ABSTRACT
The major problem facing the Nigerian tax
system has been high rate of engagement of personal income tax earners in
certain anti-tax activities/strategies thus widening the gap between the
governments budgeted tax revenue and actual tax revenue collected. It is based
on this problem that the research is carried out to access the causes and
effects of personal income tax evasion in Nigeria. The study adopts a
combination of survey research design and longitudinal design. Tax records on
estimated and actual revenues for a period of five years were collected from
Imo state Board of Internal Revenue. This was complemented with survey data
obtained from 216 respondents using research designed questionnaire validated
by experts. Descriptive statistics, correlation and regression techniques were
used in analyzing the data. Our result implicates tax evasion and avoidance as
a major cause of gap between assessed and collected personal in come tax
revenue. The work further identifies insufficient provision of social
amenities, poverty, corruption of tax officials/government officials, high rate
of illiteracy among tax payers and ignorance/misunderstanding of tax laws as
major causative factors of tax evasion and avoidance. With R2of .744 and a t
value of (-2.951) significant at 1% level shows that evaded personal income tax
has significant effect on collected personal income tax revenue. The study
therefore concludes that sustainable revenue generation to Nigerian government
could be achieved by checkmating tax evasion and avoidance contrivance through
the imposition and implementation of stiff penalty for tax evaders, provision
of basic amenities and proper assessment of tax payers' incomes.
IMO, O (2021). Assessment Of Causes And Effects Of Personal Income Tax Evasion In Nigeria (A Case Study Of Imo State). Mouau.afribary.org: Retrieved Nov 01, 2024, from https://repository.mouau.edu.ng/work/view/assessment-of-causes-and-effects-of-personal-income-tax-evasion-in-nigeria-a-case-study-of-imo-state-7-2
ORJI, IMO. "Assessment Of Causes And Effects Of Personal Income Tax Evasion In Nigeria (A Case Study Of Imo State)" Mouau.afribary.org. Mouau.afribary.org, 05 Jul. 2021, https://repository.mouau.edu.ng/work/view/assessment-of-causes-and-effects-of-personal-income-tax-evasion-in-nigeria-a-case-study-of-imo-state-7-2. Accessed 01 Nov. 2024.
ORJI, IMO. "Assessment Of Causes And Effects Of Personal Income Tax Evasion In Nigeria (A Case Study Of Imo State)". Mouau.afribary.org, Mouau.afribary.org, 05 Jul. 2021. Web. 01 Nov. 2024. < https://repository.mouau.edu.ng/work/view/assessment-of-causes-and-effects-of-personal-income-tax-evasion-in-nigeria-a-case-study-of-imo-state-7-2 >.
ORJI, IMO. "Assessment Of Causes And Effects Of Personal Income Tax Evasion In Nigeria (A Case Study Of Imo State)" Mouau.afribary.org (2021). Accessed 01 Nov. 2024. https://repository.mouau.edu.ng/work/view/assessment-of-causes-and-effects-of-personal-income-tax-evasion-in-nigeria-a-case-study-of-imo-state-7-2