CAUSES AND IMPLICATION OF TAX EVASION ON ENUGU STATE GOVERNMENT REVENUE GENERATION

Abstract

Research has it that taxable adults in Enugu state evade tax payment, thereby depriving government of revenue. For this reason, this study focused on tax evasion; causes and implication on Enugu state government revenues. In the light of this study, three specific objectives, three research questions and two hypotheses were listed, asked and tested respectively. The study adopted survey research design with a population of 3070 and sample size of 354. The sample size was derived statistically by using Taro Yamane statistical technique. Simple random sampling, techniques was adopted and questionnaire were used for data collection. Hypothesis were tested using chi-square (X2) statistical tool at α=0.05 level of significance. One of the findings shows that tax evasion reduces revenue generated by the state government which leads to debt accumulation as well as budget deficit. Also, one of the implications of the finding has it that tax evasion has adverse effect on Enugu State Internally generated Revenue. Hence, the researcher recommended that government and other related agencies should promote the effort made towards preventing tax evasions in the States so as to enhance increase in government internally generated revenue. Keywords: Tax, tax evasion, Revenue, debt accumulation and budget deficit.