Curbing Tax Evasion and Avoidance by the Instrumentality of Tax Laws in Nigeria: The UK Example

Abstract

That taxation is a very reliable means of raising revenue is not so debatable, especially where the tax system is meticulously arraigned to take care of tax dissentives. This is indeed a great relief since nations of the world from time immemorial have realized the indispensability of revenue generation in meeting governmental goals. However, greater is the fact that taxation has moved beyond its traditional source of revenue to more encompassing and beneficial status of monetary/economic instrument of overall sustainable development. And so, every nation seeks to attain optimal tax system. But the more the state struggles in this direction (because of its positive spillover effect on the administration of the state), the more the citizens struggle as much as possible to reduce incidence of tax in their daily life and chosen endeavors (because tax reduces available cash and liquidity with profound effect on their purchasing power). Major means of doing this are through tax evasion and avoidance. This paper held the view that apart from the presence of tax dissentives that encouraged tax evasion and avoidance in the Nigerian tax system, even steps at combating these were far from being optimal. It gave useful hints on curbing tax evasion and avoidance in United Kingdom tax system. It adopted a doctrinal method of gathering research materials, relying on primary and secondary sources.