ABSTRACT

The study examines the Effect of Tax Avoidance and Tax Evasion on Personal Income Tax Yield in

Nigeria. Tax evasion and tax avoidance, a prob fern which seems to have defied solution, had

devilled the tax system right from colonial times. While some had blamed the situation on tax

authorities for not living up to expectation with regards to tax administration, others attribute it to

the unpatriotic attitude of tax payers. It was in this light of con/ending position that the researcher

can yout a survey in Nigeria with particular reference to Federal Inland Revenue Service Abia. The

sample size was derived statistically using Yaro Yamani formula. The sample size consists of three

hundred and lIve (305) employees of Federal Inland Revenue Service Abia. The study utilizes

primary and secondary data. Tables and percentages were used for the analysis. The Analysis of

Variance (ANOVA,) was used to test the hypotheses. The research findings disclose that

enlightenment and adequate utilization of tax revenue on public goods will discourage tax

avoidance and tax evasion, high tax rates encourage tax avoidance and tax evasion, personal

income tax weld has not being impressive and personal income tax rates are too high. The

researcher thereforeconcluded that there is a direct and positive relationship between tax

avoidance, tax evasion, tax rates and personal income tax yield in Nigeria. Hence recommended

that tax officials should be cons tantiv trained and retrained on the job, a deliberate and more

aggressive public enlightenment campaign should be embarked upon by government and the

reduction in tax rates for the poor.