ORDU, Chile Umezurike
Department of Accounting
Rivers state university.
zurikings@gmail,com/ chile.ordu@ust.edu.ng
08179720250.
OGBONNA, Felix Ibezim.
Department of Accounting
Rivers state university
Felix.ogbonna@ust.edu,ng
ABSTRACT
The study south to ascertain the relationship between tax evasion and tax revenue, evidence from federal
inland revenue service, Nigeria. Cross-sectional survey research design was adopted 191 respondents
were drawn from a population of 360 revenue employees across the eighteen (18) tax offices in Federal
inland revenue service, Nigeria using Taro Yamane’s formula for sample size determination. The
researcher collected data with a five-point Likert scale structured questionnaire. The questionnaire was
validated via face validity, content validity and construct validity while Cronbach alphas was used
collected was analyzed using inferential statistical tool, precisely Pearson product moment coefficient of
correlation which was used to test the stated hypotheses. These analyses were conducted using a computer
software package called statistical package for social sciences (SPSS) version 20.0. The result of the
findings revealed that tax evasion has a significant relationship with personal income tax and capital gains
tax. Based on empirical findings the researcher then concluded that tax evasion leads to tax revenue. The
study recommends amongst other that administrators of Federal Inland Revenue Service, Nigeria should
implement revenue policies that will discourage tax evasion because its discouragement leads to capital
gains tax.
Keywords: Tax Evasion, Personal Income Tax, Capital Gains Tax, Tax Revenue, Federal Inland Revenue
Service.