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ABSTRACT
Sustainable infrastructural dev elopment as a key ingredient for sustained economic
growth has thus far received poor attention in Ado Odo Ota local government area.
The intense shortage of infrastructure constitutes a huge threat to survival in the
study area. Despite the efforts made t o enhance this “Social Overhead Capital”al”, it
still currently does not meet the requirement of economic development. The study
emphasizes on the extent the tax ir regularities hinder sustainable infrastructural
development, the short and long run effects and the possible causes of tax evasion
and avoidance , drawbacks of tax in the study area. The opinions of the
population of study comprising tax payers and authorities were not left out as a
structured questionnaire was used to elicit the opinions of seventy (70) respondents
in the study area , after then analyzed using the simple percentage method a nd the
formulated hypotheses were later on tested using the chi square goodness of fit
technique at 0.05 level of significance After a statistical analysis of results, it was
concluded amongst others that the practice of tax evasion and avoidance has
negative effects only, on sustainable infrastructural development ranging from short
to long run effects. A lot still needs to be harnessed towards improving t he quality
and condition of infrastructures. It was recommended amongst others that w e
should always pay our tax correctly and as at when due because greediness and
selfishness constitutes one of the major causes of tax evasion and avoidance on the
part of the tax payers.
TABLE OF CONTENTS
TABLE OF CONTENTS
COVER PAGE ………………
COVER PAGE ……………………………………………………………………………………………………………..…………..………….
TITLE PAGE ………………………
TITLE PAGE ………………………………………………………………………………………………………………………………………..
CERTIFICATION ………………………
CERTIFICATION …………………………………………………………………………………………………………………
DEDICATION
DEDICATION …………………………………………………………………………………………………………………………………………..……..
ACKNOWLEDGEMENT
ACKNOWLEDGEMENTSS ………………………………………………………………………………………………………….………….
ABSTRACT ………………
ABSTRACT ………………………………………………………………………….…….……………………………………..………………..
TABLE OF CONTENTS …………………………………….
TABLE OF CONTENTS ……………………………………………………………………………………………..
LIST OF TABLES ………………………………………………
LIST OF TABLES ……………………………………………………..…………………..……………..
