Background of the Study
Decentralized tax collection systems have been adopted in many local government areas (LGAs) to promote greater efficiency, transparency, and citizen participation in tax administration. In Soba LGA, decentralized tax collection systems were introduced to improve tax compliance and increase local revenue. However, the effectiveness of these systems in achieving their goals is not well documented.
This study aims to evaluate the effectiveness of decentralized tax collection systems in Soba LGA, focusing on their impact on tax compliance, revenue generation, and local governance. By examining the strengths and weaknesses of the decentralized approach, this study will provide insights into its potential for further implementation or modification.
Statement of the Problem
Soba LGA implemented decentralized tax collection systems to improve tax administration, but there is limited information on how well these systems are functioning and their impact on revenue generation and compliance. This study seeks to evaluate the efficiency and effectiveness of decentralized tax collection in Soba LGA.
Aim and Objectives of the Study
Aim: To evaluate the effectiveness of decentralized tax collection systems in Soba LGA.
Objectives:
To assess the impact of decentralized tax collection systems on tax compliance in Soba LGA.
To evaluate the role of decentralized tax systems in increasing local government revenue.
To recommend strategies for improving decentralized tax collection systems in Soba LGA.
Research Questions
How do decentralized tax collection systems affect tax compliance in Soba LGA?
What impact do these systems have on revenue generation at the local level?
What improvements can be made to enhance the effectiveness of decentralized tax collection in Soba LGA?
Research Hypothesis
H₀: Decentralized tax collection systems do not significantly affect tax compliance in Soba LGA.
H₀: Decentralized tax collection systems do not significantly impact local government revenue generation.
H₀: Improving decentralized tax collection systems will not significantly improve compliance or revenue generation.
Significance of the Study
This study will provide a comprehensive evaluation of decentralized tax collection systems in Soba LGA, offering insights that can inform policy decisions and improve tax administration practices.
Scope and Limitation of the Study
The study focuses on the evaluation of decentralized tax collection systems in Soba LGA. Limitations include the difficulty of obtaining data on the specific impacts of decentralization and potential bias in responses from local tax authorities.
Definition of Terms
Decentralized Tax Collection: The delegation of tax collection duties from central authorities to local governments or agencies.
Tax Compliance: The extent to which individuals or businesses comply with tax laws and regulations.
Local Government Revenue: Funds generated by a local government through taxes and other means.
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