DETERMINANTS OF PERSONAL INCOME TAX COMPLIANCE IN NIGERIA : PRACTICING AND NON-PRACTICING CHARTERED ACCOUNTANTS IN NIGERIA
CHAPTER ONE
1.1    BACKGROUND OF STUDY
    A chartered accountant is a qualified number of the institute of Chartered Accountant of Nigeria (ICAN), a body established by the Act of Parliament No. 15, of 1965, with a primary objective of determining the standard of knowledge and skills to be obtained by persons seeking to become members of the accounting profession in Nigeria. By implication a chartered accountant must have successfully undergone intensive academic and professional training as required by the rules and regulations of the institute to be able to contribute professionally to the economic needs of the society.
    The training and examinations which a member of the institute must have successful completed before admission provides a business education of the highest order. Remaining a member of the institution, in good standing, required of a chartered accountant, continuing commitment to integrity, independence and objectivity and an abiding interest in seeking to remain up to date in the legal, technical and professional matters that affect his work.
    Any environment where resources are committed to the attainment of economic objective will certainly require the services of a chartered accountant. As a result, chartered accountants are invaluable tools in environments such as:
i.    Government  establishment
ii.    Commerce and industries, and
iii.    Educational institutions.
The services required of a chartered accountant in the above organization depend on the particular need of the organization concerned, which may be in any of the following services areas.  
a)    Accountancy Services
•    Setting up a sound accounting system including computerization of manual system.
•    Preparation, maintenance and adequate record keeping of all financial transactions.
•    Preparation of annual accounts and reports viz: profit and loss accounts, balance sheets source and application of funds, etc.
•    Establishment and operation/maintenance of payroll systems.
•    Assisting in the improvement of internal control systems
•    Assisting in the improvement of internal control systems.
b)      Auditing and Investigations Service
-    Auditing of financial statements to comply with statutory requirements.
-    Investigations of financial matters.
c)    Taxation Services
•    Preparation of tax computations and agreeing tax liabilities with
d)    Management Services
•    Analysis and interpretation of accountants to show areas of weakness, strengths and emphasis
•    Project analysis and appraisals
•    Cash/working capital management
•    Design and maintenance of accounting and management information systems.
•    Development of computer systems.
•    Conducting feasibility studies and preparation of feasibility reports.
•    Personal recruitment and manpower development
•    Company formation and registration and general advice on company secretarial matters including filling of annual returns.
It is interesting to note that chartered accountants can be further sub-classified into practicing and non-practicing. The main difference between these two classifications is that the non- practicing chartered accountants can undertake all the services listed above as do the practicing, except for auditing of financial statements to comply with statutory requirement. In other words, the practicing chartered accountant is a member of the institute who applied for and was granted licensed to practice by the council while the no-practicing accountant is one that has not been granted such a license. A number is not eligible for this license until he has a continuous period of thirty months before or after or partly before and after becoming a member of the institute been employed in a responsible accountant in public practice in Nigeria or elsewhere.
    Chartered Accountants besides their professional training are also members of the large community. Like every rational man, they make decisions, interact, react to their environment, which can either be legal, economic, political, social, technological or otherwise. They also make rational choices amongst competing alternatives. Infact, one of their functions in management include project analysis and appraisals, i.e they advice on investable areas amongst industries and even companies within the same industry. The fact that they are not excluded from the investing public also means that they can analyse investments that they are aware of and appraise them in order to streamline their preferences.
    The institute of Chartered Accountants of Nigeria (ICAN) defines investments as assets acquired by an enterprise for purpose  of capital appreciation or income generation without any activities in form of production, trade or provision of service. But at  the individual level, which includes the chartered accountants, investments, involves trading on shares, securities and stock market which are already existing in the  stock market (Financial Assets). It also includes engaging in ventures involving commitment of economic resources to attainment of specified objectives.
    For one, including the chartered accountants, to engage in investment activities, there is needed to be aware of the investment profile and also to be to appraise the investment in other to make a choice. However, this project is designed to know the investment awareness and preferences amongst practicing and non-practicing chartered accountants in Nigeria.
1.2    PROBLEM DEFINITION
    Accountants are supposed to be well trained in financial matters. Their level of exposure and financial strength could tend to affect their investment ability for example, reading financial reports about companies and being able to ascertain whether or not a company is doing well. The audited financial statements prepared by a company reveal the economic well being or otherwise of the company. It is expected that such knowledge would stimulate investment decisions even for the chartered accountant.
    In particular, the researcher is interested in determining the investment awareness and preferences amongst practicing and non-practicing chartered accountants. This can be achieved by providing empirical answer to the following questions.
i.    Do Accountants invest at all?
ii.    What is their investment preference?
iii.    How much do they invest on annual basis?
iv.    What are their motives for investing?
v.    What are the general problems affecting their investment endeavour?
vi.    What kind of analysis do they carry out before decision on what to invest on?
1.3    OBJECTIVES OF STUDY
    The major objective of the study is to find out the investment preference and awareness of chartered accountants both in the public and private sector. In this regard, the following sub-objectives will be pursued.
1.    To identify the level of Accountants investments
2.    To find out their investment preference
3.    To determine the level of shareholdings and distribution of share holding
4.    To determine the motives behind their investments   
5.    To examine the problems affecting their investment endeavour.
1.4    HYPOTHESIS
    It is generally accepted that inflation, income level, expected rate of returns etc, make an impact on individual investment decision. In this study, following hypothesis would be tested.
i.    There is more investment awareness amongst practicing than non-practicing chartered accountants.
ii.    Practicing and non- practicing chartered accountants have different investment preferences.
1.5    SCOPE OF STUDY
    This study is restricted to practicing and non-practicing chartered accountants in Nigeria. Chartered accountants in Nigeria carry out their day to day activities in the following works of life.
i.    Government departments
ii.    Statutory bodies
iii.    Commerce and industry
iv.    Educational institutions
v.    Practicing firms and
vi.    Personal business.
As a result, questionnaires shall be distributed amongst the sin possible state of the chartered accountants community. In this way, the outcome shall be properly representative.
1.6    SIGNIFICANCE OF STUDY
    A study of this nature would be relevant to several people and institutions. They include:
1.    The chartered accountants and the institute itself.
2.    Investors (potential, present and future)
3.    Stock brokers
4.    Financial analysis and the Inland Revenue
5.    General public (including research students)
1.7    DEFINITION OF TERMS
1) Equity: This is a security representing residual ownership in a corporation. If there is no preference in payment of individual it is called common stock. If the preference is shown among owners, it is called preferred stock.
2) Yield: It is a general term for the percentage return on a security investment
3) Planning: This is the specific process of setting goals and developing ways to reach them. Stated otherwise, planning represents efforts to predict events and be prepared to deal with them.
 REFERENCES
Humpton, J.J. (1989) Financial Decision making concept,
    problem and cases (New Delhi: Practice Hall of India).
ICAN (1977) why  do you need a chartered accountant (Institute
    of Chartered Accountant of Nigeria) Academy Press Ltd.