Tax Compliance
CHAPTER ONE
INTRODUCTION
1.1. Background of the study
Before the introduction of formal taxes the chiefs of the Gold Coast had their own system of taxing the people. For instance in GA it was called “too” Ashanti there were taxes like “assaseto” it was to raise revenue through direct tax so during the assembly of chiefs summoned at Cape Coast in 19th April 1852, the Governor Major Hill passed a Poll Tax Ordinance. The poll tax ordinance imposed tax of one shilling per head on each man, woman and child in the colony. The poll tax was to be collected by officers appointed by the Governor with assistance of the chiefs. This tax was intended for the establishment of schools, markets etc. It is also for the improvement and extension of the judicial system, the provision of greater facilities of internal communication and improvement of medical care. The British government insisted that these developments must be paid for through direct and indirect taxes.
In the beginning of the 20th century the whole land was against direct tax in the Gold Coast. The local resistance to tax was so great that the colonial government had to self-finance in the Gold Coast. Only certain types of local taxes were feasible. Protest and refusal eliminated direct taxes of any nature. This continued to be the case throughout the 1930s. Plan to introduce income tax were shelled because of opposition and nationalist agitation.
In September 1931, Sir Ranford Slater, the then Governor of the Gold Coasts suggested the rate of six pence (6d) in the pound (4) on income in sterling of forty pound (400 and above per annum). This idea met public reaction that was unequivocal, instantaneous and vehement. This made the political atmosphere very explosive hence the idea was abandoned.
On 23rd February 1943, in a speech delivered to the Legislative Council, Governor Sir Burns proposed the introduction of taxation into Gold Coast. Although, not without protest from numerous groups notably from traditional rulers and with support from most newspapers, the proposed bill was presented to the legislative council and passed as Law on 22nd September, 1943, by Sir Allan Burns, the then Governor of Gold Coast. Just before independence and after independence, the government set up city and district councils to help with the collection of taxes and the development of the country. These councils were guided by the tax laws drawn by the Government.
1.2 Statement of the Problem
There is the perception that the collection of taxes in Ghana is not put to recognized use in the lives of the citizens in Ghana. This has made most of the citizens reluctant to pay their taxes in the pursuits of any business transactions. Taxes collected are purposely to be used in the development of every nation of which Ghana is not excluded. However it seems when the taxes are collected by the designated authorities they are not use for the intended purposes for which it was collected. Citizen’s continuously paying taxes without actually feeling and seeing the impact and effect in the economic development of their life is becoming an everlasting challenge in the process of collecting the taxes. It is expected that taxes collected should be utilized in all aspect of the economic life of the individual such as educational, health, sanitation, agriculture, roads among others. It is for this reason that is why the researcher considers it vital to conduct this study to assess the contribution of tax to the economic development of Ghana.
Objectives of the Study
The expected objective of the study is to assess the contribution of tax collection to the economic development of Ghana. However the specific objectives of the project will be as follows. a. To find out the types of taxes paid by the citizens of the state b. To find out how taxes are used in the economic development of the nation c. To identify the methods and procedures of taxes administration d. To identify the challenges associated with the collection of taxes
1.4 Research Questions
The objectives stated above will be achieved through finding answers to the under-listed questions a. What are the types of taxes paid by the citizens? b. How are taxes used in the economic development of the state? c. What are there any methods and procedures for the administration of taxes? d. What are the challenges associated with the collection of taxes?
1.5 Scope of the Study
The work will be limited to the management and staff of the Customs Excise and Preventive Service (CEPS).This will cover chief collectors, principal collectors, senior collectors, collectors, assistant collectors and collecting assistants. The work will also be limited to Ghana Revenue Authority with specific emphasis on Customs Division Headquarters, Accra.
Significance of the Study
Academically the study seeks to contribute to knowledge in the field of taxation administration. It will also contribute to strategic decision making in the area of the management of taxes collected. Additionally the study will assist policy formulators in the formulation of policies concerning the use of taxes for national development being it economical, social, educational, health and sanitation. The work will equally uncover the strategies which can bring increase in productivity in the mobilization and management of taxes. Above all, the study will serve as a reference material in our academic libraries for other students and practitioners of taxation.
Limitations of the Study
The researcher will encounter a lot of problems during the conduct of the study. The problems cannot be over emphasized. The major hurdle will be the unwilling attitude of the respondents to avail themselves for the schedule interview and structured questionnaire especially the management staff of such prestigious organization. Another difficulty that will hamper the progress of the study will be the combination of work and the study which may affect the quality of the study. The time limit will also affect the detail of the work. Notwithstanding all these imaginary problems the researcher is poised to face them in order to complete the project.
Organization of the Study
The research is organized into five chapters. Chapter one talks about the background of the study, objectives, statement of the problem, research questions and significance of the study. Chapter two is the literature review. Chapter three is the methodology which involves the type of research, the population, sample and sampling techniques, type of data, sources of data, instruments for data collection, instrument validity, the procedure for data collection and method of data analysis. Chapter four is where we analysis and discuss the research findings to satisfy the research objectives. Chapter five, the concluding chapter consists of summary, conclusions and recommendations.
CHAPTER TWO
LITERATURE REVIEW
Introduction
Ghana, since independence has depended on taxes for its national development. In view of this successive governments have instituted tax administrative structures to administer the various tax regimes in order to maximize tax revenue for national development. The purpose this studies is to assess the contribution of tax collection to the economic development of Ghana. The structures cover both the formal and informal sectors alike.
The Meaning
A tax (from the Latin taxo; "rate ") is a financial charge or other levy imposed upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many administrative divisions. Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent.
According to Black 's Law Dictionary, a tax is a "pecuniary burden laid upon individuals or property owners to support the government a payment exacted by legislative authority." It "is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority" and is "any contribution imposed by government whether under the name of toll, tribute, tallage, gabel, impost, duty, custom, excise, subsidy, aid, supply, or other name to (Black 's Law Dictionary, 1979)
Theories of Taxation
According to Bhartia (2009), a taxation theory may be derived on the assumption that there need not be any relationship between tax paid and benefits received from state activities. In this group, there are two theories, namely, * Socio-political theory * The expediency theory
Also, a taxation theory may be based on a link between tax liability and state activities. This reasoning justifies the imposition of taxes for financing state activities and also providing a basis for apportioning the tax burden between members of the society. This reasoning yield the benefit received theory and cost of service theory. There is also the faculty theory of taxation.
Socio political theory: This theory of taxation states that social and political objectives should be the major factors in selecting taxes. The theory advocated that a tax system should not be designed to serve individuals, but should be used to cure the ills of society as a whole.
Expediency theory: This theory asserts that every tax proposal must pass the test of practicality. It must be the only consideration weighing with the authorities in choosing a tax proposal. Economic and social objectives of the state as also the effects of a tax system should be treated irrelevant (Bhartia, 2009).
Benefit received theory: This theory proceeds on the assumption that there is basically an exchange relationship between tax-payers and the state. The state provides certain goods and services to the members of the society and they contribute to the cost of these supplies in proportion to the benefits received (Bhartia, 2009). Anyanfo (1996) argues that taxes should be allocated on the basis of benefits received from government expenditure.
Cost of service theory: This theory is similar to the benefits received theory. It emphasizes the semi commercial relationship between the state and the citizens to a greater extent. In this theory, the state is being asked to give up basic protective and welfare functions. It is to scrupulously recover the cost of the services and therefore this theory implies a balanced budget policy.
Faculty theory: According to Anyanfo (1996), this theory states that one should be taxed according to the ability to pay. It is simply an attempt to maximize an explicit value judgment about the distributive effects of taxes. Bhartia (2009) argue that a citizen is to pay taxes just because he can, and his relative share in the total tax burden is to be determined by his relative paying capacity.
Nature and Scope of Taxes: Anyanwu (1997) defined taxation as the compulsory transfer or payment (or occasionally of goods and services) from private individuals, institutions or groups to the government. The main purpose of purpose of tax is to raise revenue to meet government expenditure and to redistribute wealth and management of the economy (Ola, 2001; Jhingan, 2004; Bhartia, 2009). According to Nzotta (2007), four key issues must be understood for taxation to play its functions in the society. First, a tax is a compulsory contribution made by the citizens to the government and this contribution is for general common use.
According to Anyanfo (1996), the principles of taxation mean the appropriate criteria to be applied in the development and evaluation of the tax structure. Such principles are essentially an application of some concepts derived from welfare economists. In order to achieve the broader objectives of social justice, the tax system of a country should be based on sound principles. Jhingan (2004), Bhartia (2009) and Osiegbu et al. (2010) listed the principles of taxation as equality, certainty, convenience, economy, simplicity, productivity, flexibility and diversity.
Equity principle: states that every taxpayer should pay the tax in proportion to his income. The rich should pay more and at a higher rate than the other person whose income is less (Jhingan, 2004). Anyanfo (1996) states that it is only when a tax is based on the tax payer’s ability to pay can it be considered equitable or just. Sometimes this principle is interpreted to imply proportional taxation.
Certainty principle: of taxation states that a tax which each individual is bound to pay ought to be certain, and not arbitrary. The time of payment, the manner of payment, the quantity to be paid ought to all be clear and plain to the contributor and every other person (Bhartia, 2009).
Convenience principle: of taxation states that the time and manner should be convenient to the taxpayer. According to Anyanfo (1996), this principle of taxation provides the rationale for Pay - As - You - Earn (PAYE) system of tax payable system of tax collection.
Economy principle: states that every tax should be economical for the state to collect and the taxpayer to pay (Appah, 2004; Jhingan, 2004; Bhartia, 2009). Anyanfo (1996) argues that this principle implies that taxes should not be imposed if their collection exceeds benefits.
Productivity principle: states that a tax should be productive in the sense that it should bring large revenue which should be adequate for the government. This is the major reason why governments in all parts of the globe continuously employ tax reforms.
Simplicity principle: states that the tax should be plain, simple and intelligible to common taxpayer. Anyanfo (1996) argue that there should be no hidden agenda in the tax law.
