The impact of tax evasion and tax avoidance in nigeria economy

Project Abstract

Tax evasion and tax avoidance have been persistent issues in the Nigerian economy, significantly impacting government revenue and overall economic development. This study aims to analyze the consequences of tax evasion and tax avoidance on the Nigerian economy, focusing on the various methods used by individuals and corporations to evade or avoid paying taxes. By examining the existing literature on this topic and conducting primary research through surveys and interviews with tax experts and government officials, this research will provide a comprehensive overview of the extent of tax evasion and tax avoidance in Nigeria. The findings of this study will shed light on the significant revenue losses experienced by the Nigerian government due to tax evasion and avoidance practices. Moreover, the research will explore the implications of these practices on public service delivery, infrastructure development, and overall economic growth in Nigeria. By understanding the magnitude of tax evasion and avoidance in the country, policymakers can develop more effective strategies to combat these practices and enhance tax compliance among individuals and businesses. Furthermore, this study will investigate the factors driving tax evasion and avoidance in Nigeria, including institutional weaknesses, complex tax laws, corruption, and lack of enforcement mechanisms. By identifying these key drivers, the research aims to provide insights into how the Nigerian government can strengthen its tax administration system and improve compliance among taxpayers. Additionally, the study will examine the role of tax education and awareness programs in promoting voluntary compliance and reducing tax evasion and avoidance. Overall, this research will contribute to the existing literature on tax evasion and avoidance in developing countries, with a specific focus on the Nigerian context. By highlighting the economic consequences of these practices and proposing policy recommendations to address them, this study aims to support efforts to enhance revenue generation, improve public service delivery, and foster sustainable economic development in Nigeria. Through a comprehensive analysis of tax evasion and avoidance, this research seeks to provide valuable insights for policymakers, tax authorities, and other stakeholders involved in tax administration and economic development in Nigeria.

Project Overview

<p> </p><p><strong>1.1 HISTORY OF DEVELOPMENT</strong></p><p>In Nigeria their so many form of taxation dating back of the<br>days of our great ground father whose by communities dated themselves through communal labour to prosecute community projects.<br>Taxation is process on machinery by which group or communities made contribution from their income in some agree amount and method for the purpose providing amentias for the society. It is because of this it I often referred to as civic responsibility.<br>It is important to note that the present tax has in Nigeria was been out of the Rouseman’s Commission of inquiry of last.<br>But before that, we only had what was called the income tax ordinance for the colonies and which was very similar Raismars recombine nature was the basis for providing in section to, subsection of the Nigeria prospects for reform (Anarticle published in Business Time on May 20, 1786).<br>Taxation can be divided in two basic profiles we have the direct taxation and indirect tax is based on ascertainment of income rather on individual a group of individuals co-operate bodies and institution under this was have personal income tax and company income tax. The personal income is one which of individual is assessed and resident by the state on those individual resident in the state, which the companies income tax is cleared on corporate bodies is the responsibility of federal government through the federal board of inland revenue indirect taxation is lived on consumption of goods or services and each of consumption.<br>In various countries, various government rely heartily on taxation on as in aid to encouraging capital formation policy.<br>In a developing economy, tax may be collected strutted in such way that the high may be collected and even raise revenue for the economy of the country.<br><strong>1.2 PRESENT DAY TAXATION IN NIGERIA</strong><br>Taxes are one of the major sources or revenue for all<br>government in Nigeria.<br>The taxes collected income back to the tax payer in the form of social amenities, like building as school, hospital.<br><br></p> <br><p></p>