AN EVALUATION OF TAX AVOIDANCE AND EVASION ON INTERNALLY GENERATED REVENUE OF SUBNATIONAL GOVERNMENT: EMPIRICAL EVIDENCE FROM JIGAWA STATE 2015-2024
Sani Damamisau Mohammed , Muhammad Hashim , Mustapha Shitu Hassan , Aminu Musa , Maryam Mustapha , Saadatu Baba Gimba and Hauwa’u Eleojo Jibrin
Volume 5 Issue 2
Abstract
Internally Generated Revenue (IGR) is playing significant role in supplementing federal allocations and contributing to disposable funds available to state governments in Nigeria. However, tax non-compliance in form of tax avoidance and evasion are practices that are reducing the potential revenue that state governments can mobilize to fund essential public services. The aim of this study is to assess the existence of tax avoidance and evasion and their impact on the IGR collected by Jigawa state 2015-2024. To achieve the aim of the study, quantitative secondary data on budgeted and actual IGR from all sources were collected from the annual reports and accounts of the state auditor-general. Economic theory of tax compliance which posit that taxpayers act rationally when deciding whether to evade taxes or comply guided the conduct of this study. Collected data was analyzed by simple descriptive statistical tools of tables, charts, and percentages. Results from the study on the overall revealed existence of tax avoidance and evasion on the IGR of Jigawa state as the incidences occurred in six out of the ten years covered by the study. Similarly, the result revealed negative impact on IGR of the state over the period of the study. The policy implication is that tax authorities should strengthen tax administration to ensure consistency in collection as fluctuations in meeting budgeted targets over the period of the study may be implying loopholes in collection efforts. Key Words: Internally Generated Revenue, Tax Avoidance and Evasion, Theory of Planned Behavior, Tax Administration
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