Effect Of Tax Evasion And Avoidance On Economic Development

USUWACHIAMAKA GIFT | 1 page (17601 words) | Projects

ABSTRACT

This study  examines  the effect  of tax evasion  and avoidance  on economic development ofNigeria.Descriptive andsurveyresearchdesignwasemployedfor the study. Theprimary  sources   of data were adopted for  the study through questionnaires andoralinterviews.Thepopulation ofthestudywassixty-one  (61) andarealsamplesizeofforty-five (45).Statisticaltoolssuchastables,percentages, and  simple regression model were used in theanalyses of data and testing of hypotheses. Thestudyrevealedthattaxavoidanceandtaxevasionhasnosignificant effectsonincometaxadministration inNigeria,at5%levelofsignificant;  Other findings  include, thereisnosignificant effectoftaxavoidance andtaxevasionon income tax administration  in  Nigeria  Tax avoidance  and tax evasion has a significant effectontheexpected taxrevenue inNigeria  andthatTheeffectoftax avoidance  and tax evasion   is significant  on tax rates in Nigeria.  The study recommends among otherthingsthat;  Government shouldreduce taxrates,since hightaxrateleadstotaxavoidance  andevasion, further, moreskilledpersonnel shouldbeappointed tohandle  thetaxadministration ofNigeria, asthisalsowill minimizetaxavoidanceandtaxevasion. 


TABLE OFCONTENTS

Titlepage

Declaration 11

Certification 111

Dedication iv

Acknowledgement v

Listoftables IX

Abstract x


CHAPTERONE:INTRODUCTION

1.1     BackgroundtotheStudy l

1.2StatementoftheProblem 2

1.3Objectives oftheStudy 3

1.4ResearchQuestions 3

1.5Statementofhypothesis 3

1.6Scopeofthestudy 4

1.7 Significance oftheStudy 4

1.8Limitationofthestudy 5

1.8.1Money 5

1.8.2   sourceofinformation 5

1.8.3Inadequate recordkeeping 5

1.8.4Time 5

1.9Definitionofterms 5


CHAPTERTWO:REVIEWOFRELATED LITERATURE

2.1ConceptualFramework 8

2.1.1MeaningofTaxation 8

2.1.2DefinitionofTaxation 9

2.l.3Principles  ofTaxation 9

2.1.3.1Equity 9

2.1.3.2Certainty 10

2.l.3.3Convenience 10

2.1.3.4Economy 10

2.1.4CannonsofTaxation 10

2.1.4.1Simplicity 10

2.1.4.2   Elasticity 10

2.1.4.3Productivity 1 I

2.1.4.4Impartiality 11

2.1.4.5Neutrality 11

2.l.5Impact,Incidence andTaxable Capacity 11

2.1.5.1TheImpactofTax                                                                                                            1  I

2.1.5.2TheIncidence ofTax11

2.1.6TypesofTaxSystem                                                                                                           12

2.1.6.1Progressive TaxSystem                                                                                                   12

2.1.6.2Regressive TaxSystem12

2.1.6.3ProportionalTaxSystem                                                                                                 12 

2.1.7    Kinds ofTaxes

2.1.7.l        DirectTax 12

2.1.7.I.I Advantages   ofDirect  Taxation 12

2.l.7.1.2 DisadvantagesofDirectTaxation 13

2.l.7.2 Indirect  Tax 13

2,1.7.2.l Advantages   ofIndirect   Taxation 13

2.1.7.2.2 Disadvantages    oflndirect  Taxation 13

2.1.8HistoricaloriginofTax inNigeria                                                                                               14

2.1.9  Ta xAdministrationinNigeria 14

2.1.9.1 AttheFederalLevel 14

2.1.9.2 AttheStateLevel 15

2.1.9.3 AttheLocalGovernmentLevel 15

2.1.lO TaxLegislationinNigeria 15

2.1.10.1 CapitalTransfer act1979 16

2.1.10.2 StampDuties Ordinance  1958 16

2.1.10.3 IndustrialDevelopment   (incometaxrelief)  decree 19 16

2.1.10.4 TheIncomeTax(ArmedForcesandOtherPersons)(Special Provision)

Decree 1972 16

2.1.10.5 Finance MiscellaneousTaxationDecree 1985 16

2.1.11 ReasonsforImpositionofTax 17

2.1.12 FunctionofTaxation 18

2.l.12.I ResourceRe-allocation 18

2.1.12.2 Revenue 19

2.1.12.3 IncomeRedistribution 19

2.1.13 EffectsofTaxation 19

2.1.13.1 IncentivetoInvest 19

2.1.13.2 InflationandTaxation 20

2.1.13.3 Incentives Works 20

2.1.13.4 ItReducesProduction20

2.l.13.5ItWillAlter Demand  Supply20

2.1.13.6CausesScarcityofGoods                                                                                             20

