PROBLEMS ASSOCIATED WITH TAX COLLECTION
There are a whole lot of problem associated with tax collection. I remembered once I was standing bail for a colleague, I had to go and get my tax clearance from Eco bank.
It is very evident that people don’t like paying tax unless there are laws put in place to pressurize the citizens to pay up their taxes
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Difficulties encountered by tax collectors in Nigeria
Below are few listed problems associated with tax collection all over the world. These issues of tax collection are not limited the ones I am going to enumerate here
- Failure to fulfill civic responsibilities: Many people do not fulfill their civic collection responsibilities of paying tax as at when due.
- 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 expectation: 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.
- Insincerity of tax collector: 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: Majority of traders and small scale business do not keep proper book of account for the purpose of proper tax assessment.
- Wrong belief of the people: Many people think that the money collected is for the tax collectors therefore refuse to pay tax.
- Mismanagement of government fund: Embezzlement and misappropriation of government fund by those at the corridors of power usually kill people’s morale or interest to fulfill their civic obligation of paying tax.
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