Tax evasion determinants: Evidence from Nigeria

Tax evasion is a serious problem that causes government of different nations lose revenues at various levels. The main aim of this study is to determine the factors influencing tax evasion among taxpayers from the Nigerian perspective. In order to achieve this goal, the study employed a survey method, where Gombe State taxpayers had been the scope and selected respondents of this study. A self-administered questionnaire was deployed as a method of data collection. The total number of the state taxpayers was 26,313, out of which 379 were randomly selected as the sample size. Multiple regression analysis was used in analyzing the data collected to determine the correlation between the variables. The finding of the study indicates that, the tax system, income level and
education level have significant positive relationship with tax evasion. On the other hand, tax rate and corruption indicates positive relationship but are not significantly correlated with tax evasion. Therefore, the study recommends that government should improve the tax system through amending and adjusting tax laws and policies that would encourage
people to comply voluntarily. Similarly, enhancing the tax education will also improve
the compliance behavior. Finally, the study suggests that proper check and balance method and effective tax reform will yield more compliance at different level.