ABSTRACT

Tax is a compulsory levy which the government impose on any taxable individual who has reached the age to pay tax. Income tax administration covers the responsibility of the relevant tax authorities for due assessment of, collection of, and accounting for all taxes imposed under the act. This work 'Income tax administration, challenges and prospects" appraised and reviewed the nature and state of income tax administration with the aim of identifying various challenges inherent in the administration of income tax. The need for this research work became very eminent since revenue generation through taxation has been one of the major ways that government use to fund it's expenditure. The test conducted on the above hypothesis was meant to find out whether there is a significant relationship between inability of government to provide basic amenities and income tax administration. And also whether there is a significant relationship between effective application of tax law and income tax administration. The data collection techniques employed in the study were both primary and secondary techniques. The population of the study was 100 workers and the sample size 80 which was derived from the population by the use of Taro Yamani formular as the statistical instrument. By this number structured questionnaires was distributed to respondents to seek their responses on the questions. The chi-square test (X2) was used in testing the liypothesis and judgments were made based on 95% confidence (i.e. 5% level of significance), and one degree of freedom. The major results of this study proved that government has not done enough in providing basic amenities for tax payers. In conclusion, this work is believed to have provided possible solutions to the problems under study and recommendations were also made for possible implementations.