Accounting and the Social Implications of Tax Avoidance and Evasion in the Nigerian Economy

Reference code: C074

ABSTRACT

This research project was aimed at investigating the accounting and social implications of tax avoidance and tax evasion in the economy. In order to achieve the objectives of the study, three hypotheses were formulated and data collected through the issue of one hundred and fifty questionnaires to respondents who were chosen through random sampling. data collected was analyzed using Pearson product moment coefficient of correlation. the data analyses showed that: Tax avoidance has a negative and significant correlation with the performance of the economy. Findings also showed that tax evasion has a negative and significant correlation. Finally, our findings showed that there is a positive but statistically insignificant correlation between tax avoidance/evasion and the role of accounting/ accountants. Given our findings, we concluded that tax avoidance is a serious social and economic malaise. We also conclude that tax evasion has debilitating effect on the economy by not only reducing the funds in government coffers, it also reduces the ability of the government to embark on developmental projects. Finally, we conclude that accounting and accountants play a role in tax avoidance and tax evasion albeit a minor role. On the basis of our findings, we make the following recommendations: The government should find a proactive way of solve the problem tax avoidance and tax evasion. This could be in terms of giving incentives to tax payers to encourage them to pay their taxes duly. We also recommend that the government institute stiffer punishments for tax defaulters and also ensure that such punishment is strictly and publicly meted out to offenders in order to serve as deterrent to intending and potential tax defaulters. Finally, we recommend that the government should embark on public enlightenment campaigns to educate the populace of the benefits and consequences of not paying their tax or evading to pay their taxes.

BACKGROUND TO THE STUDY

............ Tax payment is a demonstration of such a desire. The payment of tax is a civic duty and an imposed contribution by government on her subjects and companies to enable her finance or run public utilities and perform other social responsibilities. Taxes, thus, constitutes the principal source of government revenue. However, one of the greatest problems facing Nigerian Tax System as well as Africa is the problem of tax evasion and tax avoidance. While tax evasion is the willful and deliberate violation of the law in order to escape payment of tax which is unquestionably imposed by law of the tax jurisdiction, tax avoidance is the active means by which the taxpayer seeks to reduce or remove altogether his liability to tax without actually breaking the law.

These “Twin devils” have created a great gulf between actual and potential revenue. The government has for the umpteenth time complained of the widespread incidence of tax avoidance and evasion in the state as companies and other taxable persons employ various tax avoidance devices to escape or minimize their taxes or deliberately employ fraudulent ways and means of evading tax altogether sometimes with the active connivance of the tax officials. 

As pointed out by Rynoids (1963), since tax is a principal source of government revenue, if persons are able to escape by legal or illegal means the tax to which they should logically be subject under the general scope of the tax, the theoretical equity of the tax to a large measure is lost. Tax evasion and avoidance no doubt deny any government the tax revenue due to her, which results in a gap between the potential and actual tax collections. There is a clear cut difference between tax avoidance and tax evasion. One is legally accepted and the other is an offense ...........

FOR ACCESS TO THE FULL PROJECT WORK, USE THE ORDER NOW! BUTTON BELOW

TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION
1.10 BACKGROUND OF THE STUDY
1.11 STATEMENT OF RESEARCH PROBLEM
1.12 PURPOSE OF THE STUDY
1.13 STATEMENT OF RESEARCH QUESTION
1.14 RESEARCH HYPOTHESES
1.15 SIGNIFICANCE OF THE STUDY
1.16 SCOPE AND LIMITATION OF STUDY
1.17 ORGANIZATION OF STUDY
1.18 DEFINITION OF TERMS

CHAPTER TWO: REVIEW OF RELEVANT LITERATURE
2.0 INTRODUCTION
2.1 THEORETICAL FRAMEWORK
2.2 CONCEPTUAL FRAMEWORK
2.3 REVIEW OF RELEVANT EMPIRICAL LITERATURE

CHAPTER THREE: RESEARCH METHODOLOGY
3.0 INTRODUCTION
3.1. RESEARCH DESIGN
3.2 RESEARCH POPULATION
3.3 SAMPLE SIZE DETERMINATION
3.4. DATA COLLECTION TECHNIQUES
3.4.1.  PRIMARY SOURCES OF DATA
3.4.2. SECONDARY SOURCES OF DATA
3.5.   DESIGN AND ADMINISTRATION OF QUESTIONNAIRE
3.6 DATA ANALYSIS TECHNIQUE

CHAPTER FOUR: RESULTS AND DISCUSSION
4.0 INTRODUCTION
4.1 DEMOGRAPHIC ANALYSIS
4.2 DESCRIPTIVE ANALYSIS
4.3 HYPOTHESIS TESTING

CHAPTER FIVE
SUMMARY CONCLUSIONS AND RECOMMENDATIONS
5.1 SUMMARY FINDINGS
5.2 CONCLUSIONS
5.3 RECOMMENDATIONS
BIBLIOGRAPHY


Reference code: C074

Reference code: C074

Click Here to Order

See More Project Topics