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CHAPTER ONE
INTODUCTION
BACKGROUND 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 government.
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 in Nigeria 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 Nigeria environment and these that are not should be left out.
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