Brief Introduction

Tax is defined as money that has to be paid to the government by the people according to their profits on goods and services provided. Chris and Elizabeth (2001) also defined taxes as a forced proportional contribution from persons and property levied by virtue of its severity for the support of government and for all public needs. (Cited in Angahar and Alfred 2012).

The serious decline in the price of oil in recent years has led to a decrease in the funds available for distribution to the federal and state Government. The need for state and local governments to generate adequate revenue from internal sources has therefore become a matter of extreme urgency and importance. This need underscores the eagerness on the part of state and local governments and even the federal government to look for new sources of revenue or to become aggressive and innovative in the mode of collecting revenue from existing sources. (Afuberoh and Okoye 2013).

Aguolu (2014), states that though taxation may not be the most important source of revenue to the government in terms of the magnitude of revenue derived from taxation, however, taxation is the most important source of revenue to the government, from the point of view of certainty, and consistency of taxation. Aguolu (2014) further mentioned that taxation is the most important source of revenue to the government. Owing to the inherent power of the government to impose taxes, the government is assured at all times of its tax no matter the circumstances. (Cited in Afuberoh and Okoye 2013).

The desire to uplift one’s society is the first desire of every patriotic citizen. Tax payment is the demonstration of such desire. The payment of tax is a civic duty and an imposed contribution by the government on their subjects and companies to enable her finance or run public utilities and perform other social responsibilities. (Adebisi and Gbegi 2013).

Table of Contents

page
Title page
Certification i
Dedication ii
Acknowledgment iii
Abstract iv
Table of content v-vi

CHAPTER ONE: Introduction
1.1 Background of study 1
1.2 Statement of the research problem 3
1.3 Research objectives 4
1.4 Research questions 5
1.5 Research hypothesis 5
1.6 Significance of study 6
1.7 Scope of study 7
1.8 Definition of terms 8

CHAPTER TWO: Literature review
2.1 Conceptual review of study 10
2.2 Theoretical review of study 22
2.3 Empirical review of study 27

CHAPTER THREE: Research methodology
3.1 Introduction 38
3.2 Research design 38
3.3 Research population 38
3.4 Sampling techniques and sampling size 38
3.5 Method of data collection 39
3.6 Model specification 39
3.7 Measurement of variables 40
3.8 Method of analysis 40

CHAPTER FOUR: Data Presentation, Analysis, and Interpretation
4.1 Descriptive Analysis 42
4.2 Correlation Matrics 43
4.3 Effect of personal income tax 44

CHAPTER FIVE: Summary, Conclusion, and Recommendation
5.1 Summary of research finding 46
5.2 Conclusion 46
5.3 Recommendation 48

BIBLIOGRAPHY 50
APPENDIX 53-54