ABSTRACT

The study is to investigate the impact of taxation on revenue generation with reference to Abia State Board of Internal Revenue. The objectives of the study are to examine the reason why people evade tax, to examine the reason why self employed people blatantly refuse to pay tax and to ascertain the reason for low revenue derived from tax. To achieve the objective of the study, survey research design was adopted. A total of 305 questionnaires were administered to the selected tax collectors and tax payers of Abia State board of Internal Control. The researcher adopts both primary and secondary data in getting the required information. In testing the hypothesis simple regression analysis was used. The findings in chapter four revealed that there is a significant relationship between tax evasion and revenue generation. It also revealed that fraudulent activities by the tax collectors has a significant effect on revenue generation. The researcher recommended that a census of the taxation population should be conducted throughout the state. This will now update the tax register so that any given point in time the tax office can give details of taxation adults and businesses thus reducing the incidence of tax evasion. Nigeria Government should embark upon other means of publicity such as radio messages, television advertisement, post bills as well as the use of town criers to inform tax payers of changes in tax legislation and need for compliance.