INCOME TAX EVASION AND AVOIDANCE THEIR CAUSES AND REMEDIES NIGERIA
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INCOME TAX EVASION AND AVOIDANCE THEIR CAUSES AND REMEDIES NIGERIA
THE CAUSES AND REMEDIES OF INCOME TAX EVASION AND AVOIDANCE NIGERIA
Our country’s revenue generation is primarily based on tax revenue, which can be either direct or indirect.
This study focuses on the causes and solutions of tax evasion and avoidance in Nigeria. Having found the rate at which tax evaders and avoiders dodge or avoid tax, this piece of writing will also provide solutions on how to limit tax evaders’ and avoiders’ actions.
It is quite crucial for people who have struggled to differentiate or draw a clear line between tax evasion and avoidance.
This is because it clarified the full meaning of tax evasion and avoidance for the average person.
Some of the topics I examined in this study project included: the definition of tax, tax evasion and avoidance, the penalties for tax evaders and avoiders, the causes and remedies of income tax avoidance and avoidance, and many other intriguing issues that were not covered.
In fact, you will find the job extremely rewarding to complete.
CHAPTER ONE
INTRODUCTION
1.1 STATEMENT OF THE PROBLEM
A tax is a mandatory levy imposed by the government on the income of qualified citizens in a state where the government receives no direct benefit.
Revenue is the money that the government collects via taxes. In this context, tax evasion is a powerful weapon used to combat income production in our country.
Tax evasion is the deliberate attempt of a taxpayer not to pay tax, whereas avoidance is the endeavour of a taxpayer to lower his tax liability in order to pay as little tax as possible.
This move has an impact on revenue creation in Nigeria. It prevents the tax’s intended aims from being met. Despite all of the government’s attempts to combat the problem of tax evasion and avoidance,
there is still a slowing in the economy’s growth. Also reduced are capital expenditures, recurring expenditures, economic growth, monopolies, and national debt.
As a result, my primary goal is to identify the economic reasons of this problem. Again, to discover potential solutions to this vexing dilemma.
1.2 THE RATIONALE FOR THE STUDY
Given the pace at which people evade and avoid paying taxes, it is important to understand how this research will help to address the issue at hand.
Another reason why the study is needed now is to assist tax authorities in developing the appropriate tactics for collecting taxes in order to prevent the issue of tax evasion and avoidance.
Again, having seen that our country’s revenue generation is heavily reliant on taxes, and that without them, the country will be unable to meet its daily obligations, it is necessary to find a way to reduce the impact of tax evasion and avoidance on our revenue generation in the country.
Capital project setbacks owing to a lack of finances as a result of poor income generation from taxes and other sources are a problem that must be addressed effectively.
As a result, the subject of tax fraud and avoidance must be thoroughly investigated in order for the country to increase capital projects funded by tax revenues.
1.3 SIGNIFICANCE OF THE STUDY
Having observed the pace at which people evade and avoid paying taxes, as well as the detrimental effect it has on the country’s revenue generation, the researcher has proposed several viable remedies to this economic dilemma. This implies that the research will serve as a possible solution to the societal problem of tax evasion and avoidance.
Furthermore, tax authorities and officials would find this research satisfying because it graphically highlighted the many forms of tax evasion and avoidance, as well as the impact of such in the economy.
Finally, the research will be very useful to future researchers on tax evasion and avoidance in society.
1.4 DEFINITION OF TERMS
A tax is a mandatory levy levied by the government of a state on eligible people of that state.
TAX EVASION: A violation of tax law in which a taxable individual or company fails to pay tax owed to him.
TAX AVOIDANCE: The act of avoiding paying taxes without breaching the law.
REVENUE: Taxes collected by the government
INCOME TAX: This is a tax on one’s earnings.
COMPANY INCOME TAX: This is a tax charged on a company’s gross earnings. The bigger a company’s gross profit, the more the tax it pays.
TAX AUTHORITIES: The individual or group of people who are legally responsible for tax collection.
TAXATION CANNONS: These are the principles that control taxes.
TAXPAYER: A person who pays taxes.
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