Effect of tax avoidance and tax evasion on economic growth and development in nigeria (2006–2016)

This work evaluates the effect of tax avoidance and tax evasion on economic growth and development in Nigeria (2006–2016). It aimed to give a detailed examination of the effect of tax avoidance on the economic growth and development in Nigeria. The data gathered regressions model was employed to establish the relationship between dependent and independent variables. The study made use of economy approach in estimating the relationship between tax avoidance with economic growth and development in Nigeria. The study revealed that there is no significant relationship between economic growth and tax evasion and tax avoidance in Nigeria, the work also revealed that tax avoidance has no significant positive effect on economic growth. The study concluded that the application of modern equipped database of tax avoidance whose human resource practices would properly align to the used of international best practices would improve their revenue generation in Nigeria. The study among other things recommended that the federal government should have well equipped data base on all taxpayers in federal, state and local government in Nigeria, and that the federal government should set up a federal revenue court to look into cases of tax avoidance and evasion. Also the government should ensure that jurisdictions of those courts are extended to states and local governments, offender should also receive prompt prosecution of tax evaders.