ABSTRACT

This study looks at the Nigeria personal income tax administration and the challenges and prospects assessing the Lagos Inland Revenue Service (LIRS) examine the possible causes of the inefficient administration of personal income tax in Lagos state; analyze the possible reasons why Lagos state citizens avoid personal income tax and; examine the possible reasons why Lagos State citizens evade personal income tax.

Data collection was out by distributing questionnaires in the urban area of the study. Purposive sampling method was used in distributing the questionnaire. The study made use of 100 Questionnaires containing 22 relevant questions. Descriptive statistics were used to analyze 100 usable responses.

The study found among other things that there is no significant cause of the inefficiencies of tax personnel in the administration of personal income tax in Lagos state; there are no significant reasons why Lagos State citizens avoid personal income tax; there are no significant reasons why Lagos state citizens evade personal income tax.

This paper therefore revealed that low income, fear of their tax being mismanaged,  lack of proper training and inefficiency on part of the tax administrators have not aided the cause of tax drive and revenue generation from Personal Income Tax in Lagos state.