ABSTRACT

This work is an appraisal of income tax administration in Abia State whereby the Abia State Board of Internal Revenue is used as a case study. The success achieved by the Board of Internal Revenue in meeting the targets set for its integrated tax offices nationwide is no doubt a challenge to its state counterparts. Personal income tax that is supposed to be paid by self-employed individuals in Nigeria constitutes a major source of revenue accruable to various state government of the nation. Unfortunately, the correct assessment and collection of taxes from these groups of taxpayers remains a mirage due to myriad of factors. This research work adopted a survey method in which a total of 138 questionnaires were administered to the entire staff of Abia central and Abia South zones of the board of internal revenue. The data obtained was analysed using simple percentages. From the findings, the work submits that the administration of personal income taxation in Abia State is poor, inefficient and ineffective, and its contribution to the overall revenue generation of the state is insignificant compared to other sources. This work therefore recommends that tax administration should have an effective redress and refund system so that disputes can be settled easily and corruption checked and also funding for tax authorities and custom services should be increased to 3-5 percent of the targeted revenue to ensure efficient administration in Abia State