ABSTRACT

This research work is set to identify the effects of tax evasion, tax avoidance on the Nigerian Economy with particular reference to the Lagos State Internal Revenue Services.

This project work is designated to find out the factors responsible for tax evasion in Nigerian Economy. The deviation effects and specifically considers different way in which it could be reduced and controlled in order to meet the present day challenges.

In addition, the study is aimed at revealing the economic and socio­political effects of taxation in Lagos State and highlight to all beneficiaries of this research work the effect of tax evasion in the Nigeria Economy. To proffer possible solutions to this menace, the civil servants and business organizations should religiously discuss their income.

CHAPTER ONE

1.1    HISTORICAL BACKGROUND OF THE STUDY

This paper examined tax policy in Nigeria. It traced the history of tax in Nigeria and the implementation of tax policy in Nigeria. The paper argued that tax policy has been ineffective over the years. It found that the federal government has been working towards tax reforms. The paper highlighted the flaws in the tax reforms and made recommendations for effective tax system in Nigeria.

1.2    INTRODUCTION

A tax administration represents key resource allocator between the public and private sectors in a country, it is usually imposed on individuals and entity that make up a country. The funds provided by tax are used by the states to support certain states obligations such as Education system, Health care system, Pensions .for the elderly, Unemployment benefits, Public transportation, etc. A nation tax system is often a reflection of its communal values or the values of those in power. To create the system of taxation, a nation must make choices regarding the distribution of the tax burden about who will pay taxes, how much they will pay and how the taxes collected will be spent.

In Nigeria, the taxation system dates back to 1904 when the personal income tax was introduced m northern part of Nigeria before the unification of the country by the colonial masters. It was later implemented through the native revenue ordinances to the western and eastern regions m 1917 and 1928 respectively. Among other amendments in the 1930's, it was later incorporated into, direct taxation ordinances no. 4 of 1940 since then different governments have continued to try to improve on Nigeria taxation system. The general opinion among scholars is that Nigeria's fiscal regime is characterized by unnecessary complex, distortion largely inequitable taxation laws that have limited application in the formal sector that dominates the economy.

b)    Observation from the Federal Board of Inland Revenue.

(c)     Survey from the Joint Tax Board.

1.11 ORGANISATION OF THE STUDY

The research is made up of five different sections or chapters which are as follows:

Chapter one consists of the historical background. of the study, introduction, statement of the problem, research objectives, research questions, research hypothesis, models specification, significance of the study, scope and limitation of the study, method of data collection, organization of the study and contribution to knowledge.

Chapter two also consists of the literature review and historical background of the study.

Chapter three consists of the research methodology and method of data collection.

Chapter four consists of the method of data analysis and data analysis; interpretation of the results while,

Chapter five consists of the summary, conclusion, discoveries/findings, limitation and recommendations, then the bibliography.

1.12 CONTRIBUTION TO KNOWLEDGE

Government should have the will to impose penalty on any person who do not comply with tax law. To this end, revenue courts should be established to adjudicate matters on tax evasion as quickly as possible. There should be attractive conditions of services and adequate tax personnel in terms of quality and staff training should be systematic and on a continuous basis, while adequate accommodation, furniture equipment etc. should be provided.

REFERENCES

Ilemobayo, A. S. (1997):                                      Public finance in Nigeria

Adejuwon, J.A. (1998):                              Analysis of Taxation Principles for Nigerian Students

Seyi, O. (1998):                                          Element of Tax Management and Practice in Nigeria

Ola, C. S. (1999):                                       Income Tax Law for Corporate and Incorporate Bodies in Nigeria

Anyanwuocha, R.A.I. (1999):                    Fundamental of Economics for Senior Secondary Schools.

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