Effects of Personal Income Tax Evasion and Avoidance on Government Revenue in Abia State:- Ndukwe Nnanna O

ABSTRACT

 This study investigated the causes and effects ofpersonal income tax evasion and avoidance on government revenue in Abia State. The major objective ofthe study is to ascertain whether tax evasion and tax avoidance affect personal income tax generation in Nigeria. The specific objectives are to: (i) Identify the factors or problems militating against tax assessment and collection in Nigeria, (ii) Determine whether inefficient tax administration induces tax evasion and lax avoidance. Survey research design was adoptedfor the study. The researcher adopted the use oj primary data in gathering the required information. In testing the hypothesis, simple regression was used. Thefindings show that: (i) Tax Evasion and Tax Avoidance have a negative effect on Personal Income Tax generation, (ii) High tax rate and ignorance on the part oftax payers cause tax evasion and tax avoidance. (Hi) Lack of proper tax registration and inconvenience of tax collection militate against efficient tax assessment and collections. The researcher recommends that tax laws aimed at negating or reducing the rate oftax evasion and tax avoidance should be made andproperly implemented to punish the offenders.