Effect of tax avoidance and evasion on economic development of Abia state.:- Kalu Oluchi G

ABSTRACT

Taxation as defined by Anyanwu (1997), is a compulsory levy by the government on individuals, companies, goods and services to raise revenue for its operations and to promote social equity through the redistribution of income. In line with this frame ofthought, it appears that taxation is a source of government revenue by which individuals and cooperate bodies are mandatorily required to pay certain proportion of their earnings to the government for the course of development. Bhatia (2003), also defined tax as a compulsory levy payable by an economic unit to the government without any corresponding entitlement to receive from the government.