The Effect Of Tax Evasion And Avoidance On Revenue Generation And Economic Development In Nigeria

ABSTRACT

 This research work provides a brief conceptual reviews 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 (198 I2007). This was augmented with survey respondents using research designed questionnaire validated by experts. Correlation analysis, regression and t-test statistical techniques were used to analyse the data. The result reveals that lack of tax education on the citizenry and inefficient use of tax are the major factors which induces tax evasion and avoidance with mean scores above 2.5 on the scale. With correlation coefficient of - .486 at 5% level, 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.