The Effect of Tax Evasion and Avoidance on Revenue Generation in Nigeria
Keywords:
Tax Evasion, Tax Avoidance, Revenue, Income Tax, Value Added TaxAbstract
Nigeria has suffered some serious injuries on revenue generation due to the increase in the level of tax evasion and tax avoidance. This study examines the effect of tax evasion and tax avoidance on revenue generation in Nigeria. The study’s population comprises of the Federal Inland Revenue Service, National Bureau for Statistics and Central Bank of Nigeria for a ten-year period from 2012-2021.The study employed the use of judgmental sampling technique. The secondary data was used for the study and was derived from the annual reports of Central Bank of Nigeria and statistical bulletins, Federal Inland Revenue Service and national Bureau of Statistics records. The study makes use of robust methodological approach. Based on the findings, the study reveals that EAPPT and EACIT is a significant determinant of revenue generation in Nigeria. Similarly, EAVAT, EACGT and EAET have a significant and negative effect on revenue generation in Nigeria. In view of the above findings, the study recommends establishing a well-equipped data base on all taxpayers in federal, state, and local government in Nigeria, as well as the establishment of a federal government revenue court to investigate cases of tax avoidance and evasion by government officials; the government should guarantee that the authority of those courts is expanded to include state and local governments.