Flexibility principle: implies that there should be no rigidity in taxation. Diversity Principle of taxation states that there should be different variety of taxes. Bhartia (2009) argue that it is risky for state to depend upon too few a source of public revenue. Empirical Basis of the Studies
Several empirical studies have been conducted on the impact of taxes on economic growth. The empirical studies of Anyanwu (1997), Engen and Skinner (1996), Tosun and Abizadeh (2005) and Arnold (2011) provided different explanations of taxes on economic growth. Engen and Skinner (1996) in their study of taxation and economic growth of U.S. economy, large sample of countries and use of evidence from micro level studies of labour supply, investment demand, and productivity growth. Their result suggests modest effects on the order of 0.2 to 0.3 percentage points’ differences in growth rates in response to a major reform. They stated that such small effects can have a large cumulative impact on living standards. Tosun and Abizadeh (2005) in their study of economic growth of tax changes in OECD countries from 1980 to 1999 reveal that economic growth measured by GDP per capita has a significant effect on the tax mix of GDP per capita. It is shown that while the shares of personal and property taxes have responded positively on economic growth, shares of the payroll and goods and services taxes have shown a relative decline. Arnold (2011) in their study found that short term recovery requires increase in demand while long run growth requires increase in supply. As short term concessions can be hard to reverse, this implies that policies to alleviate this crisis could compromise long run growth.
Types of Taxes
The Organization for Economic Co-operation and Development (OECD) publishes an analysis of tax systems of member countries. As part of such analysis, OECD developed a definition and system of classification of internal taxes,[3] generally followed below. In addition, many countries impose taxes (tariffs) on the import of goods.
Taxes on income
Income tax: Many jurisdictions tax the income of individuals and business entities, including corporations. Generally the tax is imposed on net profits from business, net gains, and other income. Computation of income subject to tax may be determined under accounting principles used in the jurisdiction, which may be modified or replaced by tax law principles in the jurisdiction. The incidence of taxation varies by system, and some systems may be viewed as progressive or regressive. Rates of tax may vary or be constant (flat) by income level. Many systems allow individuals certain personal allowances and other non-business reductions to taxable income. Personal income tax is often collected on a pay-as-you-earn basis, with small corrections made soon after the end of the tax year. These corrections take one of two forms: payments to the government, for taxpayers who have not paid enough during the tax year; and tax refunds from the government for those who have overpaid. Income tax systems will often have deductions available that lessen the total tax liability by reducing total taxable income. They may allow losses from one type of income to be counted against another. For example, a loss on the stock market may be deducted against taxes paid on wages. Other tax systems may isolate the loss, such that business losses can only be deducted against business tax by carrying forward the loss to later tax years.
Capital gains tax. Most jurisdictions imposing an income tax treat capital gains as part of income subject to tax. Capital gain is generally gain on sale of capital assets, i.e., those assets not held for sale in the ordinary course of business. Capital assets include personal assets in many jurisdictions. Some jurisdictions provide preferential rates of tax or only partial taxation for capital gains. Some jurisdictions impose different rates or levels of capital gains taxation based on the length of time the asset was held.
Property tax: A property tax (or millage tax) is an ad valorem tax levy on the value of property that the owner of the property is required to pay to a government in which the property is situated. Multiple jurisdictions may tax the same property. There are three general varieties of property: land, improvements to land (immovable man-made things, e.g. buildings) and personal property (movable things). Real estate or realty is the combination of land and improvements to land. Property taxes are usually charged on a recurrent basis (e.g., yearly). A common type of property tax is an annual charge on the ownership of real estate, where the tax base is the estimated value of the property. For a period of over 150 years from 1695 a window tax was levied in England, with the result that one can still see listed buildings with windows bricked up in order to save their owners money. A similar tax on hearths existed in France and elsewhere, with similar results. The two most common types of event driven property taxes are stamp duty, charged upon change of ownership, and inheritance tax, which is imposed in many countries on the estates of the deceased.
In contrast with a tax on real estate (land and buildings), a Land Value Tax (or LVT) is levied only on the unimproved value of the land ("land" in this instance may mean either the economic term, i.e., all natural resources, or the natural resources associated with specific areas of the Earth 's surface: "lots" or "land parcels"). Proponents of land value tax argue that it is economically justified, as it will not deter production, distort market mechanisms or otherwise create deadweight losses the way other taxes do.[9] When real estate is held by a higher government unit or some other entity not subject to taxation by the local government, the taxing authority may receive a payment in lieu of taxes to compensate it for some or all of the foregone tax revenue. In many jurisdictions (including many American states), there is a general tax levied periodically on residents who own personal property (personality) within the jurisdiction. Vehicle and boat registration fees are subsets of this kind of tax. The tax is often designed with blanket coverage and large exceptions for things like food and clothing. Household goods are often exempt when kept or used within the household.[10] Any otherwise non-exempt object can lose its exemption if regularly kept outside the household.[10] Thus, tax collectors often monitor newspaper articles for stories about wealthy people who have lent art to museums for public display, because the artworks have then become subject to personal property tax.[10] If an artwork had to be sent to another state for some touch-ups, it may have become subject to personal property tax in that state as well.[10]
Inheritance tax: Inheritance tax, estate tax, and death tax or duties are the names given to various taxes which arise on the death of an individual. In United States tax law, there is a distinction between an estate tax and an inheritance tax: the former taxes the personal representatives of the deceased, while the latter taxes the beneficiaries of the estate. However, this distinction does not apply in other jurisdictions; for example, if using this terminology UK inheritance tax would be an estate tax.
Expatriation tax: An Expatriation Tax is a tax on individuals who renounce their citizenship or residence. The tax is often imposed based on a deemed disposition of all the individual 's property. One example is the United States under the American Jobs Creation Act, where any individual who has a net worth of $2 million or an average income-tax liability of $127,000 who renounces his or her citizenship and leaves the country is automatically assumed to have done so for tax avoidance reasons and is subject to a higher tax rate.[11]
Transfer tax: Historically, in many, countries, a contract needed to have a stamp affixed to make it valid. The charge for the stamp was either a fixed amount or a percentage of the value of the transaction. In most countries the stamp has been abolished but stamp duty remains. Stamp duty is levied in the UK on the purchase of shares and securities, the issue of bearer instruments, and certain partnership transactions. Its modern derivatives, stamp duty reserve tax and stamp duty land tax, are respectively charged on transactions involving securities and land. Stamp duty has the effect of discouraging speculative purchases of assets by decreasing liquidity. In the United States, transfer tax is often charged by the state or local government and (in the case of real property transfers) can be tied to the recording of the deed or other transfer documents.
Wealth (net worth) tax: Some countries ' governments will require declaration of the tax payers ' balance sheet (assets and liabilities), and from that exact a tax on net worth (assets minus liabilities), as a percentage of the net worth, or a percentage of the net worth exceeding a certain level. The tax may be levied on "natural" or legal "persons". An example is France 's ISF.
Value added tax (Goods and Services Tax) :A value added tax (VAT), also known as Goods and Services Tax (G.S.T), Single Business Tax, or Turnover Tax in some countries, applies the equivalent of a sales tax to every operation that creates value. To give an example, sheet steel is imported by a machine manufacturer. That manufacturer will pay the VAT on the purchase price, remitting that amount to the government. The manufacturer will then transform the steel into a machine, selling the machine for a higher price to a wholesale distributor. The manufacturer will collect the VAT on the higher price, but will remit to the government only the excess related to the "value added" (the price over the cost of the sheet steel). The wholesale distributor will then continue the process, charging the retail distributor the VAT on the entire price to the retailer, but remitting only the amount related to the distribution mark-up to the government. The last VAT amount is paid by the eventual retail customer who cannot recover any of the previously paid VAT. For a VAT and sales tax of identical rates, the total tax paid is the same, but it is paid at differing points in the process. VAT is usually administrated by requiring the company to complete a VAT return, giving details of VAT it has been charged (referred to as input tax) and VAT it has charged to others (referred to as output tax). The difference between output tax and input tax is payable to the Local Tax Authority. If input tax is greater than output tax the company can claim back money from the Local Tax Authority.
Sales taxes Sales taxes are levied when a commodity is sold to its final consumer. Retail organizations contend that such taxes discourage retail sales. The question of whether they are generally progressive or regressive is a subject of much current debate. People with higher incomes spend a lower proportion of them, so a flat-rate sales tax will tend to be regressive. It is therefore common to exempt food, utilities and other necessities from sales taxes, since poor people spend a higher proportion of their incomes on these commodities, so such exemptions make the tax more progressive. This is the classic "You pay for what you spend" tax, as only those who spend money on non-exempt (i.e. luxury) items pay the tax. A small number of U.S. states rely entirely on sales taxes for state revenue, as those states do not levy a state income tax. Such states tend to have a moderate to large amount of tourism or inter-state travel that occurs within their borders, allowing the state to benefit from taxes from people the state would otherwise not tax. In this way, the state is able to reduce the tax burden on its citizens. The U.S. states that do not levy a state income tax are Alaska, Tennessee, Florida, Nevada, South Dakota, Texas,[12] Washington state, and Wyoming. Additionally, New Hampshire and Tennessee levy state income taxes only on dividends and interest income. Of the above states, only Alaska and New Hampshire do not levy a state sales tax.
Excises: Unlike an ad valorem, an excise is not a function of the value of the product being taxed. Excise taxes are based on the quantity, not the value, of product purchased. For example, in the United States, the Federal government imposes an excise tax of 18.4 cents per U.S. gallon (4.86¢/L) of gasoline, while state governments levy an additional 8 to 28 cents per U.S. gallon. Excises on particular commodities are frequently hypothecated. For example, a fuel excise (use tax) is often used to pay for public transportation, especially roads and bridges and for the protection of the environment. A special form of hypothecation arises where an excise is used to compensate a party to a transaction for alleged uncontrollable abuse; for example, a blank media tax is a tax on recordable media such as CD-Rs, whose proceeds are typically allocated to copyright holders. Critics charge that such taxes blindly tax those who make legitimate and illegitimate usages of the products; for instance, a person or corporation using CD-R 's for data archival should not have to subsidize the producers of popular music. Excises (or exemptions from them) are also used to modify consumption patterns (social engineering). For example, a high excise is used to discourage alcohol consumption, relative to other goods. This may be combined with hypothecation if the proceeds are then used to pay for the costs of treating illness caused by alcohol abuse. Similar taxes may exist on tobacco, pornography, etc., and they may be collectively referred to as "sin taxes". A carbon tax is a tax on the consumption of carbon-based non-renewable fuels, such as petrol, diesel-fuel, jet fuels, and natural gas. The object is to reduce the release of carbon into the atmosphere. In the United Kingdom, vehicle excise duty is an annual tax on vehicle ownership.