2.1.14TaxAvoidance  andEvasion20

2.1.14.1TaxAvoidance                                                                                                               21

2.1.14.2TaxEvasion21

2.1.15    CausesofTaxEvasionandTaxAvoidance inNigeria                                              22

2.1.15.1     TheAbsenceofa"QuidProQuo"                                                                                     22

2.1.15.2Inequitable  DistributionofAmenities22

2.1.15.3Misuse orMismanagement  ofCollections  made                                                        22

2.1.15.4Remoteness ofTaxpayers fromtheGovernment                                                        22

2.1.15.5NoPunishment forEvaders                                                                                          23

2.1.16   EffectsofTaxandAvoidance onTheEconomy/Government Revenue inNigeria23

2.1.17MethodofTaxAvoidance andEvasion24

2.1.18MeasurestoCurbTaxEvasion24

2.1.19DifferencesbetweenTaxEvasionandTaxAvoidance                                               25

2.2TheoreticalFramework26

2.2.1TheCostofService Theory                                                                                           26

2.2.2 TheoryofTaxation 26

2.2.3 Ability-to-Pay  Theory 26

2.2.4 Proportionate Theory 27

2.2.5 TaxEconomyTheory 27

2.2.6 BenefitTheory 29

2.2.6.1 Connection betweentheBenefits Conferred 29

2.2.6.2 Expenditure Incurred 29

2.3 EmpiricalReview 29


CHAPTER THREE: METHODOLOGY

3.1ResearchDesign                                                                                                               33

3.2      PopulationofStudy33

3.3      Samplingprocedure andSample Size Determination                                                   34

3.4      MethodofDataCollection                                                                                              35

3.5Validityandreliabilitytest                                                                                             36

3.5.1Reliability  test                                                                                                                  36

3.5.2Validitytest36

3..6          Methodofdataanalysis36

3.6.1ModelSpecification37

3.7      Decisionrule                                                                                                                    38


CHAPTERFOUR: DATAPRESENTATION, ANALYSIS ANDDISCUSSION

4.1              DataPresentation39

4.2    Dataanalysis40

4.2.1Analysis  ofbiodata42

4.2.2Analysis  ofresearchquestions                                                                                             46

4.3   Testofhypothesis                                                                                                                 52


CHAPTER  FIVE: SUMMARY OFFINDINGS,CONCLUSIONS ANDRECOMMENDATIONS

5.1SummaryofFindings56

5.2Conclusion57

5.3Recommendations58

REFERENCES


Overall Rating

0.0

5 Star
(0)
4 Star
(0)
3 Star
(0)
2 Star
(0)
1 Star
(0)
APA

USUWACHIAMAKA, G (2021). Effect Of Tax Evasion And Avoidance On Economic Development. Mouau.afribary.org: Retrieved Oct 30, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-tax-evasion-and-avoidance-on-economic-development-7-2

MLA 8th

GIFT, USUWACHIAMAKA. "Effect Of Tax Evasion And Avoidance On Economic Development" Mouau.afribary.org. Mouau.afribary.org, 15 Feb. 2021, https://repository.mouau.edu.ng/work/view/effect-of-tax-evasion-and-avoidance-on-economic-development-7-2. Accessed 30 Oct. 2024.

MLA7

GIFT, USUWACHIAMAKA. "Effect Of Tax Evasion And Avoidance On Economic Development". Mouau.afribary.org, Mouau.afribary.org, 15 Feb. 2021. Web. 30 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-tax-evasion-and-avoidance-on-economic-development-7-2 >.

Chicago

GIFT, USUWACHIAMAKA. "Effect Of Tax Evasion And Avoidance On Economic Development" Mouau.afribary.org (2021). Accessed 30 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-tax-evasion-and-avoidance-on-economic-development-7-2

Related Works
Please wait...