problems associated with tax collection, There are a whole lot of problems associated with tax collection. I remembered once I was standing bail for a colleague and I had to go and get my tax clearance from Eco bank.
Tax collection refers to the process of gathering funds from individuals, businesses, or other entities to finance government activities and public services. Taxes are typically imposed by governments at various levels (local, state/provincial, and national) to generate revenue and support the functioning of public infrastructure, social programs, defence, healthcare, education, and other government services.
The tax collection process involves several key steps:
Tax Legislation: Governments enact tax laws and regulations that specify the types of taxes, tax rates, taxable entities, deductions, exemptions, and filing requirements.
Taxpayer Identification: Individuals and businesses are assigned unique identification numbers (such as Social Security numbers or Tax Identification Numbers) to facilitate tax reporting and payment.
Tax Return Filing: Taxpayers are required to file tax returns, which provide information about their income, expenses, and deductions. Tax returns are generally submitted annually, but the frequency may vary based on the type of tax and jurisdiction.
It is very evident that people don’t like paying taxes unless there are laws put in place to pressurize the citizens to pay up their taxes and problems associated with tax collection. there are a whole lot of problems that make the collection of taxes difficult in the developing world, unlike the Western nations. so here in this post, I am going to explain the major problems facing taxation
problems associated with tax collection in Nigeria
Below are a few listed problems associated with tax collection all over the world. These issues of tax collection are not limited to the ones I am going to enumerate here
- Failure to fulfil civic responsibilities: Many people do not fulfil their civic collection responsibilities of paying tax when due to problems associated with tax collection, There is a whole lot of problem associated with tax collection. I remembered once
- Failure to declare real income: Many workers and corporate bodies, especially those in private firms, do not declare their real incomes.
- Failure to meet people’s expectations: Many people have the belief that the money they pay as tax should be used only provision of social amenities. They will resist payment of tax if these anticipated amenities are not provided.
- Tax evasion: High taxes scare potential payers away.
- The insincerity of tax collectors: The majority of the tax collectors are not sincere as they pay a little of what they collected to the government and put the remaining in their personal pockets.
- Lack of book of account: The majority of traders and small-scale businesses do not keep proper books of account for the purpose of proper tax assessment.
- The wrong belief of the people: Many people think that the money collected is for the tax collectors and therefore refuse to pay tax.
- Mismanagement of government funds: Embezzlement and misappropriation of government funds by those in the corridors of power usually kill people’s morale or interest to fulfil their civic obligation of paying taxes.
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