Get the complete project »
- The Complete Research Material is averagely 50 pages long and it is in Ms Word Format, it has 1-5 Chapters.
- Major Attributes are Abstract, All Chapters, Figures, Appendix, References.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦4,500
1.1 Background of the study
The concept of taxation has been a concern of global significance as it affects every economy irrespective of national differences (Oboh etal., 2012). According to Omotoso (2001), in his definition of the modern taxes, defined tax as a compulsory charge imposed by a public authority on the income of individuals and companies as stipulated by the government decrees, acts or cases laws irrespective of the exact amount of services rendered to the payer in return. A more recent and comprehensive definition was given by Dr. Ekenze Oliver of Buitas Consultancy to the effect that tax is: “a compulsory levy imposed by an organization or Government on its member citizens, for the sole purpose of providing common goods and services for the benefit of all members”. He continued: “tax is designed to raise revenue required for the expenditure authorized in a government budget expectation. It is also a veritable instrument of promoting social and economic justice and equality amongst citizens of a state or members of an organization”. As could be gleaned from the above definitions, a tax is not therefore a voluntary payment; it is a compulsory pecuniary burden placed upon the subjects of a given country to support the people. Thus, taxes constitute the principal source of government revenue and the beauty of any government is for its citizen to voluntarily execute their tax obligations without much coercion and harassment. The greatest puzzle facing the Nigerian tax system is the threat of tax evasion and tax avoidance. It is widely believed that there is a substantial difference between estimated revenue from taxation every year and what is actually collected.
Tax evasion is a major problem plaguing many emerging economies across the globe and Nigeria situation seems unique when viewed against the scale of corrupt practices evident in the country. Under the direct personal taxation as practiced in Nigeria, the major problem lies in the collection of the taxes especially from the self-employed such as the businessmen, contractors, professional practitioners like lawyers, doctors, accountants, architects and traders in shops among others (Kiabel and Nwokah, 2009). As observed by Ayua (1999) cited in Kiabel and Nwokah (2009) these persons blatantly refuse to pay tax by reporting losses every year. Ayua (1999) further asserts that many of these professionals live a lifestyle inconsistent with reported income, which is usually unrealistically low for the nature of their businesses. The only categories of individuals who fulfill their tax obligation in Nigeria are civil servants and other salaried workers.
1.2 Statement of the problem
Tax evasion in Nigeria has been a cause for a serious concern; this is because it has led to the depletion in the internally generated revenue which has by extension adversely affected our economic growth and development.
1.3 Objectives of the study
The following are the aims and objectives of this study
To examine the major causes of tax evasion in Nigeria.
To examine the relationship between tax evasion penalty and tax evasion in Nigeria.
To examine the relationship between high tax rate and tax evasion in Nigeria.
To know if many business owners pay tax.
1.4 Research questions
What are the major causes of tax evasion in Nigeria?
What is the relationship between tax evasion penalty and tax evasion in Nigeria?
What is the relationship between high tax rate and tax evasion in Nigeria?
Do many Nigerian business owners pay tax?
1.5 Research hypotheses
Ho: There is no significant relationship between high tax rates and tax evasion in Nigeria
Hi:There is no significant relationship between high tax rates and tax evasion in Nigeria
Ho: There is no significant relationship between weak penalties and tax evasion in Nigeria.
Hi:There is no significant relationship between weak penalties and tax evasion in Nigeria.
1.5 Significance of the study
This study would be important to tax authorities in Nigeria as it would unravel the main causes of tax evasion in Nigeria with a view to creating tax policies that would encourage more people to pay tax.
1.7 Scope/Limitations of the study
This study on causes of tax evasion in Nigeria with Ikeja LGA in Lagos state serving as the case study
Limitations of study
- Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.8 Definition of terms
Tax:A compulsory contribution to state revenue, levied by the government on workers’ income and business profits, or added to the cost of some goods, services, and transactions.
Evasion:To escape or avoid (someone or something), especially by guile or trickery.
Revenue:The income generated from sale of goodsor services, or any other use of capital or assets, associated with the main operations of an organization before any costs or expenses are deducted.
You either get what you want or your money back. T&C Apply
You can find more project topics easily, just search
SIMILAR ACCOUNTING FINAL YEAR PROJECT RESEARCH TOPICS
1. THE IMPACT OF TAXATION ON INVESTMENT DECISION OF LIMITED LIABILITY COMPANIES (A STUDY OF NIGERIAN BOTTLING PLC)» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY The Institute of Chartered Accountants of Nigeria (2006) and the Chartered Institute of Taxation ...Continue Reading »
» CHAPTER ONE 1.0 INTRODUCTION/BACKGROUND No one question has received attention by businesses, government, politicians and people in general in the pas...Continue Reading »
» Abstract Tourist destinations with better diverse attractions have become more important than individual attractions due to better highways over the p...Continue Reading »
4. ACCESSIBILITY OF CREDIT FACILITY FROM FINANCIAL INSTITUTIONS BY SMALL AND MEDIUM SCALE ENTERPRISES: EVIDENCE FROM NIGERIA» Abstract This study tries to look at the accessibility of credit facility from financial institutions by small and Medium Scale Enterprises: Evidence ...Continue Reading »
5. THE ROLE OF EXTERNAL AUDITORS ON FINANCIAL ACCOUNTABILITY OF MANAGERS IN NIGERIA ORGANIZATIONS (A CASE STUDY OF UNION BANK OF NIGERIA PLC. AKWA BRANCH...» ABSTRACT This study is aimed at finding and expressing the Roles of the External Auditors on financial accountability of managers in Nigeria organizat...Continue Reading »
6. ASSESSMENT OF THE EFFECTIVENESS OF ACCOUNTING INFORMATION AS A TOOL FOR MANAGEMENT DECISION (A CASE STUDY OF PZ CALABAR)» The effectiveness of accounting information as a tool for management decision cannot be over emphasized. Accounting keeps the financial score for a bu...Continue Reading »
7. ELECTORAL LAWS AND CREDIBLE ELECTIONS IN NIGERIA: AN APPRAISAL OF 2010 ELECTORAL ACT ON 2011 AND 2015 GENERAL ELECTIONS» ABSTRACT Towards the end of 1990, international dynamics, pressures and persuasion combined to move Nigeria towards the embrace of a political system ...Continue Reading »
8. THE IMPACT OF CO-OPERATIVE SOCIETIES ON LOCAL COMMUNITY DEVELOPMENT IN NIGERIA (A CASE STUDY OF SAPELE DELTA STATE)» CHAPTER ONE 1.1 INTRODUCTION For effective Local Community Development in Nigeria, various Successive governments have embarked on several programme s...Continue Reading »
» PREFACE This study was done to determine the roles of commercial banks in financing the agricultural sector in Enugu State. The objectives were specif...Continue Reading »
» CHAPTER ONE INTRODUCTION 1.0 INTRODUCTION The Capital Market exists to provide long term capital to both government and co operate bodies for incentiv...Continue Reading »