FINANCIAL ABUSE IN THE PUBLIC SECTOR
(A Case Study Of Federal Inland Revenue Service Headquarter Abuja)
Table of content……………………………………………………………………… viii
of the study - - - - - - 1
of the problem - - - - - 6
of the study - - - - - - 7
of the hypothesis - - - - - 8
of the study - - - - -- - 9
of the study - - - - - - - 9
background of FIRS - - - - - 10
of terms - - - - - - 12
review - - - - - - 15
of tax - - - - - - 15
of revenue to the federal government - 19
source of revenue - - - - 22
control of funds in federal government 26
Introduction - - - - - - - 29
and sample size - - - - 31
technique - - - - - - 32
and method of data collection - - 32
of data analysis - - - - - 33
for the choice - - - - 34
presentation, analysis and interpretation
Introduction - - - - - - - 35
presentation and analysis - - - 38
of hypothesis and interpretation - - 38
of findings - - - - - 41
Summary, conclusion and recommendation
Summary - - - - - - - - 44
Conclusion - - - - - - - 46
of the study - - - - - 50
- - - - - - 51
References - - - - - - - 54
OF THE STUDY
The main objective of writing this project “on the
evaluation of financial abuse in the federal inland revenue service” is to
bring to the notice of the readers the source from which government derived its
revenue and how its expenditure controlled and also to identify the evaluation
of financial abuse in the federal inland
revenue service and some control measure which the government can adopt in
order to present the financial abuse in federal inland revenue service.
The appropriate govern46ment organ institution on
largely responsible for the collection of tax is the federal inland revenue
service while the office responsible for the accountability of the money
collected on behalf of the government is the revenue mobilization and fiscal
commission operated as a department in the federal ministry of finance.
As part of the re-organization the federal
government of Nigeria
found it necessary to create revenue division from federal ministry of finance.
This made it an autonomous body known as Federal Inland Revenue service, the
board become more effective in collection of revenue for the federal
Financial abuse in the public sector is an attempt
by which the government allows the financial mismanagement, embezzlement and
wastes in it’s sector and to identify the various key area that course all
abuse in the public sector and also examine the method to used. All abuses
therefore this research would go deeply into the plan in the organization in
the financial aspects, check the accuracy and reliability of the accounting
clate promote operational efficiency .and encourage adherence to prescribed
official ‘polices and guideline.
In consideration of this topic, therefore is that
there must be some element in which every organization must adopts the ones
that are necessary for the controlling some financial transactions in that
organization custody and security of Assets. The background of the study is to
identify the various source of revenue for federal in land revenue service are
as ‘follows, VAT, Personnel Income Tax, Custom Duties Company Income Tax,
Education Taxe Capital Gain Tax, Import Duties and Export Duties Petroleum
Profit Tax, etc are allocated to the various department project and to examine
the financial record of federal inland revenue service to know whether there is
adequate system of internal control in the organization. The evaluation of
financial abuse in the federal Inland Revenue service encountered some likely
peculiar issue has regarding to financial record accuracy of the tax administration
have received a lot of attention and commentance, some people have advocated
for an over haul of over system. That we should do things that are peculiars to
environment and these that are not should be left out. The board is faced with
a lot of problems which include:
OF PERSONNEL: The
personnel department play an important role in the system of revenue collection
in the state, this shortage of staffs is capable of impairing the objective
time of maximizing personnel income tax revenue by 1996. The senior officials
in the federal inland revenue services of intend revenue was 286 but present
were 354, the reduction percent was at minimum of 50%.
OF ASSESSMENT TAX: Assessment
problem centres among the location of the personnel income tax and the
determination of his assessable income, effectiveness within the content of
personnel income tax administration may be measured in terms of the ratio of
actual to potential coverage.
AMONG TAX PAYER: The
tax payer default in paying the exactly amount by bribe of the tax collector in
order to reduce the actual amount collected as a taxes.
AMONG TAX OFFICIALS: In
the processing of collection of the revenue tax, officials must especially the
tax collector print their receipt booklet and issued to the tax payer without
their knowledge and mea ‘while that the duplicate carries is not what the
original was reading, they may use carbon paper to the duplicate, at time the
revenue collector would received the money from the tax payer with out even
issue of receipt to them.
5. INFLATION: the persistent rises in general price of goods
and services the purchasing power of salary continue to dwindle thud your
salary could not buy you even enough food for the month, therefore with this
problem the employees of public sector means of through variety of ways in
order to make and meet most of these ways are either fraudulent or illegal in
OF DUTIES: most of the
staffs neglect there duties and display goes official of conduct e.g. absenting
from duty perior to officially articulated closing hours. Others may report
late and depart arbitrantly leaving work load to pile up. In addition, public
funds generated are either misappropriated or pocketed for their personal use.
the activities of individual staff is very important, any attempt to allow the
staff to work independent without monitoring and supervisor assign
responsibilities without authority may makes co-ordination very frauds
difficult could be arisen.