CHAPTER ONE
CHAPTER ONE
INTRODUCTION
INTRODUCTION
1.1
1.1 BACKGROUND OF THE STUDYBACKGROUND OF THE STUDY…………………………………………………………………………………………..
1.2
1.2 STATEMENT OF THE PROBLEM ………………………………….STATEMENT OF THE PROBLEM ……………………………………………………
1.3
1.3 RESEARCH QUESTIONS RESEARCH QUESTIONS …………………………………………………………………………………………………………….
1.4
1.4 AIM AND OBJECTIVES OF THE STUDY ………………………………..AIM AND OBJECTIVES OF THE STUDY ………………………………..
1.5
1.5 STATEMENT OF HYPOTHSTATEMENT OF HYPOTHEESES …………………SES ………………………….…………………….……………….
1.6
1.6 SIGNIFICANCE OF THE STUDY ………………………………………SIGNIFICANCE OF THE STUDY …………………………………………………
1.7
1.7 SCOPE OF STUDY ….SCOPE OF STUDY …………………………………………………………………………………………………………………………
1.8
1.8 STUDY AREA ……………………………………………………………………..STUDY AREA ……………………………………………………………………….
1.9
1.9 LIMITATION OF STUDY LIMITATION OF STUDY ………………………………………………………………………………………………………………
1.10
1.10 DEFINITION OF TERMS ……………………………………………………..DEFINITION OF TERMS ……………………………………………………….
CHAPTER TWO
CHAPTER TWO
LITERATURE REVIEW
LITERATURE REVIEW
2.1
2.1 UNDERSTANDING TAX AS A TERM ………..UNDERSTANDING TAX AS A TERM ………………………………………………………………………
2.2
2.2 THE PRINCIPLES OF TAXATION ………………………………………….THE PRINCIPLES OF TAXATION ……………………………………………..
2.3
2.3 TYPES OF TAX …………………………………………………………………..TYPES OF TAX …………………………………………………………………..
2.4
2.4 HISTORICAL ACCOUNT OF TAXATION IN NIGERIA ..HISTORICAL ACCOUNT OF TAXATION IN NIGERIA ………………………………..
2.5
2.5 TAX ADMINSTRATION IN NIGERIA ………………………………………..TAX ADMINSTRATION IN NIGERIA ………………………………………….
2.6
2.6 REASONS FOR TAXATION ……………………………………………………REASONS FOR TAXATION ……………………………………………………
2.7
2.7 TAX AVOIDANCE AND EVASIONTAX AVOIDANCE AND EVASION ….……………………………………………………………………………………..
2.7
2.7.1.1 TAX EVASION ……………………………………………………………………TAX EVASION ……………………………………………………………………..
2.7.2
2.7.2 TAX AVOIDANCE ……………………………………………………………….TAX AVOIDANCE …………………………………………………………………
2.8
2.8 DIFFERENCES BETWEEN TAX EVASION DIFFERENCES BETWEEN TAX EVASION AND TAX AVOIDANCE …AND TAX AVOIDANCE …
2.9
2.9 TECHNIQUE OF TAX AVOIDANCE AND EVASION ………….TECHNIQUE OF TAX AVOIDANCE AND EVASION ……………………………….
2.10
2.10 CAUSES OF TAX AVOIDANCE AND EVASION ………………………….CAUSES OF TAX AVOIDANCE AND EVASION ………………………….
2.11
2.11 SUSTAINABITY AND SUSTAINABLE DEVELOPMENT ………SUSTAINABITY AND SUSTAINABLE DEVELOPMENT ………………………….
2.12
2.12 IMPACT OF TAX EVASION AND TAX AVOIDANCE ON THIMPACT OF TAX EVASION AND TAX AVOIDANCE ON THEE………..………….
ECONOMYECONOMY
2.13
2.13 OVERVIEW OF EXISTING INSTITUTIONAL RESPONSIBITIESOVERVIEW OF EXISTING INSTITUTIONAL RESPONSIBITIES ….…………
FOR FOR THE CONSTRUCTION AND MAINTENANCE OFTHE CONSTRUCTION AND MAINTENANCE OF
INFRASTRUCTUREINFRASTRUCTURE AND SERVICES IN NIGERIAAND SERVICES IN NIGERIA
CHAPTER THREE
CHAPTER THREE
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
3.1
3.1 RESEARCH DESIGN RESEARCH DESIGN …………………………………………………………………………………………………………………………
3.1.1
3.1.1 SOURCE OF DATA …………………………………………………SOURCE OF DATA …………………………………………………………………
3.1.2
3.1.2 POPULATION OF STUDY ……………………………………………………..POPULATION OF STUDY …………………………………………………………
3.1.3
3.1.3 SAMPLE SIZE AND SAMPLING TECHNIQUE ……SAMPLE SIZE AND SAMPLING TECHNIQUE ……………………………………………………
3.1.4
3.1.4 INSTRUMENTATION/DATA COLLECTION PROCEDURE …………..INSTRUMENTATION/DATA COLLECTION PROCEDURE …………….
3.2
3.2 RELIABILITY TEST …………………………………………………RELIABILITY TEST …………………………………………………………..………..
3.3
3.3 VALIDITY TEST ………………………………………………VALIDITY TEST …………………………………………………………………..…..…..…..
3.
3.44 METHOD OF DATA ANALYSIS ………………………………….METHOD OF DATA ANALYSIS …………………………………………………………..
3.4.1
3.4.1 DECISION RULE ……………………………………………………………DECISION RULE …………………………………………………………………
CHAPTER FOUR
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1
4.1 DATA PRESENTATION ……………………………………………………DATA PRESENTATION …………………………………………………………
4.2
4.2 ANALYSIS OF QUESTIONS …………………………………………………ANALYSIS OF QUESTIONS …………………………………………………
4.3
4.3 TEST OF HYPOTHESES ……………………………………………TEST OF HYPOTHESES ……………………………………………………….…….
CHAPTER FIVE
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONSRECOMMENDATIONS
5.1
5.1 SUMMARY OF FINDINGS …………………………………………SUMMARY OF FINDINGS ………………………………………………………… ….
5.2
5.2 CONCLUSION ………………………………………………………CONCLUSION ……………………………………………………………………………
5.3
5.3 RECOMMENDATIONS ……………………………………………RECOMMENDATIONS …………………………………………………………………
REFERENCES
REFERENCES ………………………………………………………………………………………………………………………………………………………………….
