ABSTRACT

The objective of this topic impact of tax evasion is to identic the causes and effect of tax evasion in Nigeria economy the study also discusses problems which affect the payment of taxes in the country which is especially attributed to tax evasion, its effect and also make reasonably recommendations to solve them. This Study concentrated only on Osisioma Ngwa Local Government Area. It seeks to find out how tax evasion and avoidance can be reduced or if possible eliminated. Questionnaires and personal interviews were employed in the collection of primary data, textbooks, newspapers, journals etc formed the basis for secondary data. Analysis was carried out by the use of percentages (frequency occurrence) and for hypothesis chi-square (x2) method was used. The findings of the study include the following. There is existence of tax evasion and avoidance in Nigeria, precisely in Osisioma Ngwa Local Government Area Also tax evasion has unfavourable effect on revenue generation in Nigeria. Moreover, there is the problem of illiteracy, ignorance and unpatriotic among tax payers. The problem of tax evasion in Nigeria can be reduced climihatcd if there is a better relationship between the tax payer, tax collectors and government. If there is proper englightment campaign where experiences tax officials are employed to handle tax matters. Also it' there is adequate social amenities and also apparent utilization of realized tax revenue and management in the tax law.