The Effects of Tax Evasion and Avoidance on Government Internally Generated Revenue in Borno State

Abstract

Tax evasion and avoidance exist in all societies and cannot be completely eliminated but can be drastically reduced. This study examined the extent to which tax evasion and avoidance affect government internally generated revenue and the extent to which tax evasion and avoidance affect Borno State Government. A cross-sectional survey design was employed. Data were collected from primary source through administration of questionnaires to 86 respondents drawn from a population of 109 tax officials selected using simple random sampling technique and 76 returned copies were analyzed using percentages, mean and standard deviation. Hypotheses were tested using Chi-Square with the aid of SPSS version 20. This study revealed significant effect of tax evasion and avoidance on internally generated revenue in the state. This study recommends the government to have political will to implement tax policies, recruit qualified staff, enforce tax laws, provide comprehensive database of taxpayers through computers and internet facilities. The implication of this study is that evasion and avoidance thrive where tax administrative machinery inefficiency exists which leads to abandoned projects and programs and if overhauled, it will be reduced to the barest minimum in the state