ABSTRACT

 It is an indisputable fact that the survival of any Government depends much on the substantial measures of internally generated revenue. Of course, most Governments; State and Local Government depend on the personal income tax as their main source of revenue. In view of this, the procedures for assessment and collection should be improved to check tax evasion and increase the revenue from personal income tax. This research is aimed at studying the machinery and methods involved in the assessment and collection of personal income tax in Abia State Board of Internal Revenue, to find out if this method and machineries are adequate in checking tax evasion. The primary and secondary data were employed in obtaining useful in formation for this research; questionnaires were distributed both to tax officials and tax payers. Interviews and personal observations were also conducted. Simple percentage and chisquare statistical test were used to test the formulated hypothesis. Based on these analysis and tests, the following findings were made: the tax payers are reluctant to pay because they lack the basic amenities in their areas, the assessment and collection machinery are inadequate, hence the high level tax evasion, and the tax payers attitude adversely affect the assessment and collection of personal income tax. The research therefore wishes to conclude that tax payers should avoid tax evasion and understand that Government uses the income from taxes and grants to provide the basic amenities they need and the government should embark more on rural development rather than the ongoing massive urban development. There should be vigorous tax education to enlighten the masses on the need to pay tax, the Government should provide the tax payers with such amenities as hospitals, good roads, pipe borne water and electricity to boost their moral in paying.