Pigovian taxes
Tariff: An import or export tariff (also called customs duty or impost) is a charge for the movement of goods through a political border. Tariffs discourage trade, and they may be used by governments to protect domestic industries. A proportion of tariff revenues are often hypothecated to pay government to maintain a navy or border police. The classic ways of cheating a tariff are smuggling or declaring a false value of goods. Tax, tariff and trade rules in modern times are usually set together because of their common impact on industrial policy, investment policy, and agricultural policy. A trade bloc is a group of allied countries agreeing to minimize or eliminate tariffs against trade with each other, and possibly to impose protective tariffs on imports from outside the bloc. A customs union has a common external tariff, and the participating countries share the revenues from tariffs on goods entering the customs union.
Poll tax: A poll tax, also called a per capita tax, or capitation tax, is a tax that levies a set amount per individual. It is an example of the concept of fixed tax. One of the earliest taxes mentioned in the Bible of a half-shekel per annum from each adult Jew (Ex. 30:11-16) was a form of poll tax. Poll taxes are administratively cheap because they are easy to compute and collect and difficult to cheat. Economists have considered poll taxes economically efficient because people are presumed to be in fixed supply. However, poll taxes are very unpopular because poorer people pay a higher proportion of their income than richer people. In addition, the supply of people is in fact not fixed over time: on average, couples will choose to have fewer children if a poll tax is imposed.[14] The introduction of a poll tax in medieval England was the primary cause of the 1381 Peasants ' Revolt. Scotland was the first to be used to test the new poll tax in 1989 with England and Wales in 1990. The change from a progressive local taxation based on property values to a single-rate form of taxation regardless of ability to pay (the Community Charge, but more popularly referred to as the Poll Tax), led to widespread refusal to pay and to incidents of civil unrest, known colloquially as the 'Poll Tax Riots '.
Ad valorem: An ad valorem tax is one where the tax base is the value of a good, service, or property. Sales taxes, tariffs, property taxes, inheritance taxes, and value added taxes are different types of ad valorem tax. An ad valorem tax is typically imposed at the time of a transaction (sales tax or value added tax (VAT)) but it may be imposed on an annual basis (property tax) or in connection with another significant event (inheritance tax or tariffs). An alternative to ad valorem taxation is an excise tax, where the tax base is the quantity of something, regardless of its price.
Direct tax and Indirect tax: Taxes are sometimes referred to as "direct taxes" or "indirect taxes". The meaning of these terms can vary in different contexts, which can sometimes lead to confusion. An economic definition, by Atkinson, states that "...direct taxes may be adjusted to the individual characteristics of the taxpayer, whereas indirect taxes are levied on transactions irrespective of the circumstances of buyer or seller."[18] According to this definition, for example, income tax is "direct", and sales tax is "indirect". In law, the terms may have different meanings. In U.S. constitutional law, for instance, direct taxes refer to poll taxes and property taxes, which are based on simple existence or ownership. Indirect taxes are imposed on events, rights, privileges, and activities.[19] Thus, a tax on the sale of property would be considered an indirect tax, whereas the tax on simply owning the property itself would be a direct tax.
Fees and effective taxes
Governments may charge user fees, tolls, or other types of assessments in exchange of particular goods, services, or use of property. These are generally not considered taxes, as long as they are levied as payment for a direct benefit to the individual paying.[20] Such fees include: 1. Tolls: a fee charged to travel via a road, bridge, tunnel, canal, waterway or other transportation facilities. Historically tolls have been used to pay for public bridge, road and tunnel projects. They have also been used in privately constructed transport links. The toll is likely to be a fixed charge, possibly graduated for vehicle type, or for distance on long routes. 2. User fees, such as those charged for use of parks or other government owned facilities. 3. Ruling fees charged by governmental agencies to make determinations in particular situations.
Some scholars refer to certain economic effects as taxes, though they are not levies imposed by governments. These include: 1. Inflation tax: the economic disadvantage suffered by holders of cash and cash equivalents in one denomination of currency due to the effects of expansionary monetary policy[21] 2. Financial repression: Government policies such as interest rate caps on government debt, financial regulations such as reserve requirements and capital controls, and barriers to entry in markets where the government owns or controls businesses.[22]
Purposes and effects
Money provided by taxation has been used by states and their functional equivalents throughout history to carry out many functions. Some of these include expenditures on war, the enforcement of law and public order, protection of property, economic infrastructure (roads, legal tender, enforcement of contracts, etc.), public works, social engineering, subsidies, and the operation of government itself. Governments also use taxes to fund welfare and public services. A portion of taxes also go to pay off the state 's debt and the interest this debt accumulates. These services can include education systems, health care systems, pensions for the elderly, unemployment benefits, and public transportation. Energy, water and waste management systems are also common public utilities. Colonial and modernizing states have also used cash taxes to draw or force reluctant subsistence producers into cash economies.
Governments use different kinds of taxes and vary the tax rates. This is done to distribute the tax burden among individuals or classes of the population involved in taxable activities, such as business, or to redistribute resources between individuals or classes in the population. Historically, the nobility were supported by taxes on the poor; modern social security systems are intended to support the poor, the disabled, or the retired by taxes on those who are still working. In addition, taxes are applied to fund foreign aid and military ventures, to influence the macroeconomic performance of the economy (the government 's strategy for doing this is called its fiscal policy; see also tax exemption), or to modify patterns of consumption or employment within an economy, by making some classes of transaction more or less attractive.
A nation 's tax system is often a reflection of its communal values or/and the values of those in power. To create a system of taxation, a nation must make choices regarding the distribution of the tax burden—who will pay taxes and how much they will pay—and how the taxes collected will be spent. In democratic nations where the public elects those in charge of establishing the tax system, these choices reflect the type of community that the public wishes to create. In countries where the public does not have a significant amount of influence over the system of taxation, that system may be more of a reflection on the values of those in power.
All large businesses incur administrative costs in the process of delivering revenue collected from customers to the suppliers of the goods or services being purchased. Taxation is no different; the resource collected from the public through taxation is always greater than the amount which can be used by the government. The difference is called compliance cost, and includes for example the labour cost and other expenses incurred in complying with tax laws and rules. The collection of a tax in order to spend it on a specified purpose, for example collecting a tax on alcohol to pay directly for alcoholism rehabilitation centres, is called hypothecation. This practice is often disliked by finance ministers, since it reduces their freedom of action. Some economic theorists consider the concept to be intellectually dishonest since, in reality, money is fungible. Furthermore, it often happens that taxes or excises initially levied to fund some specific government programs are then later diverted to the government general fund. In some cases, such taxes are collected in fundamentally inefficient ways, for example highway tolls.
Some economists, especially neo-classical economists, argue that all taxation creates market distortion and results in economic inefficiency. They have therefore sought to identify the kind of tax system that would minimize this distortion.
Since governments also resolve commercial disputes, especially in countries with common law, similar arguments are sometimes used to justify a sales tax or value added tax. Others (e.g. libertarians) argue that most or all forms of taxes are immoral due to their involuntary (and therefore eventually coercive/violent) nature. The most extreme anti-tax view is anarcho-capitalism, in which the provision of all social services should be voluntarily bought by the person(s) using them.
Economic effects
In economic terms, taxation transfers wealth from households or businesses to the government of a nation. The side-effects of taxation and theories about how best to tax are an important subject in microeconomics. Taxation is almost never a simple transfer of wealth. Economic theories of taxation approach the question of how to maximize economic welfare through taxation.
Tax incidence
Law establishes from whom a tax is collected. In many countries, taxes are imposed on business (such as corporate taxes or portions of payroll taxes). However, who ultimately pays the tax (the tax "burden") is determined by the marketplace as taxes become embedded into production costs. Economic theory suggests that the economic effect of tax does not necessarily fall at the point where it is legally levied. For instance, a tax on employment paid by employers will impact on the employee, at least in the long run. The greatest share of the tax burden tends to fall on the most inelastic factor involved-the part of the transaction which is affected least by a change in price. So, for instance, a tax on wages in a town will (at least in the long run) affect property-owners in that area.
Depending on how quantities supplied and demanded vary with price (the "elasticities" of supply and demand), a tax can be absorbed by the seller (in the form of lower pre-tax prices), or by the buyer (in the form of higher post-tax prices). If the elasticity of supply is low, more of the tax will be paid by the supplier. If the elasticity of demand is low, more will be paid by the customer; and, contrariwise for the cases where those elasticities are high. If the seller is a competitive firm, the tax burden is distributed over the factors of production depending on the elasticities thereof; this includes workers (in the form of lower wages), capital investors (in the form of loss to shareholders), landowners (in the form of lower rents), entrepreneurs (in the form of lower wages of superintendence) and customers (in the form of higher prices).
