CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Taxation has long been practice in Nigeria decree No 7 (1986) initially, only men were expected to pay taxes but now all person working and anybody found in the capacity of paying tax obtained to pay tax. Tax is a mandatory levy on income changed for the purpose incurred by the government in recent times through tax evasion are increasing rapidly despite the pathetic financial and economic state of the country. There are daily reports on newspapers and magazines that the government loses billion of naira yearly due to evasion and the fraudulent practices of the tax officials. This has been attributed to many factors. Most people attribute this to the fact that the country’s tax system is highly income based and since income is taxed only at one point or stage a lot of evasion results.
