ABSTRACT

This research work provides  a brief conceptual review on the two converging concepts:  tax evasion and avoidance and examine some  of the legally permissible  schemes for reducing them in Nigeria.  Empirically providing  evidence on their impact on revenue generation and economic  development,    the  study  adopts  survey  research  design.  Budgeted  tax  revenue, actual  tax  revenue,   tax  evaded  and  avoided  revenue  and  GDP  at  current  prices   were extracted for  the period of 1999-2015.   This was augmented with survey respondents  using research designed questionnaire validated by experts. Ordinary least square method of regression analysis was used to analyze the data.  The result reveals that lack of tax education on the citizenry and inefficient  use of tax are the major factors which induce tax evasion and avoidance with mean scores above 2. 5 on the scale. With t cal > t tab the work identifies the existence   of a significant  inverse   relationship  between federally collected  revenue and tax evaded  revenue  and  therefore   recommend  that  an  improvement    in  the enlightenment  of citizens and proper use of tax revenue in providing  basic social amenities can help curb tax evasion and avoidance in Nigeria.