EFFECT OF TAX EVASION AND TAX AVOIDANCE ON ECONOMIC DEVELOPMENT
CHAPTER ONE INTRODUCTION 1.0 BACKGROUND TO THE STUDY Tax is of phenomenal importance to the government because it is its main source of revenue. Government expenditure is a major component of the Keynesian model of income determination and it serves as an injection into the economy’s model of income determination. The subSaharan Africa region faces a number of issues as a result of the global economic slump.With oil and commodity prices plummeting, subSaharan African economies must rethink their investment and business regulation policies, fearing that the decade of strong growth may be coming to an end. Nigerian finance experts and tax stakeholders have commented that the predicted budget deficits are unsustainable and that the federal government has to address the budget gap through reduced spending and/or increased income as a result of falling earnings from worldwide crude oil sales. One strategy for the Nigerian government to raise tax revenue is to cut down on tax evasion. As a result, developing policies and measures to combat tax evasion has become a top concern for ...
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