Examining the Factors Responsible for the Persistent Tax Evasion in Nigeria: The Case of Akwa Ibom State, Nigeria

Abstract

This study was carried out to address the problem of persistent tax evasion in the Nigerian economy. The aim was to examine the factors responsible for continuous and increasing activities of tax evaders in Nigeria with Akwa Ibom State as a case study. The study adopted a survey and descriptive research design. Two hundred and eighty copies of structured questionnaire were distributed to respondents, out of which 145 valid copies of the question were received. The data were analyzed using simple percentages. This research design and method adopted was because of the main objectives of the study. From the data analysis, it becomes apparent that the major factor responsible for tax evasion in Nigeria is more of administrative than attitudinal. Specifically, the greater percentage of the respondents (86%) attributes this to lack of qualified personnel to enforce tax laws. Other factors identified include poor staff morale, dearth of infrastructural facilities to effectively carryout tax administrative functions. High tax rates (85%), misuse or mismanagement of public fund and tax revenues (88%) as well as corruption in the Nigerian tax system (99%). The study concludes that there is a relationship between ineffective and corrupt tax administration and tax evasion in Nigeria. The study recommends various measures towards curbing the problem of tax evasion in Akea Ibom State, Nigeria.