APPRAISAL OF THE CONTRIBUTIONS OF TSA IN BOOSTING TAX REVENUE IN NIGERIA
CHAPTER ONE 1.1 APPRAISAL OF THE CONTRIBUTIONS OF TSA IN BOOSTING TAX REVENUE IN NIGERIA: Background To The Study
The collection of Tax and other income constitutes the fundamental source of revenue for the government. According to (Olaoye, 2008), Tax constitutes a mandatory levy imposed by the government on firms and individuals to facilitate the generation of revenue for the execution of government plans and programs. Therefore, the successive government has formulated policies towards enhancing the collection of tax. And Another revenue of government one of which is the Treasury Single Account TSA that was recently instituted by the federal government. The measure requires all revenue-generating agencies of government to close their accounts with commercial banks and remit all generated revenues into the Treasury single an account of government. The implementation of Treasury Single Account is for the e-collection of Government revenues of all agencies, department, and Federal Ministries to facilitate transparency and accountability in compliance with section 80 and 162 of the constitution of the Federal Republic of Nigeria 1999 (as amended) which stipulate that, all revenue of the Federal Government or any of her agencies shall be paid into a single account for proper monitoring. It should be noted that prior to the development of the single treasury account, all agencies, departments, and federal ministries operated several individuals accounts and remitted revenues to the federation account as well which were not properly accounted for leading to severe shortfalls of the federation account. The shortfalls were a result of leakages of funds, fraud, and corruption in the public service. Consequently, the preparation of the Budgets was based on false projection leading to poor implementation. TSA, therefore, was to constitute a” unified structure of bank accounts of the government which provides a consolidated account of government cash resources. The TSA is a set of linked accounts belonging to the federal government through which all its receipts and payments are transacted. According to Adeolum, (2015) The implementation of the Treasury Single Account will facilitate proper cash management, eradicate leakages that occur through multiple accounts of government with the commercial bank and provide accountability and transparency in government receipt and expenditure. It is believed that TSA shall facilitate the revenue-generating capacity of the federal government through internally generated revenue of tax revenue in Nigeria. Thereby facilitating accountability and transparency. The research, therefore, seeks to proffer an Appraisal of the contributions of TSA in boosting tax revenue in Nigeria
1.2 APPRAISAL OF THE CONTRIBUTIONS OF TSA IN BOOSTING TAX REVENUE IN NIGERIA: Statement of the Problem
Nigeria has come under the serious challenge of the prevalence of corruption where public funds and resources are being diverted for personal gains or misused and the apparent lack of accountability and transparency in public service. This has led to the looting of public funds thereby rendering the government treasury empty. Therefore the apparent need to boost government revenue and enhance accountability and transparency in government precipitated the need for the Treasury Single Account. The collection of Taxes and other income constitutes the fundamental source of revenue for the government. According to (Olaoye, 2008), Tax constitutes a mandatory levy imposed by the government on firms and individuals to facilitate the generation of revenue for the execution of government plans and programs. Therefore, the successive government has formulated policies towards enhancing the collection of tax. And Another revenue of government one of which is the Treasury Single Account TSA was recently instituted by the federal government. The measure requires all revenue-generating agencies of government to close their accounts with commercial banks and remit all generated revenues into the Treasury single account of government.
TSA, therefore, was to constitute a” unified structure of bank accounts of the government which provides a consolidated account of government cash resources. The TSA is a set of linked accounts belonging to the federal government through which all its receipts and payments are transacted. According to Adeolum, (2015) The implementation of the Treasury Single Account will facilitate proper cash management, eradicate leakages that occur through multiple accounts of government with the commercial bank and provide accountability and transparency in government receipt and expenditure. It is believed that TSA shall facilitate the revenue-generating capacity of the federal government through internally generated revenue of tax revenue in Nigeria. Thereby facilitating accountability and transparency. Therefore, the problem confronting the research is to proffer an Appraisal of the contributions of TSA in boosting tax revenue in Nigeria.
1.3 APPRAISAL OF THE CONTRIBUTIONS OF TSA IN BOOSTING TAX REVENUE IN NIGERIA: Objectives of the Study
To describe the contributions of the treasury single account on boosting tax revenue. To assess the process involved in the implementation of a treasury single account. To establish the disadvantages of a treasury single account on tax revenue management.
1.4 APPRAISAL OF THE CONTRIBUTIONS OF TSA IN BOOSTING TAX REVENUE IN NIGERIA: Research Questions
What are the contributions of the treasury single account on boosting tax revenue? What is the process involved in the implementation of a treasury single account? What are the disadvantages of treasury single account on tax revenue management?
1.5 APPRAISAL OF THE CONTRIBUTIONS OF TSA IN BOOSTING TAX REVENUE IN NIGERIA: Significance of the Study
i. To proffer the role and impact of TSA in revenue elevating the revenue of government in Nigeria. ii. To provide sufficient information on TSA in boosting revenue in Nigeria.
1.6 APPRAISAL OF THE CONTRIBUTIONS OF TSA IN BOOSTING TAX REVENUE IN NIGERIA: Research Hypothesis
Ho: The contribution of TSA in boosting tax revenue in Nigeria is low
Hi: The contribution of TSA in boosting tax revenue in Nigeria is high
1.7 APPRAISAL OF THE CONTRIBUTIONS OF TSA IN BOOSTING TAX REVENUE IN NIGERIA: Scope of the Study
The study focuses on the Appraisal of the contributions of TSA in boosting tax revenue in Nigeria.
1.8 APPRAISAL OF THE CONTRIBUTIONS OF TSA IN BOOSTING TAX REVENUE IN NIGERIA: Limitations of the Study
Some of the constraints confronted in the research included logistics and geographical factors.
1.9 APPRAISAL OF THE CONTRIBUTIONS OF TSA IN BOOSTING TAX REVENUE IN NIGERIA: Definition of Terms
Revenue Government annual income from which public expenses are met.
Tax:
A compulsory contribution imposed by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.
Accountability:
The requirement to provide transparent disclosure of revenue receipt and expenditure of the government.
Transparency:
To be open, honest, and clean
TSA DEFINED:
IMF (2010), states that TSA, therefore, was to constitute a” unified structure of bank accounts of the government which provides a consolidated account of government cash resources. The TSA is a set of linked accounts belonging to the federal government through which all its receipts and payments are transacted
.