This study deals with an evaluation of the management and utilization of tax revenue in Enugu State Board of internal Revenue. Chapter one of this work deals with the introduction, objectives of the study, research questions etc. Chapter two, literature review and some references were made to relate an evaluation of the management and utilization of tax revenue in a developing economy vice Nigerians. The chapter three of this work was where the research design and methodology were shown. Questionnaires were used to collect information (data) required. The populations were the staff of Enugu State Board of Internal Revenue. The sample sizes were determined to be (35) and the validity and reusability of instruments were shown. In chapter four, the data gotten from the questionnaire were presented and analyzed, also the hypothesis put up were vividly tested in this chapter. Finally, in chapter five, the findings from the data gotten were summarized. It also some reasonable recommendations were made.
1.1      Background of the study      
1.2      Statement of the Problem
1.3      Objectives of the study
1.4      Research Questions      
1.5      Statement of Hypothesis             
1.6      Significance of the study
1.7      Scope of the study
1.8      Limitations of the study
1.9     Definition of terms
      Theoretical Framework  
      Types of Taxation         
2.3      Tax Administration in Nigeria
2.4      Tax collection machinery in Enugu State      
2.5      Tax as an important source of government revenue in Nigeria          
2.6      Tax as a tool for Controlling Expenditure in the Economy   
2.7      Problems of Tax Collection in Nigeria    
2.8      Tax as an Element of Public Sacrifice    
2.9      Taxation in Developing Economies                     
3.1      Research Design    
3.2      Area of Study
3.3      Population of Study
3.4      Sampling Method   
3.5      Research Instrumentation     
3.6      Validity and Reliability of Research Instruments Sources of Data
3.7      Methods of Investigation      
4.1      Presentation and Analysis of Results    
4.2      Test of Hypothesis
5.1      Summary of Findings    
5.3  Recommendations
       The increasing cost of running government coupled with dwindling revenue has left various state governments in Nigeria with formulating strategies to improve the revenue base. Moreso, to improve the revenue base. Moreso, the near collapse of the National Economy has created serious financial stress for all tiers of government. Hardest hit are the state governments all of whom have experienced unusual reduction in their share of the national revenue from the federation account. Despite the numerous sources of revenue available to the various tiers of government as specified in the Nigeria 1999 constitution, since 1970s till now, over 80% of the annual revenue of the three tiers government of movement come from petroleum.
       However, the serious decline in the price of oil in recent years has led to a decrease in the funds available for distribution to the states. The need for state and local governments to generate adequate revenue form internal sources has therefore become a matter of extreme urgency and importance. This   need under scores the eagerness on the part of state and local governments and even the federal government to look for new sources of revenue or to became aggressive and innovative in the mode of collecting revenue from existing sources.
       The increasing cost of running government is becoming alarming some budgets find recurrent expenditures outplaying capital expenditures. This increasing cost of governance has forced some state to formulate other means of improving their revenue base. It is said that up till now the Nigerian economy has not been diversified from crude oil revenue only since the 1970s Nigeria revenue from crude oil stand over 80% of her annual revenue while other sectors such as th`e extractive sector and agriculture has received little or no attention or out rightly abandoned.
       However, the fluctuations of oil price in recent times, the total collapse of oil revenue in 2009, and the demand for higher and living wages by Nigerian labour congress had led a decrease in the funds available for sharing to the states and local government. It is therefore, paramount that the federal, state and local governments must generate adequate revenue from internal sources. 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 became aggressive in mode of collecting revenue from existing source especially taxation Kiabel and Nwokal, (2009).
       Also Nigeria is richly blessed with oil and gas among other mineral resources, but the over dependence on oil revenue for the economic development of the country has left much to be deserved. According to Ariyo (1997) Nigeria’s over dependence on oil revenue to the total neglect of other revenue source was encouraged by the oil boom of 1973/74. This is unsustainable due to the fluctuation in the oil market which have in most cases plunged the nation into deficit budgets. It was the view of Popoola (2009) that Nigeria tax administration and practice be structured towards economic goal achievement since government budget for the year centres on the oil sector.
Man, no matter his race, religion or creed, has always lived communally. In every society of man, there has been one form of levy or the other, imposed on the people from time to time, to generate resources to improve on their well-being or to institute one from control or another in the society.
