Voluntary Assets and Income Declaration Scheme to Address Tax Evasion in Edo State Nigeria

Paul Atagamen Aidonojie

doi:10.25041/aelr.v4i1.2822

DOI:

https://doi.org/10.25041/aelr.v4i1.2822

Abstract

In Edo State, taxation is a primary revenue-generating tool that finances most public projects. Most residents of Edo State rely on small, medium, and large-scale businesses to make living. Unfortunately, both citizens and business owners frequently attempt to evade or avoid paying taxes, citing reasons such as a large number of taxable items and excessively high tax rates, among others. In this research, a hybrid research method was used in exploring how the Voluntary Assets and Income Declaration Scheme (VAIDS) policy curbs the tax evasion and avoidance and generates higher revenue. The results of this research showed that localizing the VAIDS policy would decrease the rate of tax evasion and avoidance. In conclusion, localizing the voluntary asset and income declaration scheme in Edo State can be an appropriate tool for curbing tax evasion and avoidance, as well as generating greater revenue.

Keywords:

Asset, Avoidance, Evasion, Income, Nigeria, Tax, VAIDS

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