Impactos de la migración

136 According to Table 28, 28% agree and 50% strongly agree, making it 78% of the respondents who indicated that properties are not inspected individually for tax assessment.

This shows that inspection and assessment are not carried out on all the chargeable properties. 67% and 11% of the respondents agree and strongly agree that the depreciated replacement cost method of valuation is used for the assessment of all the chargeable properties in the State. 77% of the respondents agree that focal properties are used to determine the assessed value of chargeable properties in the State. 72% of the respondents also agree that there are properties named “orphans” which are properties that have no similar features with the focal properties. This analysis shows that there are some irregularities in the tax assessment process of the Global Mckens Company.

4.9 Research Question 4: The extent of Success recorded by APLUC based on its

137 Table 29 shows that the success rate of APLUC is 3.7 approximately 4%. The expected mean revenue in twenty years time will be six billion naira. N6, 000,000,000.00 (N1, 500,000,000.00 x 4). Therefore if the Government should continue with APLUC, in 20 years time (2035), its mean realized revenue will be two hundred and nineteen million, nine hundred and sixty one thousand, one hundred and sixty five naira, and one hundred and twenty five kobo. N219, 961,165.125 (N54,990,291.2815 × 4). This analysis clearly shows that in twenty years time, the tax system will only be able to make 3.7% of the expected 20-year mean target. Therefore, the success recorded by APLUC is to a very low extent.

4.10: Research Question five: The extent APLUC satisfies the Elements of a Good Tax Administration.

Kelly (1994), stated that the elements of tax administration namely property identification, assessment, collection, enforcement and appeals must be linked together and their performance determines the success of the tax system. The responses relevant to the inquiry posed are therefore analysed in tables as shown:

Table 30: Tax Administrators’ (GLOBAL MCKENS) Percentage and Mean Ratings of APLUC’s satisfaction of elements of a Good Tax Administration.

Elements of Tax Administration

SD D UN A SA Mean

N % N % N % N % N %

Property Identification 1. Database covers all landed properties in Anambra State

8 44% 6 33% 4 22% 0 0% 0 0% 1.78

2. Database has

property owners' details and property attributes

9 50% 7 39% 2 11% 0 0% 0 0% 1.61

3. Database updated annually to effect current changes in

3 17% 5 28% 5 28% 5 28% 0 0% 2.67

138 property uses

4. There is synergy between Ministry of Lands and Agency on property transactions

8 44% 7 39% 3 17% 0 0% 0 0% 1.72

5. The database is open for public inspection

11 61% 7 39% 0 0% 0 0% 0 0% 1.39

Mean Property Identification

1.83

Tax Collection

10. Tax demand notices are delivered to every taxable property annually

0 0% 0 0% 0 0% 9 50% 9 50% 4.50

11. Reminders are also delivered to every taxable properties annually

1 6% 13 72% 4 22% 0 0% 0 0% 2.17

12. The property owners pay the taxes promptly at the due dates

5 28% 9 50% 3 17% 1 6% 0 0% 2.00

Mean Tax Collection Tax Enforcement

2.89

13. The government keeps track of non-compliant property owners

0 0% 0 0% 0 0% 9 50% 9 50% 4.50

14. The property owners pay the tax willingly

6 33% 7 39% 1 6% 4 22% 0 0% 2.17

15. The judicial machinery for

prosecuting offenders is effective

2 11% 1 6% 1 6% 10 56% 4 22% 3.72

16. The enforcement strategies like sealing of properties of tax offenders has increased compliance

0 0% 3 17% 5 28% 9 50% 1 6% 3.44

139 17. Tax enforcement is

mostly carried out on commercial properties like Hotels, Schools and Office buildings

0 0% 0 0% 0 0% 11 61% 7 39% 4.39

Mean Tax Enforcement

3.64

Tax Assessment Appeal

18. There is a functional tax assessment appeal tribunal for taxpayers to register their grievances

3 17% 10 56% 5 28% 0 0% 0 0% 2.11

19. The tribunal has a venue and time for sitting

10 56% 8 44% 0 0% 0 0% 0 0% 1.44

20. Relevant professionals like Estate Surveyors and Valuers and Lawyers are members of the appeal tribunal

5 28% 9 50% 4 22% 0 0% 0 0% 1.94

Mean Tax Assessment Appeal

1.83

Grand Mean 2.74

Table 30 shows the analysis of the tax administrators‟ responses to the questions on the elements or components of a good tax administration. On whether the property database used by the tax administrators covers all properties in the State, 77% of the respondents disagree. 89% of the respondents also disagree that the database has property owner‟s details and property attributes. 83% disagree that a synergy exists between the Ministry of Lands and the agency to help the agency track property transactions. 100% of the respondents disagree that the database is open for public inspection. This shows that the agency has not achieved much in the area of property identification. 100% of the respondents agree that tax demand notices are delivered to every chargeable property annually but 78% indicated that

140 reminders are not delivered annually to all chargeable properties. 88% disagree that property owners pay their taxes at due dates. This shows that the agency makes effort to deliver the demand notices but do not remind or encourage the property owners to pay. In the area of tax enforcement, 100% of the respondents affirm that the agency keeps proper track of non compliant property owners. 69% disagree that property owners pay the tax willingly while 78% agree that the judicial machinery for prosecuting offenders is effective. 56% agree that sealing of properties of tax offenders has increased compliance while 100% of the respondents agree that enforcement is mostly carried out on commercial properties. 73% of the respondents disagree that a functional tax appeal tribunal is available for taxpayers. 100%

indicate that the tribunal has neither no sitting venue nor time. 78% disagree that the tribunal has relevant professionals as members. The mean ratings on the various components of property tax administration, namely property identification, tax collection, tax enforcement, and tax assessment appeal are 1.83, 2.89, 3.64 and 1.83 and a grand mean of 2.74. This shows that to a low extent, proper property identification and tax assessment appeal are done, tax collection is achieved to a moderate extent but tax enforcement is achieved on a high extent although only on commercial properties. The grand mean of 2.74 shows that APLUC is properly administered to a moderate extent.