Onovo (2005) recognized this public duty thus: “a tax is an impose by a state on persons who are resident or who earns income with in the state”. In the same vein Olukoya (1993), stated that “fundamentally, however, it is compulsory levy on income, since the decision to pay tax is not that of the tax-payer. No rational human being would voluntarily subject his earnings to tax. People pay tax because the law stipulates so”.
The resources raised from tax are used by the authorities (governments) to run the affairs of the state. In under developed economics the money realized through taxation is too meager as compared with other developed world. This results in shortage of capital. Therefore, the problem of capital formation in the under-developed economics, as it relates to public finance are broken down into three (3) main parts:
The first concerns the financing of social overhead investment, which must be undertaken by the government. The second deals with an intermediate zone, in which the actual investments or projects are in private hands, but the funds are made available through government finance (public finance/fund). The third deal with the necessary incentives to private investments, both domestically and internationally.  The instruments which are used to grant these incentives, to the private investments, are taxation and other fiscal measures.
In the above three (3) directed towards maximizing savings, mobilizing revenue for productive investments and directing or monitoring them so as to serve the purpose of a balanced development programme.
Lawal (2007), “Taxation is this: a system of mobilizing and moving resources between the different sectors of the economy. It is an instrument for redistribution of wealth among the people in an economy”.
Whenever tax matters are in discourse, it pre-supposes the existence of a higher authority in any given socio-economic system.   
To this end, tax is a universal liability and one cannot avoid the payment of tax just by avoiding the use of any amenity built with tax money. It is essential therefore, for one to understand that some amenities have inclusionary factors.  One cannot say, for instance, that does not want to benefit from national health services, electricity or water supply etc which have exclusionary factors. One can always avoid paying water or electricity bills just by abstaining from the use of it.
Further more, it is impossible to measure the amount of benefits derived by (A) from national defence as against that derived by (B). In order to ensure equity, therefore, (A) and (B) should pay the same amount as tax. The general determinants of the amount payable by each will now be their income. Lawal (2007), said “it should be realized that in most countries today, the government has become the greatest spender of money. Taxation has not only influenced the economy of these countries, it has also, become an important instrument of economic policies. Thus, an increase in government spending (tax money) rightly involves a corresponding decrease in individual spending.
Enugu State board of internal revenue is the agency or department of government that is responsible for tax collection in Enugu State. This board itself is an annex of the state ministry of finance, and the economic development and utilization of the tax revenue is their reasonability. The board has the power to assess and subsequently collect taxes from persons, institutions, organizations etc which are taxable within Enugu State, its area of jurisdiction. However, this is with the exception of united liability companies member of the armed forces, the police etc which are within the federal government exclusive list.
In less developed economics like Nigeria, the government is finding it increasingly difficulty to marshal the necessary resources in the right place at the right point in time. Bird et al (2000)”        in under developed economics, tax resources account for about (10-15) percent of national income while it goes up to 30-40 percent in advanced countries it is this, common knowledge that the less developed counties is the lower in ratio of tax payment to national income. This is as a result of ignorance of the main objective of taxation as well as the prescription of the efficiency or other wise of the management and utilization of tax revenue by the government. Hence these conditions must exist to ensure efficiency in income taxes.
a.    Existence of a money economy
b.    High standard of literacy among tax payers.
c.    Proper accounting records of tax proceeds
d.    Voluntary compliance by the tax payers
e.    Political stability
f.     Honest administration of tax revenues.
       These aforementioned conditions are often lacking in many cases. In essence, if a tax system is seen to be effective, it pre-supposes that efficient and self –accounting structure has been put in place to ensure maximum benefits for instance, some people argue that tax should be used to check unnecessary diversion of wealth and savings into land, inventories, building and other investments held for speculative or prestigious purposes. However, in as much as the government may levy some taxes to check the excesses of some individuals (i.e by reducing their disposable income). It should also use taxes as an economic catalyst. Nowadays, the term “tax-payer has expended to include both women in salaried employment and others with an identifiable source of income.
Furthermore, tax policies should be formulated in a way to encourage private initiative in commerce and industry. Another problem in taxation that should receive our due attention is public resistance against civic obligations, especially taxes.  It has now gotten to a stage where government employs the service of armed forces and even price fighters to do the job of tax collection so as to crush the resistance of tax defaulters.