To show this relationship, suppose that the market price of a product is $1.00, and that a $0.50 tax is imposed on the product that, by law, is to be collected from the seller. If the product has an elastic demand, a greater portion of the tax will be absorbed by the seller. This is because goods with elastic demand cause a large decline in quantity demanded for a small increase in price. Therefore in order to stabilize sales, the seller absorbs more of the additional tax burden. For example, the seller might drop the price of the product to $0.70 so that, after adding in the tax, the buyer pays a total of $1.20, or $0.20 more than he did before the $0.50 tax was imposed. In this example, the buyer has paid $0.20 of the $0.50 tax (in the form of a post-tax price) and the seller has paid the remaining $0.30 (in the form of a lower pre-tax price)
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter focuses on the methods and procedures used in soliciting information necessary to carry out the study. This chapter is categorized into four main components. These includes: type of research, population, sample and sampling technique and data collection methods and data analysis. The purpose of this study is to assess the causes and effect of teenage pregnancy at Gethsemane Methodist Church
Research design
The research approach was cross-sectional and a case study design was used. In the words of Gravetter (2006) a case study design is the study of a single individual or institution for the purpose of obtaining a description of the individual or institution. The information and data that is included in a case study can be obtained in a variety of ways such as interviews, questionnaire, observation, survey and archival data. The case study was used because it is an empirical enquiry that allows the researcher to investigate and understand the dynamics of the phenomenon being studied. Data for the study was derived from both primary and secondary sources
Population and sampling
According to Fraenkel and Wallen (2003), a population is the group of interest to the researcher. In the same vein Neuman (2007), also added that population is the specific pool of cases that the researcher is interested in studying. According to Gravetter and Forzano (2006) a population is the entire individuals of interest to a researcher. The target population for the study was all workers as well as the management at IRS. Both stratified and systematic sampling methods were used to select the respondents’ to be interviewed. The reason of using these sampling methods is that it offers an opportunity for elements each stratum to be represented in the sample. In all 100 workers were selected for the study. The 1 table below shows the detail composition of the sample.
Table 1 .Summary of Population of Study Strata | Total number | Number selected | Chief Collectors | 50 | 15 | Principal Collectors | 65 | 17 | Senior Collectors | 40 | 10 | Collectors& Assistant Collectors | 157 | 43 | Collecting Assistants | 55 | 15 | Total | 367 | 100 |
Source (Human Resource Department, 2012)
Research Instruments
Questionnaire and personal interview was the instrument used in the data collection process. Questionnaire is a series of relevant question which is usually used to elicit information from the target population of a given study. It provides the researcher with useful data required for analysis, it provides the researcher with useful data required for analysis, and it provides simple, concise and straight forward responses from respondents.
Interview acts as verification tool for the data gathered/generated using questionnaires as well as provide insight into the areas not covered by the questionnaire.
A questionnaire guide with closed and open-ended items was used to obtaining certain types of information needed for the study. The main body of the questionnaire has four sections, arranged according to the variables to be examined. This includes respondents’ demographic information, types of taxes, economic importance of taxes to the citizens, procedures and methods used in tax administration and challenges in tax administration.
Preceding the main items of the questionnaire was an introductory statement explaining the purpose of the study to respondents and also assuring them confidential treatment of their response. The results of the information gathered from various data collected were analyzed and used to draw conclusions of the study.
Data Collection Procedures
The data used in this research are both primary and secondary data. Primary data are the data collected and used for the purpose of which it was collected. Primary data are obtained through the use of questionnaire, oral interview and observation.
Secondary data are data collected through existing information, magazines, handbills, pamphlets, seminar papers, newspapers, published books and journals in the areas of taxation systems
The researcher personally administered the questionnaire to the respondents. This method was used instead of mail system. The respondents used three hours to answer the questionnaire for the researcher to take it back. The researcher was convinced that the authentic data were better collected through this means. The questionnaires were administered when work was in session. Participation was voluntary and confidential
Data Analysis Technique
Data analysis started soon after data collection completed. The analysis was done by the researcher with the help of the two field assistance. Data entry and report writing were done in SPSS version 16, Microsoft word and excel with assistance from an expert. The results were presented in tables and figures.
Ethical considerations
Consent was sought from the management and their departmental heads, as well as study participants. The researcher gave a commitment to all participants relating to anonymity and confidentiality. The interviewees were also offered the opportunity to review the summary of the interviews to be included in the findings of this research.
The researcher facilitated the discussions within the focus group. Whilst anonymity would have been impossible within the group, the researcher gave a commitment not to attribute comments to individuals. Finally, the anonymity of those who took part in semi-structured interviews was assured. Confidentiality was given to all participants in that all data would be used purely to inform this research, which, in turn, would lead to suggested improvements to quality tax administration system through tax institution in Ghana.
Further, participants in the staff focus group were given the opportunity to review the summary of observations and subsequent notes. All participants were advised of the key purpose of this research thus to fulfill an academic research dissertation. They were also formed that findings could be used to improve workers health condition. The study was expected to pose no physical or psychological harm to the study participants
Validity
For a given problem, validity is one of the concepts used to determine how an answer is provided by research (De Vaus, 1991). It means in essence that a theory, model, concept, or category describes reality with a good fit: a valid measure is one which measured what it is intended to measure. In fact it is not the measure that is valid or invalid but the use to which the measure is put. The validity of a measure then depends on how we have defined the concept it is designed to measure (De Vaus, 1991, cited by Amaratunga et al., 2002).
A conscious effort was made to ensure the validity of this project. The interview questions were pre-tested on experienced researchers such as: a local supervisor who has a long period of experience in research and some of colleagues who were also writing their research. The researcher was very objective in several approaches which also aided in its validity. Again the researcher use of both interview and documentation as sources of evidence has increased the validity of the project.
Reliability
Reliability is the extent to which a test or procedure similar results under constant conditions on all occasions (Yin, 1994). The goal of reliability is to minimize the errors and biases in a study.
An interview guide was designed with general questions for the interviewees. This guide was first tested and examined by several people linked and not linked to the research processes to determine its clarity and that the major aspects of interest were being covered. The researcher tried to improve upon the reliability of this study by describing and documenting all the steps and was followed. Fellow-up was made back to these organizations for a review of the data collected when some points needed to clarification.
The methods that will be used are case study, population, sampling technique and size, interviewing, questionnaire, data collection procedure, presentation and analysis.
REFERENCES
Babbie, E. (2005) The Basics of Social Research. 3rd ed, Belmont: Thomson Wadsworth.pp 265,274,279.
Fraenkel, J. R. & Wallen, N. E. (2003). How to Design and Evaluate Research in Education,5th ed, Boston: McGraw Hill. Pp 96-97,118-119.
Gravetter, F.J. &Forzano, L.B.(2006).Research Methods for the Behavioral Sciences 2nd ed,Belmont:Wadsworth.p117 .
Neuman, W.L. (2007) Basics of Social Research: qualitative and quantitative approaches 2nd ed. Boston: Pearson. p146.
. Osuala, E.C. (2005) Introduction to Research Methodology 3rd ed. Onitsha: Africana-First PublishersLtd.p205.
Twumasi, P.A. (2001).Social Research in Rural Communities 2nd ed, Accra: University Press,p29
Literature will be reviewed from related articles, reports, bulletins, journals, textbooks and all publications related to the work. The possible themes or concept that will be dealt with are a. Historical and contemporary perspective of taxation, b. Importance of tax administration, c. Types of taxes and its management, d. Sources of taxes e. Challenges in the use of taxes in the economic development of the nation.
References: Babbie, E. (2005) The Basics of Social Research. 3rd ed, Belmont: Thomson Wadsworth.pp 265,274,279. Fraenkel, J. R. & Wallen, N. E. (2003). How to Design and Evaluate Research in Education,5th ed, Boston: McGraw Hill. Pp 96-97,118-119. Gravetter, F.J. &Forzano, L.B.(2006).Research Methods for the Behavioral Sciences 2nd ed,Belmont:Wadsworth.p117 . Neuman, W.L. (2007) Basics of Social Research: qualitative and quantitative approaches 2nd ed. Boston: Pearson. p146. . Osuala, E.C. (2005) Introduction to Research Methodology 3rd ed. Onitsha: Africana-First PublishersLtd.p205. Twumasi, P.A. (2001).Social Research in Rural Communities 2nd ed, Accra: University Press,p29 Literature will be reviewed from related articles, reports, bulletins, journals, textbooks and all publications related to the work
INTRODUCTION
1.1. Background of the study
Before the introduction of formal taxes the chiefs of the Gold Coast had their own system of taxing the people. For instance in GA it was called “too” Ashanti there were taxes like “assaseto” it was to raise revenue through direct tax so during the assembly of chiefs summoned at Cape Coast in 19th April 1852, the Governor Major Hill passed a Poll Tax Ordinance. The poll tax ordinance imposed tax of one shilling per head on each man, woman and child in the colony. The poll tax was to be collected by officers appointed by the Governor with assistance of the chiefs. This tax was intended for the establishment of schools, markets etc. It is also for the improvement and extension of the judicial system, the provision of greater facilities of internal communication and improvement of medical care. The British government insisted that these developments must be paid for through direct and indirect taxes.
In the beginning of the 20th century the whole land was against direct tax in the Gold Coast. The local resistance to tax was so great that the colonial government had to self-finance in the Gold Coast. Only certain types of local taxes were feasible. Protest and refusal eliminated direct taxes of any nature. This continued to be the case throughout the 1930s. Plan to introduce income tax were shelled because of opposition and nationalist agitation.
In September 1931, Sir Ranford Slater, the then Governor of the Gold Coasts suggested the rate of six pence (6d) in the pound (4) on income in sterling of forty pound (400 and above per annum). This idea met public reaction that was unequivocal, instantaneous and vehement. This made the political atmosphere very explosive hence the idea was abandoned.
On 23rd February 1943, in a speech delivered to the Legislative Council, Governor Sir Burns proposed the introduction of taxation into Gold Coast. Although, not without protest from numerous groups notably from traditional rulers and with support from most newspapers, the proposed bill was presented to the legislative council and passed as Law on 22nd September, 1943, by Sir Allan Burns, the then Governor of Gold Coast. Just before independence and after independence, the government set up city and district councils to help with the collection of taxes and the development of the country. These councils were guided by the tax laws drawn by the Government.