APPENDICES …………………………………………………………………………
APPENDICES ………………………………………………………………………………

LIST OF TABLES
PAGESPAGES
Table 2.1
Table 2.1 DDifferences between tax evasion and tax avoidanceifferences between tax evasion and tax avoidance ……………………..
Table 2
Table 2.2.2 EExisting xisting institutional responinstitutional responsibilities for the construction …sibilities for the construction …
and maintenance of infand maintenance of infrastructure and services in therastructure and services in the
countrycountry..
Table 2
Table 2.3.3 NNigeria expenditure assignmentsigeria expenditure assignments ………………………………………………………………… …
Table 4.1
Table 4.1 Pattern of retrieval of qPattern of retrieval of questionnairesuestionnaires …………………………………………………………
Table 4.2
Table 4.2 SSex ex of Respondentsof Respondents …………………………………..…………..…………………………………..………….. ……
Table 4.3
Table 4.3 Location of rLocation of respondentsespondents …………………………..……………..…………………………..…………….. ……
Table 4.4
Table 4.4 Age group of rAge group of respondentsespondents …………………………………………………………………………………..…..
Table 4.5
Table 4.5 Marital status of rMarital status of respondentsespondents …………………………….………………………………….……….….
Table 4.6
Table 4.6 Employment status of rEmployment status of respondentsespondents ………………………………………………………………
Table 4.7
Table 4.7 Analysis to know if the respondents pay their tax …………Analysis to know if the respondents pay their tax …………….….
Table 4.8
Table 4.8 How often the respondents pay their tax …………………How often the respondents pay their tax ……………………………….
Table 4.9
Table 4.9 Highest Academic Qualification of Respondents…………..…Highest Academic Qualification of Respondents…………..…….
Table 4.10
Table 4.10 Analysis to show Analysis to show the respondents’ opinion on tthe respondents’ opinion on thehe …………………… ……
quantity and condition of infrastructures inquantity and condition of infrastructures in
AdoAdo–Odo Ota local governmentOdo Ota local government
Table 4.11
Table 4.11 Analysis to show the respondents’ opinion on how ……..…Analysis to show the respondents’ opinion on how ……..…….….
effective tax administration is undertaken ineffective tax administration is undertaken in
AdoAdo–Odo Ota local Odo Ota local government areagovernment area
Table 4.12
Table 4.12 Respondents’ description of the practice of tax evasionRespondents’ description of the practice of tax evasion…………….….
and avoidanceand avoidance
Table 4.13
Table 4.13 Analysis to show the respondents’ opinion on how they……Analysis to show the respondents’ opinion on how they…………
consider the practice of tax evasion and avoidanceconsider the practice of tax evasion and avoidance
Table 4.14
Table 4.14 Tax evasion anTax evasion and avoidance hinder sustainable…………..…d avoidance hinder sustainable…………..…….….
infrastructural developmental in Adoinfrastructural developmental in Ado–Odo Ota localOdo Ota local
government area.government area.
Table 4.15
Table 4.15 The extent tax evasion and avoidance hinder sustainable…The extent tax evasion and avoidance hinder sustainable………
infrastructural development in Adoinfrastructural development in Ado–Odo Ota localOdo Ota local
government areagovernment area
Tab
Table 4.16le 4.16 Analysis to show the respondents’ opinion on whether ……Analysis to show the respondents’ opinion on whether …………..
the effects of tax evasion and avoidance on sustainablethe effects of tax evasion and avoidance on sustainable
infrastructural development in Adoinfrastructural development in Ado–Odo Ota localOdo Ota local
government area are in the shortgovernment area are in the short–oror–longlong–run. run.
