiced in various forms by the various communities in the Northern, Western and Eastern Nigeria. In the Northern more definite organized and sophisticated tax system was operational than anywhere else in the country. The following forms of taxation was recognized; Zakat. tax levied on Moslems for charity ,religious and educational purposes. Kurdin-Kasa tax payable on landed properties for agricultural purposes. Shukka-Shukka, tax payable on crop and Jangali ,tax levied on livestock. In Western Nigeria, the most popularly identifies taxes are: Isakole, tax levied on land used by local communities who are normally expected to pay obeisance to the local chief .It is paid by community to a superior king. Owo-ori, tax levied compulsorily on individuals. Also, in the Eastern Nigeria, the following forms of taxes were practiced during the pre-colonial era. Egbu-Ukwu, tax levied before harvesting palm oil, community effort, which is a levy or contribution from individuals to community purse. It is normally collected for specific purposes. According to Idown in her principles of public finance 2004, a tax can be defined as a compulsory levy imposed on individuals, corporate bodies ,goods and services by the government as a source of revenue for carrying out its responsibilities ,such as provision of good roads, constant power supply ,adequate water supply .good healthcare centers ,educational facilities etc. Taxation has been a great tool in the regulation of the economy. In is the most important source of revenue to the various tiers of government in Nigeria After the colonization of Nigeria till date, there exist various forms of taxation such as personal income tax, Companies Income Tax, Capital Gain Tax, Value Added Tax, Petroleum Profit Tax, and Education Tax. Personal Income Tax would be the basis on which this study is based, how it affects and induces economic growth, its effect and implication on the working class known as the employees.
Abiola2004) defined personal Income Tax to be the tax levied on the income of individual employees, sole traders, trustees, partners etc.lt was promulgated in 1993 by personal Income Tax Decree 104 Act 1993 which has currently been changed to personal Tax Act Cap p8 LFN (2004) and the government organ responsible for its administration is State Board of Internal Revenue of the different states in the country, with an operational a.rm of state Internal Revenue Service's (SIRS).
1.1 BACKGROUND OF THE STUDY
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