Impact Of Tax Evasion On State Revenue Generation. (A Study Of Abia State Board Of Internal Revenue In Nigeria)

ABSTRACT

The study focused on the effect of tax evasion in Nigeria. The objectives of the study is to investigate how taxes are evaded in Abia state, to examine the opinion of BIR employees on the effect of tax evasion on revenue generation in Abia state and to identify how to control the rate of tax evasion. To achieve the objective of the study, survey research design was adopted. A total of 250 questionnaires were administered to the selected staff of the company. The researcher adopted primary data in getting the required information. Data in Abia State Board of Internal Revenue was used. In testing the hypothesis Analysis of Variance (ANOVA) statistics was used. The findings in chapter four revealed that there is a significant relationship between tax evasion and revenue generation, it also revealed that the opinion of BIR employees are significantly different on the effect of tax evasion on revenue in Abia state. The researcher recommended that 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 taxpayers of changes in tax legislation and need for compliance. Suitable personnel should be recruited and Revenue personnel generally trained and retrained to cope with the demands of the job. Staff should also be motivated through good salary package to insulate them from fraud and other corrupt practices.