ABSTRACT

This work is a fairly critical assessment of the impacts and the contributions of Federally collected tax revenue generation as well as the tax avoidance arid evasion syndrome and the effects on the national budget. Hence economists suggest that their effects be analyzed are reported when necessary. In every fiscal year, government prepares a budget which is an estimate of expected tax income and proposed expenditure. If the budget does not equal the actual tax collected, a gap is created. This has been the main problem in Nigeria economy, which is mainly due to the collection method, tax avoidance and evasion, corruption among government officials etc. this gap and its consequences on government revenue and responsibilities compelled the reason for this study. The main objective is to establish the existence of tax avoidance and evasion, its relationship with government revenue and its effect on government revenue, as well as encourage stiffer penalties for tax offenders according to their intensity and with the advancement in technology, computerization of tax data has become imperative. A survey was carried out at Federal Inland Revenue services based on a total population of tax administrators of all taxable persons in the country and sample size of one hundred using a highly structured questionnaire for data collection in addition to official records and publication of the authorities. Regression methods was used to analyze data, and the results were significant. Tax evasion and avoidance have much impact on Federally collected tax Revenue generation corruption and other internal factors have their impacts also, this Researcher therefore recommend among others, stiffer penalties for tax evasion and avoidance and all corrupt practices, motivational incentives for employees of the Federal Inland Revenue Services.