AN APPRAISAL OF PAY AS YOU EARN (PAYE) SYSTEM OF TAXATION IN NIGERIA (A STUDY OF NASARAWA STATE INTERNAL REVENUE SERVICE)

ABSTRACT This research work focused on appraisal of Pay as you Earn System of Taxation in Nasarawa State Internal Revenue Service. The main objective of the study is to determine the extent to which non availability of tax statistics affect Pay-As-You-Earn (PAYE) in Nigeria. The study used survey research design and data were collected from primary and secondary source. Secondary source of data was collected from textbooks, periodic articles and journals. Questionnaires were distributed to derive findings used in this study. The sample size of 52 from a population of 60 staff were used and was chosen among the number of department / sections using Taro Yamane formula. Data were analyzed using table and simple percentage and chi-square. It was discovered among other things that Pay as you earn system effectively streamline tax collection in Nasarawa State Internal Revenue Service. From the findings it is recommended that Government should review and improve its tax laws to enforce tax penalties on tax evaders. Government should modify the tax penalties through stiffer penalties to discourage the evasion of personal income taxes by the taxpayers, some of the penalties needed to be modify are as follows: Withholding Tax (WHT) penalty collected by the state and Personal Income Tax (PIT) pay as you earn penalty.