1.2 Statement of the Problem
There is the perception that the collection of taxes in Ghana is not put to recognized use in the lives of the citizens in Ghana. This has made most of the citizens reluctant to pay their taxes in the pursuits of any business transactions. Taxes collected are purposely to be used in the development of every nation of which Ghana is not excluded. However it seems when the taxes are collected by the designated authorities they are not use for the intended purposes for which it was collected. Citizen’s continuously paying taxes without actually feeling and seeing the impact and effect in the economic development of their life is becoming an everlasting challenge in the process of collecting the taxes. It is expected that taxes collected should be utilized in all aspect of the economic life of the individual such as educational, health, sanitation, agriculture, roads among others. It is for this reason that is why the researcher considers it vital to conduct this study to assess the contribution of tax to the economic development of Ghana.
Objectives of the Study
The expected objective of the study is to assess the contribution of tax collection to the economic development of Ghana. However the specific objectives of the project will be as follows. a. To find out the types of taxes paid by the citizens of the state b. To find out how taxes are used in the economic development of the nation c. To identify the methods and procedures of taxes administration d. To identify the challenges associated with the collection of taxes
1.4 Research Questions
The objectives stated above will be achieved through finding answers to the under-listed questions a. What are the types of taxes paid by the citizens? b. How are taxes used in the economic development of the state? c. What are there any methods and procedures for the administration of taxes? d. What are the challenges associated with the collection of taxes?
1.5 Scope of the Study
The work will be limited to the management and staff of the Customs Excise and Preventive Service (CEPS).This will cover chief collectors, principal collectors, senior collectors, collectors, assistant collectors and collecting assistants. The work will also be limited to Ghana Revenue Authority with specific emphasis on Customs Division Headquarters, Accra.
Significance of the Study
Academically the study seeks to contribute to knowledge in the field of taxation administration. It will also contribute to strategic decision making in the area of the management of taxes collected. Additionally the study will assist policy formulators in the formulation of policies concerning the use of taxes for national development being it economical, social, educational, health and sanitation. The work will equally uncover the strategies which can bring increase in productivity in the mobilization and management of taxes. Above all, the study will serve as a reference material in our academic libraries for other students and practitioners of taxation.
Limitations of the Study
The researcher will encounter a lot of problems during the conduct of the study. The problems cannot be over emphasized. The major hurdle will be the unwilling attitude of the respondents to avail themselves for the schedule interview and structured questionnaire especially the management staff of such prestigious organization. Another difficulty that will hamper the progress of the study will be the combination of work and the study which may affect the quality of the study. The time limit will also affect the detail of the work. Notwithstanding all these imaginary problems the researcher is poised to face them in order to complete the project.
Organization of the Study
The research is organized into five chapters. Chapter one talks about the background of the study, objectives, statement of the problem, research questions and significance of the study. Chapter two is the literature review. Chapter three is the methodology which involves the type of research, the population, sample and sampling techniques, type of data, sources of data, instruments for data collection, instrument validity, the procedure for data collection and method of data analysis. Chapter four is where we analysis and discuss the research findings to satisfy the research objectives. Chapter five, the concluding chapter consists of summary, conclusions and recommendations.
CHAPTER TWO
LITERATURE REVIEW
Introduction
Ghana, since independence has depended on taxes for its national development. In view of this successive governments have instituted tax administrative structures to administer the various tax regimes in order to maximize tax revenue for national development. The purpose this studies is to assess the contribution of tax collection to the economic development of Ghana. The structures cover both the formal and informal sectors alike.
The Meaning
A tax (from the Latin taxo; "rate ") is a financial charge or other levy imposed upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many administrative divisions. Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent.
According to Black 's Law Dictionary, a tax is a "pecuniary burden laid upon individuals or property owners to support the government a payment exacted by legislative authority." It "is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority" and is "any contribution imposed by government whether under the name of toll, tribute, tallage, gabel, impost, duty, custom, excise, subsidy, aid, supply, or other name to (Black 's Law Dictionary, 1979)
Theories of Taxation
According to Bhartia (2009), a taxation theory may be derived on the assumption that there need not be any relationship between tax paid and benefits received from state activities. In this group, there are two theories, namely, * Socio-political theory * The expediency theory
Also, a taxation theory may be based on a link between tax liability and state activities. This reasoning justifies the imposition of taxes for financing state activities and also providing a basis for apportioning the tax burden between members of the society. This reasoning yield the benefit received theory and cost of service theory. There is also the faculty theory of taxation.
Socio political theory: This theory of taxation states that social and political objectives should be the major factors in selecting taxes. The theory advocated that a tax system should not be designed to serve individuals, but should be used to cure the ills of society as a whole.
Expediency theory: This theory asserts that every tax proposal must pass the test of practicality. It must be the only consideration weighing with the authorities in choosing a tax proposal. Economic and social objectives of the state as also the effects of a tax system should be treated irrelevant (Bhartia, 2009).
Benefit received theory: This theory proceeds on the assumption that there is basically an exchange relationship between tax-payers and the state. The state provides certain goods and services to the members of the society and they contribute to the cost of these supplies in proportion to the benefits received (Bhartia, 2009). Anyanfo (1996) argues that taxes should be allocated on the basis of benefits received from government expenditure.
Cost of service theory: This theory is similar to the benefits received theory. It emphasizes the semi commercial relationship between the state and the citizens to a greater extent. In this theory, the state is being asked to give up basic protective and welfare functions. It is to scrupulously recover the cost of the services and therefore this theory implies a balanced budget policy.
Faculty theory: According to Anyanfo (1996), this theory states that one should be taxed according to the ability to pay. It is simply an attempt to maximize an explicit value judgment about the distributive effects of taxes. Bhartia (2009) argue that a citizen is to pay taxes just because he can, and his relative share in the total tax burden is to be determined by his relative paying capacity.
Nature and Scope of Taxes: Anyanwu (1997) defined taxation as the compulsory transfer or payment (or occasionally of goods and services) from private individuals, institutions or groups to the government. The main purpose of purpose of tax is to raise revenue to meet government expenditure and to redistribute wealth and management of the economy (Ola, 2001; Jhingan, 2004; Bhartia, 2009). According to Nzotta (2007), four key issues must be understood for taxation to play its functions in the society. First, a tax is a compulsory contribution made by the citizens to the government and this contribution is for general common use.
According to Anyanfo (1996), the principles of taxation mean the appropriate criteria to be applied in the development and evaluation of the tax structure. Such principles are essentially an application of some concepts derived from welfare economists. In order to achieve the broader objectives of social justice, the tax system of a country should be based on sound principles. Jhingan (2004), Bhartia (2009) and Osiegbu et al. (2010) listed the principles of taxation as equality, certainty, convenience, economy, simplicity, productivity, flexibility and diversity.
Equity principle: states that every taxpayer should pay the tax in proportion to his income. The rich should pay more and at a higher rate than the other person whose income is less (Jhingan, 2004). Anyanfo (1996) states that it is only when a tax is based on the tax payer’s ability to pay can it be considered equitable or just. Sometimes this principle is interpreted to imply proportional taxation.
Certainty principle: of taxation states that a tax which each individual is bound to pay ought to be certain, and not arbitrary. The time of payment, the manner of payment, the quantity to be paid ought to all be clear and plain to the contributor and every other person (Bhartia, 2009).
Convenience principle: of taxation states that the time and manner should be convenient to the taxpayer. According to Anyanfo (1996), this principle of taxation provides the rationale for Pay - As - You - Earn (PAYE) system of tax payable system of tax collection.
Economy principle: states that every tax should be economical for the state to collect and the taxpayer to pay (Appah, 2004; Jhingan, 2004; Bhartia, 2009). Anyanfo (1996) argues that this principle implies that taxes should not be imposed if their collection exceeds benefits.
Productivity principle: states that a tax should be productive in the sense that it should bring large revenue which should be adequate for the government. This is the major reason why governments in all parts of the globe continuously employ tax reforms.
Simplicity principle: states that the tax should be plain, simple and intelligible to common taxpayer. Anyanfo (1996) argue that there should be no hidden agenda in the tax law.
Flexibility principle: implies that there should be no rigidity in taxation. Diversity Principle of taxation states that there should be different variety of taxes. Bhartia (2009) argue that it is risky for state to depend upon too few a source of public revenue. Empirical Basis of the Studies
Several empirical studies have been conducted on the impact of taxes on economic growth. The empirical studies of Anyanwu (1997), Engen and Skinner (1996), Tosun and Abizadeh (2005) and Arnold (2011) provided different explanations of taxes on economic growth. Engen and Skinner (1996) in their study of taxation and economic growth of U.S. economy, large sample of countries and use of evidence from micro level studies of labour supply, investment demand, and productivity growth. Their result suggests modest effects on the order of 0.2 to 0.3 percentage points’ differences in growth rates in response to a major reform. They stated that such small effects can have a large cumulative impact on living standards. Tosun and Abizadeh (2005) in their study of economic growth of tax changes in OECD countries from 1980 to 1999 reveal that economic growth measured by GDP per capita has a significant effect on the tax mix of GDP per capita. It is shown that while the shares of personal and property taxes have responded positively on economic growth, shares of the payroll and goods and services taxes have shown a relative decline. Arnold (2011) in their study found that short term recovery requires increase in demand while long run growth requires increase in supply. As short term concessions can be hard to reverse, this implies that policies to alleviate this crisis could compromise long run growth.
Types of Taxes
The Organization for Economic Co-operation and Development (OECD) publishes an analysis of tax systems of member countries. As part of such analysis, OECD developed a definition and system of classification of internal taxes,[3] generally followed below. In addition, many countries impose taxes (tariffs) on the import of goods.
Taxes on income
Income tax: Many jurisdictions tax the income of individuals and business entities, including corporations. Generally the tax is imposed on net profits from business, net gains, and other income. Computation of income subject to tax may be determined under accounting principles used in the jurisdiction, which may be modified or replaced by tax law principles in the jurisdiction. The incidence of taxation varies by system, and some systems may be viewed as progressive or regressive. Rates of tax may vary or be constant (flat) by income level. Many systems allow individuals certain personal allowances and other non-business reductions to taxable income. Personal income tax is often collected on a pay-as-you-earn basis, with small corrections made soon after the end of the tax year. These corrections take one of two forms: payments to the government, for taxpayers who have not paid enough during the tax year; and tax refunds from the government for those who have overpaid. Income tax systems will often have deductions available that lessen the total tax liability by reducing total taxable income. They may allow losses from one type of income to be counted against another. For example, a loss on the stock market may be deducted against taxes paid on wages. Other tax systems may isolate the loss, such that business losses can only be deducted against business tax by carrying forward the loss to later tax years.
