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INTRODUCTION1.1 BACKGROUND OF STUDY.Every country in the world tends to generate income through tax administration. In Nigeria the income tax administration aims and tries to tax each in the state more effectively. However the level at which the income tax inistration in Nigeria tend to achieve its desired goals and objectives depends mostly on the tax office and the that is operating in state.For the tax inistration in Nigeria to be effective the aspect of the companies been taxed should be considered adequately and more accurately so that the would provide reliable financial performance information for assessment. In which the federal government derives its income.Due to the ever changing tax administration policies in the country and modifications in the aspect of taxation in Nigeria some companies want to stay afloat and employ all kind of strategies that benefits them. Some of them evade tax and some avoid tax.When tax in Nigeria is paid by the various companies operating in the state the revenue collected are used to provide utility services and providing additional government services such as in education and transport which are of great importance to the growth of the economy of the state and to the countryTax administration in the country is a very important aspect that assist in the provision of revenue to the economy of which the avoidance of tax payment by the companies in the country in general and in state in particular will result to a serious damage to the revenue which should have been generated and used for the provision of infrastructure.When a is been taxed by the federal board of inland revenue (FBIR) the is meant to give an accurate information about their income but some companies go to the extent of forgery in provision of their documents which gives an incorrect information to the board, thereby causing reduction in their tax assessment.Based on the above observation or trend of this action over time this study set out to examine the problems and prospects of the income tax administration in Nigeria and in state to be precise.


The tax administration (collection and assessment of tax from companies is a difficult task. The assessment and collection of companies’ income tax as at when due has been a problemAssociated with income tax administration in Nigeria. These problem through observation has been influenced by the following understated factors.

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