But people should not wait to be coerced before they can perform their taxes.  How could we make the equation balance?  Even civilization has not given the city people needed education on the purpose of taxation.  Some opinion leaders contend that is it unwise to make sweeping generalization on people’s negative attitude to tax.
This is because some people are more interested in seeing the right  application for tax money rather than deliberate refusal to pay tax.  Quite often, there is a missing link between the tax collectors, the officials of the Board of Internal Revenue, and the point of payment into Government Treasury.  And so much money has  in this way been diverted to private pockets.
In principles, all adults from the age 18 years and above, but not above the age of retirement, if the tax payer is a salary earner, are liable to pay tax.  But in practice, it is only those that have known source of income that the law expects to pay tax.  However, every adults is a potential tax-payer and is consequently required to pay tax as a way of encouraging people to work for a living.
Every year, budgets are drawn within having a reliable estimate of expected tax revenue.  Nevertheless, tax is still expected to improve the economic life of the state and the nation at large.
A good number of government projects over the years have been abandoned because of reasons which are not clear enough to the citizens of Nigeria some of the project include roads, water project, electricity etc.  The problems are itemized as follows:
  Problem of inefficient tax collection machinery in Enugu State.
  There is problem of Tax avoidance and evasion.
  Problems on how to eliminate of tax avoidance and evasion.
  There are inequitable amenities provided by the government compared with tax revenue collected.
  Problem on how government could educate the public on the important of paying tax.
  Problem to apply Pay as You Earn (PAYE) on individual  and companies?
          To find out how efficient the present tax collection machinery in Enugu State is.
          To find out the major cause of dwindling tax revenue in Enugu State.
           To find out if the tax avoidance and evasion can be completely eliminated.
  To find out if the amenities provided by the government are in comparism to the tax collected.
  To find out the strategy which government should use to educate the public especially in the rural area who are predominantly illiterate on the need to pay taxes.
    To findout how efficient the present tax rate is.
  How effective is the tax collection machinery in Enugu state at present?
  What are the major causes of dwindling tax revenue in Enugu state?
   Could tax avoidance and evasion be completely eliminated?
  Are the amenities provided by the government in comparism to the tax revenue collected?
  How could the government educate the public on the importance of paying tax?
    How efficient is the present tax rate?
H0:  There is no inadequacy in the tax collection machinery  is Enugu State.
HI    There is inadequacy in the collection machinery in Enugu State.
Ho   Tax avoidance and Evasion are not the major cause of dwindling tax revenue the state.
HI   Tax avoidance and evasion are the major cause of  dwindling tax revenue in the state.
Ho: Direct collection of tax by the officials should not be used by government as a measure for collection of tax.
HI: Direct collection of tax by the officials should be used by government as a measure for collection of tax.
Ho: There is no in commensuracy in the provision of amenities by the government in relation to the tax collected.
HI:   There is incommensuracy in the provision of amenities by the government in relation collection.
It is hoped that this study will be immense assistance to:
i.            The government for it is to see the need to carry the people along in planning the programmes and projects which are to be executed with tax revenue.
ii.            This study will also help the general public to become more knowledgeable on the tax matters and the need to pay tax.
iii.         It is as well expected that the collectable revenue will rise, if the government would fully implement the recommendation.
iv.         Perhaps, with the enhancement in the revenue base of the government, resulting from the implementation of the accompanying recommendations made if this study non-payment of salaries, as well as, case of abandoned projects, due to lack of fund will become a thing of the past.
v.          The government will also understand the measures and means with which to educate the people and maximize its tax revenue.
Knowing how vast and demanding a study on this issue “taxation” could be the area of coverage in terms of geography in Enugu State. In terms of an evaluation of the subject matter, the study concentrate much on the management and utilization of tax revenue.
a.          Incidence Of Tax: This means the burden of tax, therefore the burden of tax responsibility falls on the tax payer or other individuals, indirectly
b.          Tax Payer: This is the individual institution or organization that has the duty to pay tax.
c.           Tax Evasion: This means in will full act of criminally which involves that the failure on the part of a taxable person to disclose his actual taxable income for the purpose of tax assessment and thereby escaping partially or completely from tax liability.
d.          Tax Avoiding: This is the legal method employed by individuals, organization etc paying taxes in order to minimize their tax liability.


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