The tax payers also expressed their views on the administration of APLUC on table 31.

Table 31: Tax Payers' Percentage and Mean Ratings of APLUC's Satisfaction of Good Tax Administration

Elements of Tax

Administration

SD D UND A SA Mean

N % N % N % N % N %

Tax Collection 1. Demand notices and reminders are served yearly

12 3% 98 27% 26 7% 213 59% 9 3% 2.77

141

on property 2. Taxpayers are reminded and encouraged to pay tax after getting demand notices

50 14% 119 33% 54 15% 132 37% 3 1% 2.46

3. Property owners pay the tax willingly

38 11% 186 52% 70 20% 60 17% 4 1% 3.34

4. Property owners do not encounter problems making payments at designated banks

0 0% 57 16% 16 4% 232 65% 53 15% 3.78

Mean Tax Collection

3.09 Tax

Enforcement 5. Taxpayers are aware of tax penalties and sanctions

10 3% 80 22% 64 18% 186 52% 18 5% 3.34

6. Penalties for late payment have made taxpayers pay the tax promptly

8 2% 87 24% 91 25% 147 41% 25 7% 3.26

7. Sealing of property for non- payment have made taxpayers to pay promptly

19 5% 88 25% 81 23% 155 43% 15 4% 3.16

8. The

government has been sealing up lots of

properties lately

74 21% 160 45% 84 23% 35 10% 5 1% 2.27

142

for non-payment of APLUC

Mean Tax Enforcement

3.00

Tax Assessment Appeal 9. Taxpayers are aware of right to appeal if not satisfied with tax amount

148 41% 89 25% 1 2% 2 1% 83 23% 2.99

10. Taxpayers not satisfied with tax value, object at the panel set up by the government

74 21% 160 45% 84 23% 35 10% 5 1% 2.27

11. Aggrieved taxpayers have confidence in the tax appeal system

57 16% 197 55% 69 19% 35 10% 0 0% 2.23

12. Aggrieved taxpayers have confidence in the tax appeal system

57 16% 197 55% 69 19% 35 10% 0 0% 2.23

Mean Assessment Appeal

2.43

Grand Mean 2.82

Based on the analysis on Table 31, only 59% of the respondents agree to have received demand notices and reminders yearly on their properties. 47% of the respondents disagree to have been reminded and encouraged to pay the tax after receiving demand notices while 15% is undecided.63% disagree that property owners pay the tax willingly. 80% of the

143 respondents agree that they do not encounter problems making payments at designated banks.

Although the tax administrators claim to serve demand notices to every chargeable property yearly as shown on table 30, not many property owners agree to have received these demand notices. Again, 57% of the respondents are aware of the tax penalties and sanctions. 48%

agree these penalties have made taxpayers pay the tax promptly, while 26% disagree and 25% is undecided. 47% agree that sealing of properties for non payment of the tax has made taxpayers pay the tax promptly, 23% are undecided while 30% disagree. A lot of property owners are not aware of the tax penalties and sanctions. The penalties and sanctions have not also increased compliance. 66% of the respondents are not aware of their right to appeal if not satisfied with tax amount. 66% also do not agree that tax payers object at the panel set up by the government. 71% are of the opinion that aggrieved tax payers have no confidence in the tax appeal system. The mean rating for tax collection, tax enforcement and tax assessment appeal are 3.09. 3.00 and 2.43 respectively. This shows that tax collection and tax enforcement are carried out to a moderate extent while tax assessment appeals are achieved to a low extent. The grand mean of 2.82 shows that tax administration is administered to a moderate extent.

Table 32: Estate Surveyors and Valuers’ Overall Assessment of the Administration of APLUC.

No Themes N %

1 Non-Adherence to principle of equity (Benefit tax)

6 30

2 Poor Assessment 10 50

3 Poor Administration 2 10

4 Tax Payer Education 1 5

5 Non adherence to principle of equity(Ability to pay)

1 5

Total 20 100.0

144 Table 32, shows the Estate Surveyors and Valuers‟ general opinions of the administration of the APLUC. Of the 20 comments from 20 respondents, 6 revolve around the theme of Non-Adherence to the principle of equity (benefit tax). Cumulatively, this represents 30% of the responses. On the other hand, poor assessment method was the most dominant theme from the responses as this represents 50% of the responses while this was followed by poor administration which represents 10% and Non-adherence to principle of equity (Ability to pay) which represents 5%. This suggests that poor administration which also includes the assessment of the tax is a dominant problem of APLUC.

4.11 Research Question six: The Evaluation of the Property Tax System based on the