AN EVALUATION OF BARRIERS CONFRONTING TAX ADMINISTRATION IN ANIOCHA NORTH, ANIOCHA SOUTH, AND BOMADI LGA OF DELTA STATE

Background to the Study: The legislative authority of the Nigerian government, similar to governments in various global regions, enables it to enforce taxation on its populace, including diverse forms of taxes and rates as deemed suitable (Federal Inland Revenue Service, 2010). According to Acti and Abigail (2014), the concept of tax can be defined as a monetary obligation imposed by the government, which individuals and entities are required to pay in order to facilitate the provision of public services. In a similar vein, D'Arcy (2011) provides a definition of tax as follows: "Tax is a monetary obligation imposed by the government on individuals, organisations, or assets, with the intention of generating public revenue." Furthermore, according to Ogbonna and Appah (2012), taxes can be defined as compulsory and proportionate contributions imposed by the state, exercising its sovereign authority, to finance the government and fulfil all public requirements. Taxation can be defined as a mandatory financial obligation imposed by a governing authority on the earnings, gains, commodities, services, or assets of individuals, business entities, trusts, and settlements. When taxes are collected, they are utilised to support various governmental activities, such as the maintenance of law and order, the provision of infrastructure, healthcare, education, and as a fiscal instrument for economic management.

The origins of taxation in Nigeria can be traced back to the pre-colonial period. Prior to the colonisation of the distinct entities that were subsequently consolidated into the entity known as Nigeria, a variety of taxation systems were in place. These systems encompassed obligatory services, the provision of goods, monetary contributions, labour, and other forms of taxation. These practises were observed within the diverse kingdoms, ethnic groups, and tribes that were under the authority of Obas, Emirs, Ezes, Attahs, Ohinoyis, and Amanyanabos, with the primary objective of supporting the sustenance of the monarchs (Osakwe, 1999). The origin of Nigerian taxes can be attributed to the foundation of the British colony in Lagos on August 6, 1861, and the subsequent unification of the Southern and Northern protectorates of Nigeria in 1914.The responsibility for the administration of taxation in Nigeria is assigned to different tax bodies based on the specific type of tax being addressed. The three governing bodies in question are the Federal Inland Revenue Service Board, State Internal Revenue Service Board, and Local Government regions. The responsibility for tax administration within local government areas is vested in the local government revenue committee. The aforementioned committee has been assigned the task of evaluating and gathering all penalties, fees, and rates within its jurisdiction. Additionally, it is responsible for maintaining accurate records of all collected amounts, following the guidelines set forth by the chairman of the local government (Rogoff, 2016). The establishment of the Local Government Revenue Committee was mandated by the Public Income Tax Act of 1993 (S. 85D), with subsequent amendments in 2004. This legislation asserts the autonomy of local government from the local government treasury and assigns it the responsibility of overseeing the daily operations of the Local Government Revenue Department, which serves as its administrative body (Ogbonna, et al., 2012). The committee is headed by a Chairman/CEO and’ is responsible for the collection of taxes which includes but not limited to shops and kiosks rates, tenement rates, marriage, birth and death registration fees, cattle tax-payable by cattle farmers only; customary burial ground permit fees, signboard and advertisement permit fees, market taxes government treasury liquor license fees, slaughter slab fees, naming of streets registration fee excluding any street in the state capital, right of occupancy fees on lands in rural areas excluding those collectible by the federal and state governments, market taxes and levies excluding any market where state finance is involved, motor park levies, domestic animal license fees, bicycle, truck, canoe, wheel barrow and cart fees, merriment and road closure levy, radio and television license fees (other than radio and television transmitter) vehicle radio license fees (to be imposed by the local government of the state in which the car is registered), wrong parking charges, public convenience, sewage and refuse disposal fees, customary burial ground permit fees, religious places establishment permit fees, Signboard and advertisement permit fees etc., (Ogbonna et’al, 2012). The individual further observed that the implementation of the aforementioned taxes within local government jurisdictions is hindered by inefficiencies stemming from inadequate infrastructure, a lack of qualified personnel, insufficient incentives for tax officials, instances of tax evasion, and public resistance to tax payment. These challenges arise from a combination of limited awareness, self-interest, and corrupt behaviours among tax officials.

1.2 Statement of the Research Problem
Over the course of time, it has been noted that a significant obstacle encountered by local government areas is the limited compliance of individuals in fulfilling their tax obligations in a timely manner, which is crucial for fostering economic development. The incidence of tax evasion and tax avoidance is experiencing an upward trend in local government regions (Adebisi, 2010). One potential issue lies in the inadequate enforcement mechanisms of tax legislation within local government jurisdictions, which allows individuals to contravene these rules without facing consequences. This situation poses a significant obstacle to the progress and advancement of these areas (Afuberoh & Okoye, 2014). Additionally, the author noted that individuals responsible for tax administration lack the requisite resources to effectively carry out their duties. The individuals in question frequently lack the necessary resources, training, and support, resulting in disillusionment, discouragement, frustration, and subsequently, suboptimal service provision. Based on available evidence, it can be seen that tax administration within local government districts is commonly characterised by substandard performance and inefficiency. Numerous justifications have been provided to account for the inadequate condition of tax management. Numerous levels of government, tax authorities, tax professionals, and institutions have made efforts to enhance the tax administration apparatus inside local government jurisdictions, although these endeavours have proven unsuccessful. According to Okwara and Amori (2017), even tax policies that are considered beneficial nevertheless suffer from inadequate and dishonest execution. Despite the aforementioned endeavours, numerous challenges persist that hinder the establishment of an effective and efficient tax system within local government regions. Consequently, the researcher has been compelled to pose the subsequent study inquiries.