CHAPTER ONE

1.1       INTRODUCTION

Information and communication technology is often used as an extended synonym for information technology(IT), but is a more specific term that stresses the role of unified communication and the integration of computers as well as necessary enterprise software, middleware storage and audio-visual systems, which enables users to access, store, transmit and manipulate information,

The term ICT is also used to refer to the convergence of audio-visual and telephone networks with computer networks through a single cable or link system. There are large economic incentives when telephone networks are merged with the computer network system using a single unified system of cabling, signal distribution and management.

1

When put simply, information and communication technology (ICT) would refer to an umbrella that includes any communication device or application, encompassing radio, televisions, cellular phones, computer and network hardware and software, satellite system and so on, as well as the various services and applications associated with them, such as video conferencing and distant learning(Brandy et al, 2003)

The term tax administration on its own could easily be explained as the administration, management, conduct, direction, and supervision of the execution and application of the internal revenue laws or related statuses (or equivalent laws and statuses of a state) and tax convention to which the united states is a party. Simply put, it can also be seen as the development and formulation of tax policies relating to existing or proposed intent revenue laws, related statutes and tax convention. Tax administration includes assessment, collection, enforcement, litigation, publication and statistical gathering functions under such laws, statutes or conventions.

2

The earliest trace of any form of direct taxation in Nigeria even before the British administration was in northern Nigeria. The north was favoured for this because it had a form of organised central administration under the emirs unlike the south which except in few places in the west was not so organised.(Nigeria Bureau For Tax Management, 2006)

Tax administration has some major importance that stands it out as a phenomenal concept. Few among these importance include that taxation been one of the major source of revenue to the Nigerian government, it is a source to think of in both the federal and state budget, therefore its administration come in handy in helping these arms of government manage efficiently, these tax as a major income source.

With regards to the modernization of internal management process, tax administration generally have full autonomy to adopt information and communication technology (ICT), depending only on their own resources.

3

However, the modernization requires a strong interaction with tax payers and other organisations of the society. In these regards, the broad use of ICTs, considering also the legal aspect is essential (This Day national daily, 2010)

The case study analysis shall aim at determining the impact of information and communication technology (ICT) as a veritable tool for effective tax administration in Nigeria, using a case study of board of internal revenue, Kaduna state).

1.2 STATEMENT OF THE PROBLEM.

Though it has been confirmed that to an extent, the Nigeria tax administration boards have migrated to the use of information and communication technology, however its migration have not really been of impact in tax administration because it has not fully adopted the modern day information technology system. Certain reasons are said to be responsible

4

for this failure in complete adoption of the system, and these reasons are briefly highlighted below.

1.     BEAURACRATIC AND ARCHAIC NATURE OF PUBLIC OFFICERS: In Nigerian tax administration system; there has been an increasing challenge in the complete adoption of information and communication technology (ICT) in the administration of tax. This problem that is mostly caused by the beauracratic and archaic nature public officers, acting as administrators has large contributed to the impending slow development and crippling nature of the nation’s tax administration system.

2.     CORRUPTION: Since corruption has eaten deep into the fabrics of the Nigerian Civil service and by extension tax administration boards, it has limited the complete adoption of information technology since in most cases, directors and most high ranking officers in the service

siphon funds allocated to the upgrading of information system.

5

3.     ILLITERACY: most public officers do not understand the dynamism that exist in communication technology, therefore raising issues of concern as to how officers would adopt easily to using modernised communication equipment.

How ever, this research work is billed with the responsibility of broadly confronting the problem challenging the making information and Communication technology a veritable tool for effective tax administration citing a case study with the board of internal revenue, Kaduna state.

1.3       STATEMENT OF HYPOTHESIS

1.     H0. There is no effective tax administration system in the board of internal revenue of Kaduna state.

H1. There is a n effective tax administration system in the board of internal revenue of Kaduna state.

2.     H0. Information and communication technology is not given significant

attention in the board of internal revenue of Kaduna state.

6