THE IMPACT OF TAX EVASION AND TAX AVOIDANCE IN TARABA STATE BOARD OF INTERNAL REVENUE

ABSTRACT

The study investigated the “Impact of Tax Evasion and Tax Avoidance in Taraba State Board of Internal Revenue Service” The impact of tax evasion and avoidance in any organization or government is a critical area that needs to be properly and contentiously worked on. The design used in this study is the descriptive survey in which information is collected without changing the environment (i.e., nothing is manipulated). Sometimes these are referred to as “correlational” or “observational” studies. It employs ex-post factor design. It is designed essentially to investigate the impact of tax evasion and tax avoidance in Taraba state board of internal revenue and it involved surveys or interviews to collect the necessary information. Using service delivery as a dependent variable, levels of inflation recorded a significantly positive regression coefficient [B] of 0.624 (Table 8).  On the other hand, social infrastructure deficit showed a relatively significant regression coefficient with the highest coefficient value ([B] = 1.738). This result implies that, the impact of tax evasion and tax avoidance can always be felt in the poor deficit of social amenities and structures. The overriding objective of any tax system should be to achieve economic growth and development. As such, the system should allow for stimulation of the economy and not stifle growth. Thus, this study recommends that government policies and measures as it pertain fiscal policies in Taraba state, and should be streamlined to stimulate economic growth and development by ensuring that they are tailored towards growth of the economy.

TABLE OF CONTENTS

 

Title

Page

Title Page

Declaration

Certification

Acknowledgement

Table of Contents

Abstract

i

ii

iii

iv

v

vi

 

CHAPTER ONE

1

1.1

Introduction

1

1.2

Background of the Study

1

1.3

Statement of the Research Problem

6

1.4

Research Hypothesis

8

1.5

Research Questions

8

1.6

Research Objective

9

1.7

Significance of the Study

9

1.8

Scope and Limitation of the Study

11

1.9

Structure and Organization of the Study

12

1.10

Profile of the Board

14

1.11

Operational Definition of Terms

15

 

CHAPTER TWO

 

2.1

LITERATURE REVIEW

18

2.2

Introduction

18

2.3

Tax, Definition and Historical Background

20

2.3.1

Historical Background

22

2.3.2

Tax Evasion and Avoidance

23

2.3.3

Tax Avoidance

24

2.3.4

Distinction between Tax Evasion and Avoidance 

26

2.4

Impact and Effect of Taxation

27

2.5

Effects of Tax Invasion and Avoidance

28

2.6

Tax Offences and Penalties

30

2.7

Mechanism to Curb Tax Evasion

36

2.8

Theoretical Review

37

2.9

Empirical Review

40

 

CHAPTER THREE

 

3.1

Methodology

46

3.2

Research Design

46

3.3

Area of the Study

47

3.4

Population of Study

48

3.5

Sample and Sampling Technique

49

3.6

Instrument for Data Collection

49

3.7

Validation of Instrument

50

3.8

Reliability of the Instrument

51

3.9

Method of Data Collection

51

3.10

Method of Data Analysis

52

 

CHAPTER FOUR

 

4.1

Data Presentation and Analysis

53

4.2

Introduction

53

4.3

Personal Information

54

4.4

Research Questions

56

4.5

Research Hypotheses

65

 

CHAPTER FIVE

 

5.1

Summary, Conclusion And Recommendations

67

5.2

Summary

67

5.3

Conclusions

68

5.4

Recommendations

69

 

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