THE CAUSES AND EFFECT OF TAX EVASION ON THE INFRASTRUCTURAL DEVELOPMENT
ABSTRACT
Sustainable infrastructural development as a key ingredient for sustained economic growth has thus far received poor attention in Ado-Odo Ota local government area. The intense shortage of infrastructure constitutes a huge threat to survival in the study area. Despite the efforts made to enhance this “Social Overhead Capital” it still currently does not meet the requirement of economic development. The study emphasizes on the extent the tax irregularities hinder sustainable infrastructural development, the short and long-run effects and the possible causes of tax evasion and avoidance, drawbacks of tax revenue, in the study area. The opinions of the population of study comprising tax payers and authorities were not left out as a structured questionnaire was used to elicit the opinions of seventy (70) respondents in the study area, after then analyzed using the simple percentage method and the formulated hypotheses were later on tested using the chi-square goodness of fit technique at 0.05 level of significance. After a statistical analysis of results, it was concluded amongst others that the practice of tax evasion and avoidance has negative effects only, on sustainable infrastructural development ranging from short to long-run effects. A lot still needs to be harnessed towards improving the quality and condition of infrastructures. It was recommended amongst others that we should always pay our tax correctly and as at when due because greediness and selfishness constitutes one of the major causes of tax evasion and avoidance on the part of the tax payers.
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