Abstract

Taxation is viewed in many developed countries of the world as both a way of life and a necessary civic responsibility which involves the generation of revenue for a common purpose. Unfortunately, in Nigeria, a large majority of people view tax as an instrument of oppression and dispossession by the government. Whereas the resistance in the colonial era may have been part of the struggle against British rule, in more contemporary times, average Nigerians resist tax payments out of the plain realization that taxes are invariably stolen by state officials. The people however cannot be blamed for this view because taxation in Nigeria has its roots in the colonial days when local agents of the colonial government forced the people to pay all forms of obnoxious taxes irrespective of their means. No one likes to pay taxes, even though tax payment is inevitable for the provision of social welfare, hence individuals and companies want to reduce their tax liabilities and they try to do this either legally, by tax avoidance or illegally by tax evasion. As such, one of the problems hindering the effective administration, collection and assessment of tax in Nigeria today is tax evasion. Sadly enough, it is a problem which we have always being faced with. This work will examine the concept of tax evasion, how it is perpetuated, penalties provided by the law as well as the measures put in place to combat the problem of tax evasion in Nigeria. The efficacy of these measures will be further examined and the challenges related to these measures. More importantly, the paper will proffer requisite panacea to the problems associated with tax evasion in Nigeria.