Capital gains tax. Most jurisdictions imposing an income tax treat capital gains as part of income subject to tax. Capital gain is generally gain on sale of capital assets, i.e., those assets not held for sale in the ordinary course of business. Capital assets include personal assets in many jurisdictions. Some jurisdictions provide preferential rates of tax or only partial taxation for capital gains. Some jurisdictions impose different rates or levels of capital gains taxation based on the length of time the asset was held.
Property tax: A property tax (or millage tax) is an ad valorem tax levy on the value of property that the owner of the property is required to pay to a government in which the property is situated. Multiple jurisdictions may tax the same property. There are three general varieties of property: land, improvements to land (immovable man-made things, e.g. buildings) and personal property (movable things). Real estate or realty is the combination of land and improvements to land. Property taxes are usually charged on a recurrent basis (e.g., yearly). A common type of property tax is an annual charge on the ownership of real estate, where the tax base is the estimated value of the property. For a period of over 150 years from 1695 a window tax was levied in England, with the result that one can still see listed buildings with windows bricked up in order to save their owners money. A similar tax on hearths existed in France and elsewhere, with similar results. The two most common types of event driven property taxes are stamp duty, charged upon change of ownership, and inheritance tax, which is imposed in many countries on the estates of the deceased.
In contrast with a tax on real estate (land and buildings), a Land Value Tax (or LVT) is levied only on the unimproved value of the land ("land" in this instance may mean either the economic term, i.e., all natural resources, or the natural resources associated with specific areas of the Earth 's surface: "lots" or "land parcels"). Proponents of land value tax argue that it is economically justified, as it will not deter production, distort market mechanisms or otherwise create deadweight losses the way other taxes do.[9] When real estate is held by a higher government unit or some other entity not subject to taxation by the local government, the taxing authority may receive a payment in lieu of taxes to compensate it for some or all of the foregone tax revenue. In many jurisdictions (including many American states), there is a general tax levied periodically on residents who own personal property (personality) within the jurisdiction. Vehicle and boat registration fees are subsets of this kind of tax. The tax is often designed with blanket coverage and large exceptions for things like food and clothing. Household goods are often exempt when kept or used within the household.[10] Any otherwise non-exempt object can lose its exemption if regularly kept outside the household.[10] Thus, tax collectors often monitor newspaper articles for stories about wealthy people who have lent art to museums for public display, because the artworks have then become subject to personal property tax.[10] If an artwork had to be sent to another state for some touch-ups, it may have become subject to personal property tax in that state as well.[10]
Inheritance tax: Inheritance tax, estate tax, and death tax or duties are the names given to various taxes which arise on the death of an individual. In United States tax law, there is a distinction between an estate tax and an inheritance tax: the former taxes the personal representatives of the deceased, while the latter taxes the beneficiaries of the estate. However, this distinction does not apply in other jurisdictions; for example, if using this terminology UK inheritance tax would be an estate tax.
Expatriation tax: An Expatriation Tax is a tax on individuals who renounce their citizenship or residence. The tax is often imposed based on a deemed disposition of all the individual 's property. One example is the United States under the American Jobs Creation Act, where any individual who has a net worth of $2 million or an average income-tax liability of $127,000 who renounces his or her citizenship and leaves the country is automatically assumed to have done so for tax avoidance reasons and is subject to a higher tax rate.[11]
Transfer tax: Historically, in many, countries, a contract needed to have a stamp affixed to make it valid. The charge for the stamp was either a fixed amount or a percentage of the value of the transaction. In most countries the stamp has been abolished but stamp duty remains. Stamp duty is levied in the UK on the purchase of shares and securities, the issue of bearer instruments, and certain partnership transactions. Its modern derivatives, stamp duty reserve tax and stamp duty land tax, are respectively charged on transactions involving securities and land. Stamp duty has the effect of discouraging speculative purchases of assets by decreasing liquidity. In the United States, transfer tax is often charged by the state or local government and (in the case of real property transfers) can be tied to the recording of the deed or other transfer documents.
Wealth (net worth) tax: Some countries ' governments will require declaration of the tax payers ' balance sheet (assets and liabilities), and from that exact a tax on net worth (assets minus liabilities), as a percentage of the net worth, or a percentage of the net worth exceeding a certain level. The tax may be levied on "natural" or legal "persons". An example is France 's ISF.
Value added tax (Goods and Services Tax) :A value added tax (VAT), also known as Goods and Services Tax (G.S.T), Single Business Tax, or Turnover Tax in some countries, applies the equivalent of a sales tax to every operation that creates value. To give an example, sheet steel is imported by a machine manufacturer. That manufacturer will pay the VAT on the purchase price, remitting that amount to the government. The manufacturer will then transform the steel into a machine, selling the machine for a higher price to a wholesale distributor. The manufacturer will collect the VAT on the higher price, but will remit to the government only the excess related to the "value added" (the price over the cost of the sheet steel). The wholesale distributor will then continue the process, charging the retail distributor the VAT on the entire price to the retailer, but remitting only the amount related to the distribution mark-up to the government. The last VAT amount is paid by the eventual retail customer who cannot recover any of the previously paid VAT. For a VAT and sales tax of identical rates, the total tax paid is the same, but it is paid at differing points in the process. VAT is usually administrated by requiring the company to complete a VAT return, giving details of VAT it has been charged (referred to as input tax) and VAT it has charged to others (referred to as output tax). The difference between output tax and input tax is payable to the Local Tax Authority. If input tax is greater than output tax the company can claim back money from the Local Tax Authority.
Sales taxes Sales taxes are levied when a commodity is sold to its final consumer. Retail organizations contend that such taxes discourage retail sales. The question of whether they are generally progressive or regressive is a subject of much current debate. People with higher incomes spend a lower proportion of them, so a flat-rate sales tax will tend to be regressive. It is therefore common to exempt food, utilities and other necessities from sales taxes, since poor people spend a higher proportion of their incomes on these commodities, so such exemptions make the tax more progressive. This is the classic "You pay for what you spend" tax, as only those who spend money on non-exempt (i.e. luxury) items pay the tax. A small number of U.S. states rely entirely on sales taxes for state revenue, as those states do not levy a state income tax. Such states tend to have a moderate to large amount of tourism or inter-state travel that occurs within their borders, allowing the state to benefit from taxes from people the state would otherwise not tax. In this way, the state is able to reduce the tax burden on its citizens. The U.S. states that do not levy a state income tax are Alaska, Tennessee, Florida, Nevada, South Dakota, Texas,[12] Washington state, and Wyoming. Additionally, New Hampshire and Tennessee levy state income taxes only on dividends and interest income. Of the above states, only Alaska and New Hampshire do not levy a state sales tax.
Excises: Unlike an ad valorem, an excise is not a function of the value of the product being taxed. Excise taxes are based on the quantity, not the value, of product purchased. For example, in the United States, the Federal government imposes an excise tax of 18.4 cents per U.S. gallon (4.86¢/L) of gasoline, while state governments levy an additional 8 to 28 cents per U.S. gallon. Excises on particular commodities are frequently hypothecated. For example, a fuel excise (use tax) is often used to pay for public transportation, especially roads and bridges and for the protection of the environment. A special form of hypothecation arises where an excise is used to compensate a party to a transaction for alleged uncontrollable abuse; for example, a blank media tax is a tax on recordable media such as CD-Rs, whose proceeds are typically allocated to copyright holders. Critics charge that such taxes blindly tax those who make legitimate and illegitimate usages of the products; for instance, a person or corporation using CD-R 's for data archival should not have to subsidize the producers of popular music. Excises (or exemptions from them) are also used to modify consumption patterns (social engineering). For example, a high excise is used to discourage alcohol consumption, relative to other goods. This may be combined with hypothecation if the proceeds are then used to pay for the costs of treating illness caused by alcohol abuse. Similar taxes may exist on tobacco, pornography, etc., and they may be collectively referred to as "sin taxes". A carbon tax is a tax on the consumption of carbon-based non-renewable fuels, such as petrol, diesel-fuel, jet fuels, and natural gas. The object is to reduce the release of carbon into the atmosphere. In the United Kingdom, vehicle excise duty is an annual tax on vehicle ownership.
Pigovian taxes
Tariff: An import or export tariff (also called customs duty or impost) is a charge for the movement of goods through a political border. Tariffs discourage trade, and they may be used by governments to protect domestic industries. A proportion of tariff revenues are often hypothecated to pay government to maintain a navy or border police. The classic ways of cheating a tariff are smuggling or declaring a false value of goods. Tax, tariff and trade rules in modern times are usually set together because of their common impact on industrial policy, investment policy, and agricultural policy. A trade bloc is a group of allied countries agreeing to minimize or eliminate tariffs against trade with each other, and possibly to impose protective tariffs on imports from outside the bloc. A customs union has a common external tariff, and the participating countries share the revenues from tariffs on goods entering the customs union.
Poll tax: A poll tax, also called a per capita tax, or capitation tax, is a tax that levies a set amount per individual. It is an example of the concept of fixed tax. One of the earliest taxes mentioned in the Bible of a half-shekel per annum from each adult Jew (Ex. 30:11-16) was a form of poll tax. Poll taxes are administratively cheap because they are easy to compute and collect and difficult to cheat. Economists have considered poll taxes economically efficient because people are presumed to be in fixed supply. However, poll taxes are very unpopular because poorer people pay a higher proportion of their income than richer people. In addition, the supply of people is in fact not fixed over time: on average, couples will choose to have fewer children if a poll tax is imposed.[14] The introduction of a poll tax in medieval England was the primary cause of the 1381 Peasants ' Revolt. Scotland was the first to be used to test the new poll tax in 1989 with England and Wales in 1990. The change from a progressive local taxation based on property values to a single-rate form of taxation regardless of ability to pay (the Community Charge, but more popularly referred to as the Poll Tax), led to widespread refusal to pay and to incidents of civil unrest, known colloquially as the 'Poll Tax Riots '.
