Abstract

ANIMASHAUN, Oyesola  and  CHITIMIRA, Howard. An analysis of the statutory measures adopted to curb tax evasion in Nigeria after the COVID-19 pandemic. De Jure (Pretoria) [online]. 2023, vol.56, n.1, pp.136-156. ISSN 2225-7160.  http://dx.doi.org/10.17159/2225-7160/2023/v56a11.

The damage caused by the coronavirus disease (COVID-19) pandemic to the fragile Nigerian economy is incalculable. The Nigerian economy was further weakened by the corruption of government officials involving the palliative measures put in place to provide financial relief to companies and individuals affected by the COVID-19 pandemic. Since the Nigerian economy relies mostly on crude oil revenue, its focus on tax is less emphasised and tax evasion is pervasive. Consequently, the Nigerian tax on gross domestic product (GDP) is only about 6 per cent. This article examines the adequacy of the legal and/or statutory measures aimed at curbing tax evasion in Nigeria. The post-COVID-19 revenue shortfall has made the Nigerian federal and state governments raise the existing taxes, introduce new taxes, and adopt more aggressive tax collection methods. Consequently, taxpayers now use tax exemptions and incentives as devices for tax evasion. Moreover, there is rampant non-remittance of tax proceeds by government ministries, departments, and agencies to the tax authorities. Thus, despite the introduction of various laws, policies, and directives to curb tax evasion, especially after the COVID-19 pandemic, tax evasion challenges still persist. Accordingly, it is submitted that good governance, integrity, and transparency in handling public funds are required to reduce and combat tax evasion in Nigeria.

Keywords : tax evasion; good governance; transparency; corruption; COVID-19 pandemic.

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