ABSTRACT

 The major problem under personal income taxation as practices in Abia state and Nigeria in general lies in collection oftaxes especiallyfrom self-employedpeople. This study is to critically appraise the effect ofpersonal income tax evasion and avoidance on tax yield in Abia state. The study compare total estimated revenue and total actual revenue from personal income tax, personal income tax evasion and avoidance have any significant effect on tax yield ofthe state and ascertain respondents' opinion to inefficient and ineffective utilization of tax yield by government on how it affects evasion and avoidance. The study employed Tax benefit, cost of service, ability to pay and proportionate theory. The study used ex post- facto and survey research design. The study was subjected to judgmental sampling method. Data was source from both primary and secondary sources and was analyzed using Pearson's correlation co-efficient. The findings ofthe study states that there is a significant relationship between the total estimated and total actual revenue from personal income tax, inefficient and ineffective utilization oftax yield by government have significant effect on evasion and avoidance and that personal income tax evasion have a significant effect on tax yield of the state. The study recommends the government should provide social amenities by judiciously using the tax revenue, government could set up revenue court to ensure tax cases are handled effectively and ensure that qualified personnel are trained to handle tax matters effectively.