Ad valorem: An ad valorem tax is one where the tax base is the value of a good, service, or property. Sales taxes, tariffs, property taxes, inheritance taxes, and value added taxes are different types of ad valorem tax. An ad valorem tax is typically imposed at the time of a transaction (sales tax or value added tax (VAT)) but it may be imposed on an annual basis (property tax) or in connection with another significant event (inheritance tax or tariffs). An alternative to ad valorem taxation is an excise tax, where the tax base is the quantity of something, regardless of its price.
Direct tax and Indirect tax: Taxes are sometimes referred to as "direct taxes" or "indirect taxes". The meaning of these terms can vary in different contexts, which can sometimes lead to confusion. An economic definition, by Atkinson, states that "...direct taxes may be adjusted to the individual characteristics of the taxpayer, whereas indirect taxes are levied on transactions irrespective of the circumstances of buyer or seller."[18] According to this definition, for example, income tax is "direct", and sales tax is "indirect". In law, the terms may have different meanings. In U.S. constitutional law, for instance, direct taxes refer to poll taxes and property taxes, which are based on simple existence or ownership. Indirect taxes are imposed on events, rights, privileges, and activities.[19] Thus, a tax on the sale of property would be considered an indirect tax, whereas the tax on simply owning the property itself would be a direct tax.
Fees and effective taxes
Governments may charge user fees, tolls, or other types of assessments in exchange of particular goods, services, or use of property. These are generally not considered taxes, as long as they are levied as payment for a direct benefit to the individual paying.[20] Such fees include: 1. Tolls: a fee charged to travel via a road, bridge, tunnel, canal, waterway or other transportation facilities. Historically tolls have been used to pay for public bridge, road and tunnel projects. They have also been used in privately constructed transport links. The toll is likely to be a fixed charge, possibly graduated for vehicle type, or for distance on long routes. 2. User fees, such as those charged for use of parks or other government owned facilities. 3. Ruling fees charged by governmental agencies to make determinations in particular situations.
Some scholars refer to certain economic effects as taxes, though they are not levies imposed by governments. These include: 1. Inflation tax: the economic disadvantage suffered by holders of cash and cash equivalents in one denomination of currency due to the effects of expansionary monetary policy[21] 2. Financial repression: Government policies such as interest rate caps on government debt, financial regulations such as reserve requirements and capital controls, and barriers to entry in markets where the government owns or controls businesses.[22]
Purposes and effects
Money provided by taxation has been used by states and their functional equivalents throughout history to carry out many functions. Some of these include expenditures on war, the enforcement of law and public order, protection of property, economic infrastructure (roads, legal tender, enforcement of contracts, etc.), public works, social engineering, subsidies, and the operation of government itself. Governments also use taxes to fund welfare and public services. A portion of taxes also go to pay off the state 's debt and the interest this debt accumulates. These services can include education systems, health care systems, pensions for the elderly, unemployment benefits, and public transportation. Energy, water and waste management systems are also common public utilities. Colonial and modernizing states have also used cash taxes to draw or force reluctant subsistence producers into cash economies.
Governments use different kinds of taxes and vary the tax rates. This is done to distribute the tax burden among individuals or classes of the population involved in taxable activities, such as business, or to redistribute resources between individuals or classes in the population. Historically, the nobility were supported by taxes on the poor; modern social security systems are intended to support the poor, the disabled, or the retired by taxes on those who are still working. In addition, taxes are applied to fund foreign aid and military ventures, to influence the macroeconomic performance of the economy (the government 's strategy for doing this is called its fiscal policy; see also tax exemption), or to modify patterns of consumption or employment within an economy, by making some classes of transaction more or less attractive.
A nation 's tax system is often a reflection of its communal values or/and the values of those in power. To create a system of taxation, a nation must make choices regarding the distribution of the tax burden—who will pay taxes and how much they will pay—and how the taxes collected will be spent. In democratic nations where the public elects those in charge of establishing the tax system, these choices reflect the type of community that the public wishes to create. In countries where the public does not have a significant amount of influence over the system of taxation, that system may be more of a reflection on the values of those in power.
All large businesses incur administrative costs in the process of delivering revenue collected from customers to the suppliers of the goods or services being purchased. Taxation is no different; the resource collected from the public through taxation is always greater than the amount which can be used by the government. The difference is called compliance cost, and includes for example the labour cost and other expenses incurred in complying with tax laws and rules. The collection of a tax in order to spend it on a specified purpose, for example collecting a tax on alcohol to pay directly for alcoholism rehabilitation centres, is called hypothecation. This practice is often disliked by finance ministers, since it reduces their freedom of action. Some economic theorists consider the concept to be intellectually dishonest since, in reality, money is fungible. Furthermore, it often happens that taxes or excises initially levied to fund some specific government programs are then later diverted to the government general fund. In some cases, such taxes are collected in fundamentally inefficient ways, for example highway tolls.
Some economists, especially neo-classical economists, argue that all taxation creates market distortion and results in economic inefficiency. They have therefore sought to identify the kind of tax system that would minimize this distortion.
Since governments also resolve commercial disputes, especially in countries with common law, similar arguments are sometimes used to justify a sales tax or value added tax. Others (e.g. libertarians) argue that most or all forms of taxes are immoral due to their involuntary (and therefore eventually coercive/violent) nature. The most extreme anti-tax view is anarcho-capitalism, in which the provision of all social services should be voluntarily bought by the person(s) using them.
Economic effects
In economic terms, taxation transfers wealth from households or businesses to the government of a nation. The side-effects of taxation and theories about how best to tax are an important subject in microeconomics. Taxation is almost never a simple transfer of wealth. Economic theories of taxation approach the question of how to maximize economic welfare through taxation.
Tax incidence
Law establishes from whom a tax is collected. In many countries, taxes are imposed on business (such as corporate taxes or portions of payroll taxes). However, who ultimately pays the tax (the tax "burden") is determined by the marketplace as taxes become embedded into production costs. Economic theory suggests that the economic effect of tax does not necessarily fall at the point where it is legally levied. For instance, a tax on employment paid by employers will impact on the employee, at least in the long run. The greatest share of the tax burden tends to fall on the most inelastic factor involved-the part of the transaction which is affected least by a change in price. So, for instance, a tax on wages in a town will (at least in the long run) affect property-owners in that area.
Depending on how quantities supplied and demanded vary with price (the "elasticities" of supply and demand), a tax can be absorbed by the seller (in the form of lower pre-tax prices), or by the buyer (in the form of higher post-tax prices). If the elasticity of supply is low, more of the tax will be paid by the supplier. If the elasticity of demand is low, more will be paid by the customer; and, contrariwise for the cases where those elasticities are high. If the seller is a competitive firm, the tax burden is distributed over the factors of production depending on the elasticities thereof; this includes workers (in the form of lower wages), capital investors (in the form of loss to shareholders), landowners (in the form of lower rents), entrepreneurs (in the form of lower wages of superintendence) and customers (in the form of higher prices).
To show this relationship, suppose that the market price of a product is $1.00, and that a $0.50 tax is imposed on the product that, by law, is to be collected from the seller. If the product has an elastic demand, a greater portion of the tax will be absorbed by the seller. This is because goods with elastic demand cause a large decline in quantity demanded for a small increase in price. Therefore in order to stabilize sales, the seller absorbs more of the additional tax burden. For example, the seller might drop the price of the product to $0.70 so that, after adding in the tax, the buyer pays a total of $1.20, or $0.20 more than he did before the $0.50 tax was imposed. In this example, the buyer has paid $0.20 of the $0.50 tax (in the form of a post-tax price) and the seller has paid the remaining $0.30 (in the form of a lower pre-tax price)
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter focuses on the methods and procedures used in soliciting information necessary to carry out the study. This chapter is categorized into four main components. These includes: type of research, population, sample and sampling technique and data collection methods and data analysis. The purpose of this study is to assess the causes and effect of teenage pregnancy at Gethsemane Methodist Church
Research design
The research approach was cross-sectional and a case study design was used. In the words of Gravetter (2006) a case study design is the study of a single individual or institution for the purpose of obtaining a description of the individual or institution. The information and data that is included in a case study can be obtained in a variety of ways such as interviews, questionnaire, observation, survey and archival data. The case study was used because it is an empirical enquiry that allows the researcher to investigate and understand the dynamics of the phenomenon being studied. Data for the study was derived from both primary and secondary sources
Population and sampling
According to Fraenkel and Wallen (2003), a population is the group of interest to the researcher. In the same vein Neuman (2007), also added that population is the specific pool of cases that the researcher is interested in studying. According to Gravetter and Forzano (2006) a population is the entire individuals of interest to a researcher. The target population for the study was all workers as well as the management at IRS. Both stratified and systematic sampling methods were used to select the respondents’ to be interviewed. The reason of using these sampling methods is that it offers an opportunity for elements each stratum to be represented in the sample. In all 100 workers were selected for the study. The 1 table below shows the detail composition of the sample.
Table 1 .Summary of Population of Study Strata | Total number | Number selected | Chief Collectors | 50 | 15 | Principal Collectors | 65 | 17 | Senior Collectors | 40 | 10 | Collectors& Assistant Collectors | 157 | 43 | Collecting Assistants | 55 | 15 | Total | 367 | 100 |
Source (Human Resource Department, 2012)
Research Instruments
Questionnaire and personal interview was the instrument used in the data collection process. Questionnaire is a series of relevant question which is usually used to elicit information from the target population of a given study. It provides the researcher with useful data required for analysis, it provides the researcher with useful data required for analysis, and it provides simple, concise and straight forward responses from respondents.
Interview acts as verification tool for the data gathered/generated using questionnaires as well as provide insight into the areas not covered by the questionnaire.
