ABSTRACT
This research work gives an overview assessment of the Effects of Tax Evasion and Avoidance on:Tax Revenue and examines the causes such as inequitable distribution of 'social amenities, poverty, illiteracy, loopholes in the tax laws and has the objectives. of determining the factors that induce Tax Evasions and Avoidance by Nigerian citizens, determining the existence of a significant relationship between tax revenue generated and lost in the state and evolving strategies for minimizing tax evasion and avoidance. The study adopts Survey research design and longitudinal survey. Tax records for a period of nine years were collected from Lagos State Board of Internal Revenue. To complement the secondary data, responses to selected research questions relevant to the topic under study was obtained from respondents using research designed questionnaire validated by experts based on the consistency of the results obtained. Descriptive Statistics, Pearson's Product Moment Correlation (PPMC)and Simple Linear Regression techniques were employed in analyzing the data. The results obtained revealed six causative factors, five economic and social effects and five control strategies of and for Tax Evasion and Avoidance with mean scores above the acceptable mean score of 1.5 on the scale respectively. The Correlation results of H01 and H02 indicates a strong proportional relationship between evaded tax revenue and total collected tax revenue and between evaded tax revenue and budgeted tax revenue respectively at 0.01 significance level. The regression result of H03 indicates that R2 = 0.910 showing the degree of change in Total Collected Tax Revenue as a result of change in Tax Evasion and Avoidance. Based on these, we can therefore conclude that as a result of the identified causative factors, taxpayers perpetrate these unpatriotic acts of Tax Evasion and Avoidance leading to low revenue to the government, inequality in the society, poor state and underdevelopment of social infrastructure amongst others. Therefore, government should judiciously utilize tax revenue, constantly train and re-train workers, embark on a deliberate and more aggressive public enlightenment campaign, plug the loopholes in the Tax laws and establish more revenue courts to impose heavy monetary penalties and criminal sanctions on tax offenders to curb the incidence of Tax Evasion and Avoidance and reduce the effects on the ailing economy of Nigeria.
TABLE OF CONTENTS
Title page
Project Assessment
Declaration
Certification
Dedication
Acknowledgement
Table of contents
List of Tables
Abstract
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Slalcmcnl of the Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Justification of Study 7
1.7 Lirnitat ion of Study 8
CHAPTER TWO LITERATURE REVIEW
2.1 Introduction
2.2 Historical Background of Taxation in Nigeria
2.2.1 Tax Authorities
2.3 Meaning of Tax and Taxation
2.4 Pru rciplc s of Taxation
2.5 Classification of Taxes
2.5.1 Advantages of Direct Taxes
2.5.2 Disadvantages of Direct Taxes
2.5.3 Advantages of Indirect Tax
2.5.4 Disadvantages of Indirect Taxes
2.6 The Nigerian Tax System
2.7 Constitutions of Tax Administration System in Nigeria
2.7.1 Tax Policy
2.7.2 Tax Laws
2.7.3 Tax Administration
2 .8 The Concept of Tax Evasion and Avoidance
2.9 Qualities of Good Tax Administrators
2 .10 Nigerian Tax Laws
2 .11 Tax Evasion
2.11.1 Tax Avoidance
2.11.2 VAT and Tax Avoidance
2.12 Personal Tax Reliefs an<l Allowances
2.12.1 Personal Allowance
2.12.2 Additional Personal Allowance for Disabled
2.12.3 Wife Allowance
2.12.4 Children Allowance 42
2. 12.:5 l1cpc11dcnt J{clnt ivc Allow.uu-« IJ ~\
'.L 12. Life /\:,mun111n: l~clid ·U
'.2. l'.2.7 l~clicf for Cost of Equity in l~cscarch and Dcvcloprncnt Company 44
2.12.8 Relief for Donation to Recognized R~search and Development Centre 44
2.12.9 National Housing Fund (NIIF) 44
2.12 Methods of Tax Evasion 44
2.1] Methods of Tax Avoidance 114
2.14 Offences and Penalties 45
2.15 Extent of Tax Evasion an<l Avoidance in Nigerin 47
2.16 Extent of Tax Evasion and Avoidance in Nigeria 48
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design 51
3.2 Scope of the Study 51
3.3 Sample and Sampling Techniques 51
3.4 Population of the Study 52
3.5 Data Collection Procedure 52
3.5.1 Instrument(s) 52
3.5.2 Validity and Reliability 52
3.5.3 Administration 53
3.6 Data Analysis Procedure
~.6.1 Dcacriptivc Statiatics
3.6.2 Pearson's Product Moment Correlation (PPMC)
3.7.3 Simple Regression Analysis
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Data Presentation and Analysis
4..2 Profile of Respondents
4.3 Causes of Tax Evasion and Avoidance
4.4 Economic and Social Effects of Tax evasion and Avoidance
4.5 Strategies for Minimizing Tax Evasion and Avoidance
4.6 Hypothesis Testing-
4.6.1 Testing for Correlation between Evaded Tax l~cvcnuc and Total Collected Tax l~cvcnue
4.6.2 Testing Fo1· Corrclntion Between Tux Revenue •md Budgeted Tax Revenue
4.6.3: Testing For the Effect of Tax Evasion and Avoidance on Total Collected Tax Revenue
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary
5.2 Recommendation
5.3 Conclusion
REFERENCES
IREM, M (2020). EFFECTS OF TAX EVASION AND AVOIDANCE ON TAX REVENUE (A STUDY OF LAGOS STATE). Repository.mouau.edu.ng: Retrieved Nov 10, 2024, from https://repository.mouau.edu.ng/work/view/effects-of-tax-evasion-and-avoidance-on-tax-revenue-a-study-of-lagos-state
MOUAU/05/5518, IREM. "EFFECTS OF TAX EVASION AND AVOIDANCE ON TAX REVENUE (A STUDY OF LAGOS STATE)" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 26 Mar. 2020, https://repository.mouau.edu.ng/work/view/effects-of-tax-evasion-and-avoidance-on-tax-revenue-a-study-of-lagos-state. Accessed 10 Nov. 2024.
MOUAU/05/5518, IREM. "EFFECTS OF TAX EVASION AND AVOIDANCE ON TAX REVENUE (A STUDY OF LAGOS STATE)". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 26 Mar. 2020. Web. 10 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effects-of-tax-evasion-and-avoidance-on-tax-revenue-a-study-of-lagos-state >.
MOUAU/05/5518, IREM. "EFFECTS OF TAX EVASION AND AVOIDANCE ON TAX REVENUE (A STUDY OF LAGOS STATE)" Repository.mouau.edu.ng (2020). Accessed 10 Nov. 2024. https://repository.mouau.edu.ng/work/view/effects-of-tax-evasion-and-avoidance-on-tax-revenue-a-study-of-lagos-state