Original Research Article | OPEN ACCESS
Personal Income Tax Evasion and Revenue of Informal Sector of the Northwestern States of Nigeria

Almustapha A. Aliyu1 Olarewaju Taophic Bakare2

Department of Accounting and Finance, Usmanu Danfodiyo University, Sokoto, Nigeria;

For correspondence:-  Almustapha Aliyu   Email: Mustaphaa101@gmail.com

Received: November 5, 2019        Accepted: December 21, 2019        Published: December 31, 2019

Citation: Aliyu AA.Bakare OT. Personal Income Tax Evasion and Revenue of Informal Sector of the Northwestern States of Nigeria. Account Tax Rev 2019; 3(4):99-109 doi:

© 2019 The authors.
This is an Open Access article that uses a funding model which does not charge readers or their institutions for access and distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0) and the Budapest Open Access Initiative (http://www.budapestopenaccessinitiative.org/read), which permit unrestricted use, distribution, and reproduction in any medium, provided the original work is properly credited..


In Nigeria, tax evasion is not only found in the non-formal sector but even multinationals do engage in tax evasions which caused Nigeria to lose trillions of naira over some time, with over 90 billion($550 Million) from automobile firms in Nigeria. This has created a greater vaccum on revenue generations.This has lead to rationale behind the study on effect of personal income tax evasion and performance of informal sector of the Northwestern states of Nigeria. The study adopts the survey research design approach. Through purposive sampling procedures, data were collected using a questionnaire and analysed using Pearson Product Moment Correlation and Simple Regression techniques. Findings revealed a strong relationship between fine rate, corruption and level of tax payer education witha coefficient (.745, .802, and .724with prob. 0.000, 0.000 and 0.004) at 10% level of significance respectively. The study concluded that corruption, education level of tax payers and fine rate are the main determinants of tax evasion in the northwestern of Nigeria. It therefore, recommends that the government should put more efforts to register all informal business to improve revenue generation.

Keywords: Personal Income Tax, Tax Evasion, Informal Sector, Tax Compliance.

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