Table 4.17
Table 4.17 The respondents’ opinion on the shortThe respondents’ opinion on the short–run effects of tax run effects of tax …..….. and avoidance on sustainable infrastructural developmentand avoidance on sustainable infrastructural development
in Adoin Ado–Odo Ota local governmentOdo Ota local government
Table 4.18
Table 4.18 The respondents’ opinion on thThe respondents’ opinion on the longe long–run effects of tax …..run effects of tax ….. and avoidance on sustainable infrastructural developmentand avoidance on sustainable infrastructural development
in Adoin Ado–Odo Ota local governmentOdo Ota local government
Table 4.19
Table 4.19 Analysis to show the respondents’ opinion on the possible…Analysis to show the respondents’ opinion on the possible…
causes of tax evasion and avoidance in Adocauses of tax evasion and avoidance in Ado–Odo OtaOdo Ota
local government area.local government area.
Table 4.20
Table 4.20 TTherhere is a difference between the number of personse is a difference between the number of persons that…that…
pay tax and the number of persons that are liable to paypay tax and the number of persons that are liable to pay
tax in Adotax in Ado–Odo Ota local government area.Odo Ota local government area.
Table 4.21
Table 4.21 The number of persons that are liable to pay tax is ……….The number of persons that are liable to pay tax is ……….
greater than the number the ngreater than the number the number of persons that payumber of persons that pay
tax in Adotax in Ado–Odo local government area.Odo local government area.
Table 4.22
Table 4.22 Tax revenue gotten from tax payers is for their betterment…Tax revenue gotten from tax payers is for their betterment…
and welfare.and welfare.
Table 4.23
Table 4.23 Respondents’ opinion on whether sustainable ………………Respondents’ opinion on whether sustainable ………………
infrastructural development can be infrastructural development can be advanced inadvanced in
AdoAdo–Odo Ota local government area.Odo Ota local government area.
Table 4.24
Table 4.24 Respondents’ opinion on whether we should always pay..…Respondents’ opinion on whether we should always pay..…
our tax correctly and as at when due.our tax correctly and as at when due.
Table 4.25
Table 4.25 Exemption of religious properties …………………………….…Exemption of religious properties …………………………….…
Table 4.26
Table 4.26 Analysis to show the Analysis to show the respondents’ recommendations…….…respondents’ recommendations…….…
Table 4.14
Table 4.14 Analysis to show the respondents’ opinion on Question 5Analysis to show the respondents’ opinion on Question 5 ……
in Section B which was used to test for the hypothesis onein Section B which was used to test for the hypothesis one
stated.stated.
Table 4.20
Table 4.20 Analysis to show the respondAnalysis to show the respondents’ opinion on Question 11…ents’ opinion on Question 11…
in Section Bin Section B which was used to test for the hypothesis twowhich was used to test for the hypothesis two
stated.stated.

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDYBACKGROUND OF THE STUDY
There is every need to update our knowledge with the effects of tax evasion and avoidance on sustainable infrastructural development in Adoavoidance on sustainable infrastructural development in Ado–OdoOdo Ota local Ota local government area, Ogun state, because it is of a great benefit to all of us that government area, Ogun state, because it is of a great benefit to all of us that fall under these categories, the residents of the study area, the governing fall under these categories, the residents of the study area, the governing authority who is the custodian of the local government in question, authority who is the custodian of the local government in question, professionals who serprofessionals who service infrastructural development and tax administration vice infrastructural development and tax administration and inquisitive members of our society.and inquisitive members of our society.
Tax evasion and avoidance is a common drama acted in many local
Tax evasion and avoidance is a common drama acted in many local government areas in the country most especially the Adogovernment areas in the country most especially the Ado–Odo Ota local Odo Ota local government area, unknown tgovernment area, unknown to most of the occupants of such areas the effects o most of the occupants of such areas the effects of such actions.of such actions.