A questionnaire guide with closed and open-ended items was used to obtaining certain types of information needed for the study. The main body of the questionnaire has four sections, arranged according to the variables to be examined. This includes respondents’ demographic information, types of taxes, economic importance of taxes to the citizens, procedures and methods used in tax administration and challenges in tax administration.
Preceding the main items of the questionnaire was an introductory statement explaining the purpose of the study to respondents and also assuring them confidential treatment of their response. The results of the information gathered from various data collected were analyzed and used to draw conclusions of the study.
Data Collection Procedures
The data used in this research are both primary and secondary data. Primary data are the data collected and used for the purpose of which it was collected. Primary data are obtained through the use of questionnaire, oral interview and observation.
Secondary data are data collected through existing information, magazines, handbills, pamphlets, seminar papers, newspapers, published books and journals in the areas of taxation systems
The researcher personally administered the questionnaire to the respondents. This method was used instead of mail system. The respondents used three hours to answer the questionnaire for the researcher to take it back. The researcher was convinced that the authentic data were better collected through this means. The questionnaires were administered when work was in session. Participation was voluntary and confidential
Data Analysis Technique
Data analysis started soon after data collection completed. The analysis was done by the researcher with the help of the two field assistance. Data entry and report writing were done in SPSS version 16, Microsoft word and excel with assistance from an expert. The results were presented in tables and figures.
Ethical considerations
Consent was sought from the management and their departmental heads, as well as study participants. The researcher gave a commitment to all participants relating to anonymity and confidentiality. The interviewees were also offered the opportunity to review the summary of the interviews to be included in the findings of this research.
The researcher facilitated the discussions within the focus group. Whilst anonymity would have been impossible within the group, the researcher gave a commitment not to attribute comments to individuals. Finally, the anonymity of those who took part in semi-structured interviews was assured. Confidentiality was given to all participants in that all data would be used purely to inform this research, which, in turn, would lead to suggested improvements to quality tax administration system through tax institution in Ghana.
Further, participants in the staff focus group were given the opportunity to review the summary of observations and subsequent notes. All participants were advised of the key purpose of this research thus to fulfill an academic research dissertation. They were also formed that findings could be used to improve workers health condition. The study was expected to pose no physical or psychological harm to the study participants
Validity
For a given problem, validity is one of the concepts used to determine how an answer is provided by research (De Vaus, 1991). It means in essence that a theory, model, concept, or category describes reality with a good fit: a valid measure is one which measured what it is intended to measure. In fact it is not the measure that is valid or invalid but the use to which the measure is put. The validity of a measure then depends on how we have defined the concept it is designed to measure (De Vaus, 1991, cited by Amaratunga et al., 2002).
A conscious effort was made to ensure the validity of this project. The interview questions were pre-tested on experienced researchers such as: a local supervisor who has a long period of experience in research and some of colleagues who were also writing their research. The researcher was very objective in several approaches which also aided in its validity. Again the researcher use of both interview and documentation as sources of evidence has increased the validity of the project.
Reliability
Reliability is the extent to which a test or procedure similar results under constant conditions on all occasions (Yin, 1994). The goal of reliability is to minimize the errors and biases in a study.
An interview guide was designed with general questions for the interviewees. This guide was first tested and examined by several people linked and not linked to the research processes to determine its clarity and that the major aspects of interest were being covered. The researcher tried to improve upon the reliability of this study by describing and documenting all the steps and was followed. Fellow-up was made back to these organizations for a review of the data collected when some points needed to clarification.
The methods that will be used are case study, population, sampling technique and size, interviewing, questionnaire, data collection procedure, presentation and analysis.
REFERENCES
Babbie, E. (2005) The Basics of Social Research. 3rd ed, Belmont: Thomson Wadsworth.pp 265,274,279.
Fraenkel, J. R. & Wallen, N. E. (2003). How to Design and Evaluate Research in Education,5th ed, Boston: McGraw Hill. Pp 96-97,118-119.
Gravetter, F.J. &Forzano, L.B.(2006).Research Methods for the Behavioral Sciences 2nd ed,Belmont:Wadsworth.p117 .
Neuman, W.L. (2007) Basics of Social Research: qualitative and quantitative approaches 2nd ed. Boston: Pearson. p146.
. Osuala, E.C. (2005) Introduction to Research Methodology 3rd ed. Onitsha: Africana-First PublishersLtd.p205.
Twumasi, P.A. (2001).Social Research in Rural Communities 2nd ed, Accra: University Press,p29
Literature will be reviewed from related articles, reports, bulletins, journals, textbooks and all publications related to the work. The possible themes or concept that will be dealt with are a. Historical and contemporary perspective of taxation, b. Importance of tax administration, c. Types of taxes and its management, d. Sources of taxes e. Challenges in the use of taxes in the economic development of the nation.
References: Babbie, E. (2005) The Basics of Social Research. 3rd ed, Belmont: Thomson Wadsworth.pp 265,274,279. Fraenkel, J. R. & Wallen, N. E. (2003). How to Design and Evaluate Research in Education,5th ed, Boston: McGraw Hill. Pp 96-97,118-119. Gravetter, F.J. &Forzano, L.B.(2006).Research Methods for the Behavioral Sciences 2nd ed,Belmont:Wadsworth.p117 . Neuman, W.L. (2007) Basics of Social Research: qualitative and quantitative approaches 2nd ed. Boston: Pearson. p146. . Osuala, E.C. (2005) Introduction to Research Methodology 3rd ed. Onitsha: Africana-First PublishersLtd.p205. Twumasi, P.A. (2001).Social Research in Rural Communities 2nd ed, Accra: University Press,p29 Literature will be reviewed from related articles, reports, bulletins, journals, textbooks and all publications related to the work
You May Also Find These Documents Helpful
-
Many colonies held protests against these taxes (Doc. G), and one colonist, Thomas Paine, published a pamphlet titled Common Sense which “urged Americans to declare independence from Great Britain” (Doc. C). This “paved the way for the Declaration of Independence” (Doc. C). Moreover, there were inter-colonial organizations that coordinated these protests and much more. For example, the Sons of Liberty were very influential in colonial resistance. They “plac[ed] themselves between the colonial leadership and the mob” (Doc. B), the mob being the enraged colonists in the streets. As a result of this resistance, Great Britain was forced to take action, not only in the colonies but in parliament as…
- 544 Words
- 3 Pages
Good Essays -
The Townshend Acts. The British government still needed money from the colonist. Because the colonists were upset of the stamp act, they sent Benjamin Franklin to plead their case. He told Parliament that the colonists opposed it because it was an internal but would accept external tax.…
- 334 Words
- 2 Pages
Good Essays -
Document 2: According to Dickinson, what taxes was Parliament justified in imposing on the colonies?…
- 527 Words
- 3 Pages
Satisfactory Essays -
Soon after the war the British began to strictly regulate trade and began to enact taxes such as the Stamp Act. This angered many of the colonists and they began to protest against ‘taxation without representation’.…
- 669 Words
- 3 Pages
Good Essays -
King George III and the British accumulated a massive debt after the French and Indian war. British assets were depleting at an exponential rate, so Parliament decided to tax the colonists in order to offset their expenses from the war. By reducing the debt from the seven-year war King George’s could reign over the colonies for many years to come. Evidently taxing anyone who was neglected during the seven years’ war was the ultimate plan of alleviating the debt. British could keep stacking riches to their empire thus strengthening it more. Taxation came in many forms, the first was the Sugar Act (1764), the Stamp Act (1765) and the Townshend Duties (1767). Consequently, Colonists in the 13 states suffered higher expenditures, even imported…
- 789 Words
- 4 Pages
Good Essays -
perceived to be an unreasonable tax, so they began to show that they supported the…
- 308 Words
- 1 Page
Satisfactory Essays -
5. Describe the methods of colonial resistance that forced repeal of all taxes except the tax on tea.…
- 396 Words
- 2 Pages
Satisfactory Essays -
Hunt, Elgin f., and Colander, David C., Social Science: An Introduction to the Study of Society, 3rd edition, copyright 2008, Person publishing company.…
- 2015 Words
- 9 Pages
Powerful Essays -
Parliament passed the Currency Act of 1764 which forbade the colonies from issuing paper currency; which made it more difficult for colonists to pay their debt. Right after the Currency Act was passed the Stamped Acts was passed and colonists had to pay for stamps to send legal documents and other goods. Many colonists quickly protested these taxes arguing that they represented an internal tax, or a tax against property, which they deemed unconstitutional because they were not represented in Parliament. Also the Sugar Act was passed which required you to pay a tax of six pence per gallon on the importation of foreign molasses. These colonists believed constitutionally that Parliament could legislate these external taxes because they did not directly tax their property but could not legislate internal taxes.…
- 569 Words
- 3 Pages
Good Essays -
1. What taxes were placed on the Colonists? Do you think the British had the right to tax the…
- 439 Words
- 6 Pages
Satisfactory Essays -
Evaluate the relative importance of two of the following as factors prompting Americans to rebel in 1776.…
- 1323 Words
- 6 Pages
Good Essays -
* The British decided that after defending the colonies, it was time for them to start paying for it. They assessed taxes on the colonies without having American representatives.…
- 551 Words
- 3 Pages
Satisfactory Essays -
king considered ways to obtain the funds to pay for it. He chose taxing the colonies. After…
- 1021 Words
- 5 Pages
Good Essays -
Describe the first major new British taxes on the colonies and how colonial resistance forced repeal of all taxes, except the tax on tea, by 1770.…
- 3648 Words
- 15 Pages
Powerful Essays -
The first grievance which had a wonton impact on the colonist was inculcated under the vindictive rule of King George III, which are the abhorrent laws implemented to taxes, this salient issue is addressed in the declaration of independence in the statement “For imposing Taxes on us without our Consent”. The taxes inflicted on the colonies which are responsible for the rampant acerbity gripping the colonist included the navigation acts which were applied to maintain the triangular trade, the sugar act passed by the British parliament, which designated taxes to sugar…
- 729 Words
- 3 Pages
Good Essays