ABSTRACT

This research work provides a brief conceptual review on the two converging concepts; tax evasion and avoidance and examines some of the legally permissible schemes for reducing tax evasion and avoidance in Nigeria. Empirically providing evidence on their impact on revenue generation and economic development. The study adopts survey research design, collected tax figures on petroleum profit tax (ppt), value added tax (vat) and company income tax (cit) were extracted for the period (2000-2012). This. was augmented with survey respondents using research designed questionnaire validated by experts. Correlation analysis, regression and t-test statistical techniques were used to analyze the data . The result reveals that the remoteness of taxpayers from the Government, the absence of a 'Quid Pro Quo' and the absence of spirit of civic responsibility are the major factors which induce tax evasion and avoidance with mean score above 2.5 on the scale . With correlation coefficient of -486 at 5% level, The work identfIes the existence of a signfIcant 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.