Abstract
This study examined the impact of tax evasion and avoidance on the Nigerian economy. This study was guided by the following objectives; Ascertain the impact of tax evasion and avoidance on the Nigerian economy, Determine the relationship between tax evasion and avoidance and government revenue generated, Examine the impact of inadequate tax administration on the Nigerian economy, Identify if inadequate tax legislation causes tax evasion and avoidance.
The study employed the descriptive and explanatory design; questionnaires which were administered to 100 FIRS staff members in Benin city,Edo State in addition to the library research which were applied in order to collect the required data, the primary data gathered were analyzed using the spss statistical tool which was presented in tables and percentages.
The findings of the study revealed that tax evasion and avoidance has a significant impact on the Nigerian economy. Based on the research findings,the study recommends that addressing these challenges requires a holistic approach that integrates policy reforms, institutional strengthening, and behavioral interventions. Comprehensive tax reforms should be implemented to simplify tax codes, close loopholes, and enhance transparency and accountability in tax administration processes with necessary but proportionate penalties in place for cases of non compliance.