There are methods which
should be used in detection of the effect of financial abuse in the ‘public
sector as follows:
a. Internal control system
and cheque received by post
sales and collections
OF THE PROBLEM
Despite the econumous disadvantage of the
financial abuse in the public sector, federal ‘inland revenue service is
experiencing a lot of problems with regards to mismanagement of funds which
includes the cost capturing is one of the financial abuse in the federal inland
revenue service, the ‘officials are not available to record that mostly in
respect of capital income tax and valued added tax which if properly capture
would not boost the nation revenue base.
Delay in the remittance is another financial abuse
in federal Inland Revenue service, inability of reflection of accurate figures
in federation account, it extremely difficult which will result in exisizing
Failure of some staffs to declare their valued
added tax collection and proper actions would not be taking in headquarters
because of the involvement of some personnel in the headquarters, the revenue
mobilization allocation and fiscal commission has urge federal Inland Revenue
service to intensify its effort in recouvering huge amount of money from the
OF THE STUDY
- To identify various source ;of revenue in Federal
inland revenue services Abuja.
- To identify whether there is adequate internal
control system in federal Inland Revenue service Abuja.
- To examine the adequate and qualification of staff
working in federal inland revenue service Abuja
- To identify problems faced by federal Inland
Revenue service in tax collection.
- To find out the causes of financial inefficiency
in federal Inland Revenue service Abuja.
OF THE HYPOTHESIS
In every research work, it is every important for
the researcher to make statement of hypothesis which may give the researcher
the direction to think with respect to the research topic. This will enable the
researcher to find a way of solving the research problem.
Research hypothesis usually give the researcher
more insight into the problem under investigation thereby enabling the
researcher to frame questions that are relevant to the research problems so as
to find possible solutions to such problem for this research study, the
following hypothesis would be formulated to enable the researcher to device
means of solving research problem.
Ho = Evaluation of financial abuse in the public sector is not
operation of federal Inland Revenue service
Ha = Evaluation
of financial abuse in the public sector is the efficient
operation of federal Inland Revenue service
OF THE STUDY
The study will be of benefit to various people as
1. Students – for it would useful to student
for further research in the same field of study.
2. Government – In order to effect necessary
change and ensure that money is being channeled in an efficient manner.
3. Federal Inland Revenue Services will benefit
(FIRS) in assessing and evaluating efficient operation of tax collection.
SCOPE OF THE STUDY
In as much as the researcher desired to provide as
much material facts as possible with respect to the topic under study a number
of fact or prevented me from doing so. First is monetary constraints. The
researcher faced the problems of financial disability which is needed from the
beginning to the end of the research work lack of money has hindered me from
collecting more data for the study.
Time limit was also a hitch in the pursuance of
the project work. The researcher being a worker and student at the same time
suffered the constraint of getting time to visit the school library and his
supervisor for relevant information and enlightenment board in order to prevent
financial uses in the limitation of the research of the study will also be
highlighted once more.
HISTORICAL BACKGROUND OF THE FIRS
The Nigerian Federal Inland Revenue Service was
created in 1943. It was carried from the erst while Inland Revenue Department
that covered what was then the Aglophone West Africa (including Ghana, Gambia, Sierraleaon) during the
Tax provider revenue to fund government ensures
resource redistribution, streanlines consumption of certain goods and services
reduce inflation and generates employment.
The Federal Inland Revenue Services is
constitutionally empowered to collect taxes.
In 1958 the board of Inland Revenue was
established under the income tax ordinance of 1958. The name was later changed
in 1960 when the Federal board of Inland Revenue (FBIR) was established under
section 4 of the companies and income tax Act (CITA) No 22 Of 1961 FBIR
operated then as department in the federal ministry of finance a further
transformation took place in 1993 when the finance (miscellaneous taxation
provisions) Act No. 3 of 1993 established the Federal inland revenue service
FIRS as the operational arm of FBIR the Act also created the office of the
executive chairman of the board. In 2007, the Federal Inland Revenue service
establishment Act (2007) which granted authonomy to the service was enhanced.
The federal Inland Revenue service decided to publish a list of our operational
offices, jurisdiction and telephone numbers.
This directory is a guide to all tax payers on how
best they could access our services, it is our hope that this directory will
forter continous interaction between FIRS and tax payers and guide the service
on how best we can serve you. The boards consist of:
executive chairman of the service who shall be experienced in taxation as
chairman of the service to be appointed by the president and subject to be
confirmation of the senate.
workers with relevant qualification and expertise who shall be appointed by the
president to represent each of the six geo-political zones.
representative of the attorney general of the federation.
governor of the central bank Nigeria
or his representative.
representative of minister of finance not below the rank at director.
1.8 DEFINITION OF TERMS
It is always necessary for
the research to define terms that are frequently used in the research work the
following are some of the terms used.
1. Internal control system: To carry on the affair of
an organization in orderly manner safeguard the assets and secure the accuracy
and reliability of the ……….
2. Cash and cheque received by post: To ensure that
cash and cheque received by post are accounted for and records in the book.
3. Cash sale and collection: To ensure that all the
cash from cash sales and collection which should be received is properly
accounted far and of properly recorded.