EFFECT OF TAX EVASION ON REVENUE GENERATION OF KADUNA STATE, A STUDY OF KADUNA STATE INTERNAL REVENUIE SERVICE

Abstract

This study is design to identify the effect of tax evasion on revenue generation in Kaduna State.  Tax evasion is one of the major social problems hindering revenue generation in developing  state and destroying the existing wellbeing of the populace such as education, health care  facilities and water supply in the state. The research objective focused on examining the effect  and evaluating the extent to which tax evasion affect revenue generation in Kaduna State  internal revenue service (KADIRS). The population for the study is 413 comprises the entire staff  of Kaduna State internal revenue service and the sample size for the study was 201 arrived at,  using multistage sample techniques. Questionnaire was used to collect data from a sampled  respondents who were randomly selected across Kaduna internal revenue service while  interview was conducted with 7 (seven) managers in revenue operation department in Kaduna  State internal revenue service. Data collected were analysed using mixed method research,  which involved the use of descriptive statistics and inferential statistics tools with the aid of  SPSS, v.25, and the hypothesis was tested using multiple regression. The result found that  underreporting of income, underpaying of tax and non filing of tax return form significant affect  revenue generation of the state. Hence it was recommended that tax compliance enforcement law  should assume the same consideration to all taxpayers including cooperate bodies or entities  and different agencies. Also tax officials must come together and share information to curtail the  problem of tax evasion in order to increase revenue to finance expenditure in the state.