ABSTRACT

Taxation is acknowledged as a very essential instrument for National Development and growth in many societies and nations in the world over centuries. Being among the main guides by whom development and growth ought to be measured in any civilization is the extent of wealth, which is generated by economic undertaken in that society. The main objective of this paper is to review the taxation and tax evasion concept and furthermore provide a brief overview of Nigerian tax system with specific reference to Enugu State. The paper in an attempt to achieve it goals provide conceptual and empirical evidence of evilness of tax evasion and what motives behind the phenomenon globally. Furthermore, the paper provide brief but precise knowledge of Nigerian tax system, tax policy and underpinning tax law of the country. Similarly, objectives and guiding principle, driving institution of Nigerian tax system, administration and policy and concept of UTIN where also discuss. Tax evasion is the reduction of tax liabilities by not informing the revenue of all relevant facts. Tax evasion is an illegal means of reducing tax liability by making up false returns or by deliberate omission of some sources of income from the returns. This is a crime and therefore attracts penalty from the government. The scope of study is strictly to Enugu State Board of Internal Revenue Service and its various tax stations. The scope of study was limited to Enugu State due to financial and time constraint. The state board of internal revenue and other related financial bodies were sampled and examined accordingly.