Tax evasion is an illegal evasion of taxes by individuals, corporations and trusts. It often entails taxpayers deliberately misrepresenting the true state of their affairs to the tax authorities to reduce their tax li ability and includes dishonest tax reporting, such as declaring less income, profit or gains than the amounts actually earned, or overstating deductions. Tax evasion is an activity commonly associated with the informal economy. One measure of the extent of tax evasion is the amount of unreported income, which is the difference between the amount of income that should be reported to the tax authorities and the actual amount reported. Both tax evasion can be viewed as forms of tax noncompliance, as they describe e a range of activities that intend to subvert a state’s tax system, although such classification of tax evasion is not indisputable, given that avoidance is lawful, within self-creating systems. (Michael & Wenzel.,2002). Globally, government is saddled with the responsibility of providing some basic infrastructures for her citizens. Among these are the provisions of Schools, Hospital s. construction Roads, Bridges, Railway lines, Airports and seaports. More is the security of the life and properties of the citizens in the country against foreign or local aggression. According to Abdul fattah, et al (2010) “Most south east governors are spending fortune to keep the Police and other security agencies and the same time to provide social amenities for it citizen s”. The stabilization of the economy, the redistribution of income and the provision of services in the form of public goods are among other functions and obligations that government owe her citizens. Miller and Oats (200 9) noted that due to the inefficiency of the private market, the provision of public goods such as security of life and property which the public might not be prepared to pay for directly, are left in the hands of the government rather than the private market. James and Nobes (2008) also observed that even without payment, the consumption of pure public goods cannot be to the total exclusion or in isolation certain in individual. Government therefore, makes it free for all and sundry.  Avery good example is in the area of security e.g. Police, Arm Force etc.

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