Tag Archives: Taxpayer

Strategy to close tax gaps created by tax avoidance and tax evasion in Nigeria: an overview (Published)

The increase in the tax avoidance and tax evasion among the taxpayers has become a subject of discourse among the tax authorities and other stakeholders across the globe.  Tax evasion and tax avoidance, a problem which seems to have defied solution, had been deviled the tax system right from colonial times. While some had blamed the situation on tax authorities for not living up to expectation with regards to tax administration, others attribute it to the unpatriotic attitude of taxpayer. In view of the above, this paper examines the strategy to close tax gaps created by tax avoidance and tax evasion. Contents analysis research design was adopted by reviewing the available literature in the field of this study. It was discovered that Voluntary Asset and Income Declaration Scheme, effective communication of tax benefits to the taxpayers enhance voluntary compliance with payment of tax by taxpayer. Equitable distribution of amenities without using sentiment ,religion, tribe among other things will also increase tax revenue while ,transparency and accountability, consistent updates to the taxpayer’s registry, equitable distribution of income and use electronic channels for simple transactions were also identified as part of strategies to close the gap created by tax avoidance and tax evasion.

Citation: Olufemi F. Oladejo  (2021) Strategy to close tax gaps created by tax avoidance and tax evasion in Nigeria: an overview, European Journal of Accounting, Auditing and Finance Research, Vol.9, No. 7, pp.55-63

Keywords: Nigeria voluntary compliance, Tax Evasion, Taxpayer, Voluntary Asset and Income Declaration Scheme, equitable distribution of income, tax administration, tax avoidance, tax revenue taxpayers’ registry

Impact of Taxpayer Identification Number on Revenue Generation in Ekiti State (Published)

This study examined the impact of taxpayer identification number on revenue generation in Ekiti state, over the period of 10 years covering 2006 to 2015. Specifically, the study examined the trend of internally generated revenue over the period covered and investigated the impact of full adoption of taxpayer identification number on the revenue generated in Ekiti state, using a single equation model in which revenue generation proxies by internally generated revenue (IGR) was made a function of full adoption of TIN as latent variable, alongside capital expenditure as a control variable. Ordinary least square regression estimation technique was used. The result revealed that full adoption of taxpayer identification number exerts a significant positive impact on internally generated revenue of the state, given a coefficient estimate and probability values of 5031.843 and 0.0182 respectively. It was concluded that full adoption of taxpayer identification number in Ekiti state has the capacity to spur revenue generation. Thus, it was recommended that government through the state internally generated revenue services should work out modalities necessary to ensure that all taxable persons and/or business entity collect an identification number so as to further maximize the positive impact of the TIN.

Keywords: Revenue Generation, Taxpayer, Taxpayer Identification Number (TIN)

THE DETERMINANTS OF TAX EVASION IN PAKISTAN-A CASE STUDY OF SOUTHERN PUNJAB (Published)

Every citizen is legally bound to pay tax to the government to enable to meet its expenditures to discharge its obligations regarding defense, education, public health, law and justice, infrastructure etc. In most of the countries, tax revenue is a major source of government income. Taxes also play a very important role in the economic development of a country. Tax evasion is concerned with all unlawful activities which are adopted by the taxpayers in order to escape from the payment of tax. The objective of this study is to probe the determinants (causes) of tax evasion in Pakistan from both tax payers and tax collectors point of view. In order to record the views of both tax payers and tax collectors the author has collected data from 150 respondents through two separate structured questionnaires. The data collected through this method has been analyzed through different statistical techniques such as arithmetic mean, percentages, standard deviation, t-tests, ANOVA etc. The results highlight six main cause of tax collection: unproductive expenditures / misuse of funds, anti-tax culture, corrupt tax administration, multiple & higher tax rates, complex tax system and amnesties and incentives for tax evaders. The author has also made certain recommendations to combat tax evasion problem and submitted suggestions to improve tax collection in order to ensure financial independence of Pakistan.

Keywords: Determinants, Pakistan, Tax Collector’s point of view, Tax Evasion, Taxpayer