DETERMINANTS OF TAX EVASION IN EDO STATE A CASE STUDY OF OREDO, EGOR AND IKPOBA-OKHA LOCAL GOVERNMENT AREAS OF EDO STATE

ABSTRACT

Tax evasion is among the major societal problems inhibiting development in developing countries. Literature exposes that tax evasion also denote some of the difficulties in raising revenue in Nigeria. This study assessed the determinants of tax evasion in Edo state using selected local government area (Oredo, Egor, and Ikpoba-Okha). The study was conducted through a survey research design. A questionnaire was used to gather primary data from 154 randomly selected public and private sector personal taxpayers in the selected local government area of Edo state. The results of the analysis show that tax system, tax rate, source and income level, corruption rate, relationship between tax authorities and taxpayers as well as multiple taxation have positive and significant relationship with tax evasion. The study recommends necessary measures that should be taken by the tax authorities to improve tax compliance and reduce tax evasion. It also proposed that campaign and public enlightenment on collection and use of tax by government should be undertaken.