An Evaluation of Tax Evasion and Its Effect on Government Revenue: A Case Study of Lagos State Inland Revenue Service (LIRS)
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
Taxation is a fundamental source of government revenue and a tool for economic development. In Nigeria, tax revenue supports infrastructure development, public services, and economic growth. However, tax evasion significantly undermines the government's ability to generate adequate revenue. Lagos State, as Nigeria's economic hub, relies heavily on its Inland Revenue Service (LIRS) for tax collection. Despite its strategic importance, tax evasion remains a persistent challenge in Lagos State.
Tax evasion occurs when individuals or businesses deliberately underreport or fail to pay their tax liabilities, leading to significant revenue losses. The Lagos State government has implemented various measures to combat tax evasion, including automation of tax processes, public awareness campaigns, and stricter enforcement mechanisms (Adeniran & Oyeleke, 2024). However, the persistence of tax evasion raises questions about the effectiveness of these strategies.
This study examines the impact of tax evasion on government revenue in Lagos State, focusing on the operations of LIRS. By identifying the root causes and consequences of tax evasion, the study aims to provide insights into enhancing tax compliance and revenue generation.
Statement of the Problem
Tax evasion poses a significant threat to government revenue, particularly in Lagos State, where the LIRS is tasked with collecting taxes to fund public services and infrastructure. Despite reforms and technological advancements, tax evasion continues to undermine revenue generation.
The problem is exacerbated by factors such as inadequate enforcement, a lack of taxpayer awareness, and the informal nature of many businesses in Lagos State. These challenges not only reduce revenue but also hinder the government's ability to achieve its developmental goals (Okafor & Nwachukwu, 2023). This study seeks to evaluate the effect of tax evasion on government revenue, using LIRS as a case study, and proposes strategies to address the issue.
Objectives of the Study
-
To assess the impact of tax evasion on government revenue collection in Lagos State.
-
To identify the causes of tax evasion among taxpayers in Lagos State.
-
To evaluate the effectiveness of LIRS strategies in curbing tax evasion.
Research Questions
-
How does tax evasion impact government revenue in Lagos State?
-
What are the main causes of tax evasion in Lagos State?
-
How effective are the measures implemented by LIRS in reducing tax evasion?
Research Hypotheses
-
Tax evasion significantly reduces government revenue in Lagos State.
-
Factors such as inadequate enforcement and lack of taxpayer education contribute to tax evasion.
-
Strategies implemented by LIRS have a significant impact on reducing tax evasion.
Scope and Limitations of the Study
The study focuses on the operations of LIRS in Lagos State, examining the impact of tax evasion on revenue generation from 2015 to 2025. Data is drawn from LIRS reports, taxpayer surveys, and expert interviews. Limitations include potential reluctance of taxpayers to disclose accurate information and restricted access to detailed internal LIRS data.
Definition of Terms
-
Tax Evasion: The illegal practice of avoiding tax payment through fraudulent means, such as underreporting income or inflating deductions.
-
Government Revenue: Funds collected by the government from taxes, fees, and other sources to finance public services.
-
LIRS (Lagos State Inland Revenue Service): The government agency responsible for tax collection in Lagos State.
Related Project Materials
An Appraisal of Rural Roads Development Policies and Their Impact on Agricultural Productivity in Dala Local Government, Kano State
Chapter One: Introduction
1.1 Background of the Study
Agriculture is a significant driver of the Nigerian economy, and its deve...
An examination of the role of strategic communication in crisis management: A case study of media firms in Jigawa State.
Background of the Study: Strategic communication is an essential aspect of crisis management, particularly for media firms that operate in environm...
IMPACT OF SOCIAL CAPITAL ON PERFORMANCE OF HOSPITALITY INDUSTRY IN MINNA METROPOLIS, NIGER STATE, NIGERIA
ABSTRACT
Hospitality industry, especially hotel business is declining in Nigeria due to their inability to infuse the culture of social r...
An Evaluation of Loan Default Rates in Retail Banking: A Case Study of Ecobank, Abia State
Background of the Study
Loan default rates are a critical indicator of financial health in retail banking, reflecting the e...
PERFORMANCE OF BROILER CHICKENS FED BITTER LEAF AND MORINGA LEAF MEAL BASED DIETS UNDER SINGLE PHASE FEEDING REGIME
ABSTRACT
The effect of feeding bitter leaf and moringa leaf meals based diets under single phase feed regime on growth performance, nutri...
Corporate Communication and Crisis Prevention in the Oil and Gas Sector: A Study of Damaturu Local Government Area, Yobe State
Chapter One: Introduction
1.1 Background of the Study
The oil and gas sector is a critical part of Nigeria’s economy, but...
INDECENT DRESSING AMONG UNDERGRADUATES: A CASE STUDY OF THE COLLEGE OF EDUCATION, EKIADOLOR, EDO STATE
ABSTRACT
Indecent dressing like other social vices has eaten deep into the lives of the youths, especia...
The impact of fast-food consumption on nutritional health in Sokoto State
Background of the Study
Fast-food consumption has risen sharply in many developing regions, including Sokoto State, driven by urbanizatio...
An investigation of the influence of hip-hop culture on traditional music genres in Ika North-East Local Government, Delta State
Background of the Study
Contemporary hip-hop culture has increasingly influenced traditional music genres in Ika North-Eas...
The effect of Islamic institutions on female educational advancement in Offa Local Government Area, Kwara State
Background of the study
Islamic institutions in Nigeria have played a dual role in education, promoting religious studies...
