1.1 INTRODUCATION:
Generation of tax revenue from the private sector, especially from the self-employed people has always posed a problem. Millions of Naira has been lost due to prevalence of tax evasion and avoidance among the self-employed people. Consequently, taxation cannot be used as a major instrument for revenue generation and key to sustainable economic development, because this hinders the realization of fiscal objectives.
Every year billions of naira are lost because of tax evasion and avoidance by the self-employed people (Ndulu,2003). Both the federal and state government have applied various measures to solve this problem but to no avail the question is; why is tax evasion and avoidance prevalent among the self- employed persons?
REVIEW OF RELATED LITERATURE
2.0MEANING OF TAXATION
Taxation is a compulsory levy impose on a subject or upon his property by the government to provide security, social amenities and other public goods for the well-being of the society (Ican Study pack 2009). The main purpose of taxation is to raise fund to defray the expenses incurred for the common interest of the country without reference to special benefit conferred. A good tax system therefore, will generate revenue for the government, help in shaping and directing economic activities, redistribute financial resources and using the income generated to finance social welfare.