Tax evasion and avoidance defiles sustainable infrastructural development in
Tax evasion and avoidance defiles sustainable infrastructural development in any constituted society. One of the duties of the goverany constituted society. One of the duties of the government at all tiersnment at all tiers is is making available infrastructures, rmaking available infrastructures, referring to roadseferring to roads, , utiutility lines,lity lines, hospitals, hospitals, schools, emergency services like fireschools, emergency services like fire fighters, ambulance and police, sidewalks, fighters, ambulance and police, sidewalks, motorable and pedestrian bridgesmotorable and pedestrian bridges. The basic facilities that make a town or city . The basic facilities that make a town or city function effectively are known as infrastructures.function effectively are known as infrastructures. Tax evasion and avoidance Tax evasion and avoidance can be understood as an act of deliberately causing harm to oneself and fellow can be understood as an act of deliberately causing harm to oneself and fellow members of the society. According to Farayola (1987), Tax evasion is the members of the society. According to Farayola (1987), Tax evasion is the fraudulent, dishonest, intentional distortion or concealment of facts and fraudulent, dishonest, intentional distortion or concealment of facts and figfigures with the intention of avoiding the payment of or reducing the amount of ures with the intention of avoiding the payment of or reducing the amount of tax otherwise payable, while Tax avoidance according to Nwakaji and Ewah tax otherwise payable, while Tax avoidance according to Nwakaji and Ewah (2010) refers to a taxpayer’s effort to avoid paying tax by finding a legal (2010) refers to a taxpayer’s effort to avoid paying tax by finding a legal loophole in the tax system, itloophole in the tax system, it could also be said to be the arrangement of affairs could also be said to be the arrangement of affairs in such a manner as to pay minimum amount of tax due.in such a manner as to pay minimum amount of tax due.
A number of questions then bother the mind: To what extent does tax evasion
A number of questions then bother the mind: To what extent does tax evasion and avoidance hinder sustainable infrastructural development in Adoand avoidance hinder sustainable infrastructural development in Ado–Odo OOdo Ota ta local government area? What are the short and longlocal government area? What are the short and long–run effects of tax evasion run effects of tax evasion
and avoidance on sustainable infrastructural development in Ado
and avoidance on sustainable infrastructural development in Ado–Odo Ota Odo Ota local government area? What is sustainability and sustainable development? local government area? What is sustainability and sustainable development? What are the chances of advaWhat are the chances of advancing sustainable infrastructural development in ncing sustainable infrastructural development in Ado Odo Ota local government area?Ado Odo Ota local government area?
In my attempt to cover the entirety of this study, answers to these questions will be given accordingly
1.2 STATEMENT OF PROBLEMSTATEMENT OF PROBLEM
The quantity and condition of the infras
The quantity and condition of the infrastructures in Adotructures in Ado–Odo Ota local Odo Ota local government area gets worse by the day as the population increase due to influx government area gets worse by the day as the population increase due to influx of residents of Lagos state who share boundary with Ogun state, caused by the of residents of Lagos state who share boundary with Ogun state, caused by the overover–congestion and overcongestion and over–crowdedness of dwellers in Lagos state of wcrowdedness of dwellers in Lagos state of which can hich can no longer contain its overno longer contain its over–flowing populace. Overflowing populace. Over–utilization of infrastructures utilization of infrastructures in in LagosLagos state presently causing defects and great unbalance of resources to state presently causing defects and great unbalance of resources to inhabitants. The outcome of such migration is a large increase in the demand inhabitants. The outcome of such migration is a large increase in the demand for sustainafor sustainable infrastructural development in Ogun state, just as Adoble infrastructural development in Ogun state, just as Ado–Odo Ota Odo Ota local government area serves as the choice residence to these migrants due to local government area serves as the choice residence to these migrants due to its proximity to Lagos state.its proximity to Lagos state.
Over
Over–dependence and overdependence and over–reliance on the federal allocations has instigated tax reliance on the federal allocations has instigated tax ppayers and collectors in the local government area to relax from their civic ayers and collectors in the local government area to relax from their civic duties towards tax. Sustainable infrastructural development can only be duties towards tax. Sustainable infrastructural development can only be achieved where there is minimal or no presence of tax evasion and avoidance.achieved where there is minimal or no presence of tax evasion and avoidance.
