CHAPTER ONE
INTRODUCTION

1.1 BACKGROUND OF THE STUDY
The system of tax collection and administration in Akwa Ibom State has been carryout towards the socio economic objective of the state. Tax could be defined as the public sector in order to accomplish some of the nation economic and goal. The primary economic goal development countries is to increase the rate of economic growth and hence the per capital income which will lead to the higher standard of living. Every tax imposed on an organization changes everyday as new court rulings are announced and as lows made that every entity transaction must therefore be alert to such charge. Since it inception taxation of corporate income has been a pervasive force tending to influence the economic development of the entities. Taxation is not the only sources of internally generated revenue of the state, other as shown in the approval recurrent and capital expenditure estimates of Akwa Ibom State (official document no.7 and 8 of 1993 -1994) include such source as fine and fees, license and sale read from government property interest receipt and dividends as well as other sources. Other major sources of revenue available to Akwa Ibom State as documented in the state, in other words any rational economic development should be on after tax consideration basic, they are taxed heavily, sometime double taxation and one wonders whether their problem of management and development attributed to high rate of tax on investment in efficiency of the investor. Tax Assessment

This is because the double taxation on such cooperation as limited liability company will continue to effect the residual profit made. Tax Assessment

It is therefore much interested in such constraints taxation has posed to the investor and how it can be reduced. However income tax rule and regulation are such that informs, investors reduce the amount of their tax ability through various proper and timely actions. It is therefore the research aspiration to find a way of breaking through this concentration. Tax Assessment

1.2 RESEARCH PROBLEMS
In Nigeria, tax collection and administration is said to be the most variable source of revenues to the nation and therefore foster the economic development of the nation. It is also difficult to ascertain what impact or effect, if any dose tax collection and administration has to do with developing the economy considering greater diversities in government management abilities. All government including developed and under-developing countries in the world still impose different kind of tax on her citizens not withstanding the fact that there are several other sources in which revenue are accrued. Tax Assessment

1.3 OBJECTIVE OF THE STUDY
– To find out government development on economy using the proceeds of tax collection and administration of Akwa Ibom State.
– To find out the various income tax rule and regulations Akwa Ibom State and their profit.
– To identify the steps to be adapted to increase tax yielding sources of Akwa Ibom State.
– To the recommendation and suggestions on economic development through tax collection and administration.

1.4 RESEARCH QUESTIONS
– Does the government develop our economic using the proceeds of tax collection and demonstration?
– What are the steps to be adopted to increase tax yielding sources of Akwa Ibom State?
– Is there any main source of revenue available to the government of Akwa Ibom State?
– Does the proceeds derived from tax collection and administration have any impact on the economy development either positively or negatively?

1.5 RESEARCH HYPOTHESIS
Ho: There is no significant relationship between tax collection and administration on economic development in Akwa Ibom State.
HI: There is significant relationship between tax collection and administration and economic development of Akwa Ibom. Tax Assessment
Ho: Government does not develop our economy using the proceeds of tax collection and administration.
HI: Government develops our economy using the proceeds of taxs collection and administration.

1.6 SIGNIFICANCE OF THE STUDY
It would provide the necessary information about how taxation implication on effect of economic development should be managed and controlled
It would also help the potential investors to remedy the problems associated with taxation of corporate income. The management of UYo Local government can also use it as a guide effective, some student can also use it as guide while research on this same topic.

1.7 SCOPE OF THE STUDY
The scope of this study was centred in one local government council, Uyo Local government council with effect of tax collection and administration on the economic development of Akwa Ibom State.

1.8 LIMITATION OF THE STUDY
One of the major limitations of this study is the security of data in terms of secondary information, some are the respondent were reluctant to attend to the researchers on the oral interview.
Also were limited financial resources in terms of transportation, photocopy and as well as time constraint. Given this reason, the rsearcher had to share the available time between his routine domestic work and other casework.

1.9 DEFINITION OF TERMS
In order to entrance quicker conception the following terms used in the study has been defined:
Taxation: Is one of the instruments of fiscal policy in a capitalist economy.
Administration: As the management of public or business affairs the day to day administration in accordance with established rule and regulation (Parest, 1999).
Assessment: Is the process of valuation of properties for taxation, it is valued as determination of the amount of money as a taxs of their fine or person properly (Kindles Degar, 1981).
Economic Development: Is defined as improvement in material welfare especially for person with low income (Degar, 1981).
Tax Authority: Defined as detects of federal level charge with the administration of certain kind of taxs (Davids, 1981).
Tax Evasion: Is defined as the deliberate act by a taxs payer to illegally reduce or totally escape his or her taxs liabilities and relevant taxs duties (Eskastaing 1961).
Income Tax: Income is defined as amount of found goods or services, received by an individual cooperation or economic in a given period (Pearce, 1985).
Tax Sharing: Is defined as a practice where by the level of government such as state levies taxs and share the proceeds with a lower level of government such as country or town (Greant, 1985).

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