Tax evasion and avoidance have
Tax evasion and avoidance have rooted its presence in virtually the entire local rooted its presence in virtually the entire local government areas in the country but no one seems to know the extent it has government areas in the country but no one seems to know the extent it has gone in particular areas, why they occur there and proffer solution. This study gone in particular areas, why they occur there and proffer solution. This study is therefore designed to add to existing knowledge,is therefore designed to add to existing knowledge, the effects of tax evasion the effects of tax evasion and avoidance on sustainable infrastructural development in Adoand avoidance on sustainable infrastructural development in Ado–Odo Ota local Government area, Ogun state
1.3 RESEARCH QUESTIONSRESEARCH QUESTIONS
In order for this research work to be effective and efficient, it pleasesrder for this research work to be effective and efficient, it pleases the the researcher to asresearcher to ask the following questions:k the following questions:
1. To what extent does tax evasion and avoidance hinder sustainable To what extent does tax evasion and avoidance hinder sustainable infrastructural development in infrastructural development in AdoAdo–Odo Ota local government areaOdo Ota local government area??
2. What are the short and longWhat are the short and long–run effects of tax evasion and avoidance on run effects of tax evasion and avoidance on sustainable infrastructurasustainable infrastructural development in l development in the study areathe study area??
3. What are the possible causes of tax evasion and avoidance in What are the possible causes of tax evasion and avoidance in the study the study areaarea??
4. What recommendation can be given to the examined problems of these tax What recommendation can be given to the examined problems of these tax irregularitiesirregularities inin the study areathe study area??
1.4 AIM AND OBJECTIVES OF THE STUDY
The aim of this study is to examine the effects of tax evasion and avoidance on aim of this study is to examine the effects of tax evasion and avoidance on sustainable infrastructural development in Adosustainable infrastructural development in Ado–Odo Ota Local Government Odo Ota Local Government Area, Ogun state. The broad objective is broken down to the following specific Area, Ogun state. The broad objective is broken down to the following specific objectives:objectives:
1. To ascertain theTo ascertain the extent tax evasion and avoidance hinder sustainable extent tax evasion and avoidance hinder sustainable infrastructural development in Adoinfrastructural development in Ado–Odo Ota local government area.Odo Ota local government area.
2. To examine the short and longTo examine the short and long–run effects of tax evasion and avoidance on run effects of tax evasion and avoidance on sustainable infrastructural development in sustainable infrastructural development in the study areathe study area..
3. To iTo identify the possible causes of tax evasion and avoidance in dentify the possible causes of tax evasion and avoidance in the study the study areaarea..
4. To make recommendation on the examined problems of these tax To make recommendation on the examined problems of these tax irregularitiesirregularities in the study areain the study area..
1.5 STATEMENT OF HYPOTHESES
The following hypotheses have been posited to aid the
The following hypotheses have been posited to aid the research work. The null research work. The null hypothesis is denoted as “Ho” while the alternative hypothesis is denoted as hypothesis is denoted as “Ho” while the alternative hypothesis is denoted as “Hi”.“Hi”.
HYPOTHESIS ONE:
Ho11: : There is no relationship between tax evasion and avoidance and There is no relationship between tax evasion and avoidance and sustainable infrastructural development in Adosustainable infrastructural development in Ado–Odo Ota local govOdo Ota local government ernment area, Ogun state.area, Ogun state.
Hi
Hi11: : There is a relationship between tax evasion and avoidance and There is a relationship between tax evasion and avoidance and sustainable infrastructural development in Adosustainable infrastructural development in Ado–Odo Ota local government Odo Ota local government area, Ogun state.area, Ogun state.
HYPOTHESIS TWO:
Ho22:: There is no difference between the number of personThere is no difference between the number of persons that are liable s that are liable to pay tax and the number of persons that pay tax in Adoto pay tax and the number of persons that pay tax in Ado–Odo Ota local Odo Ota local government area, Ogun state.government area, Ogun state.
Hi
Hi22:: There is a difference between the number of persons that are liable to There is a difference between the number of persons that are liable to pay tax and the number of persons that pay tax in Adopay tax and the number of persons that pay tax in Ado–Odo Ota Odo Ota local local government area, Ogun state.government area, Ogun state.

1.6 SIGNIFICANCE OF THE STUDY
This study would be relevant to various tax authorities; the Federal Inland Revenue Service, State Internal Revenue Service, Local Government revenue Revenue Service, State Internal Revenue Service, Local Government revenue committee as well as their tax officialcommittee as well as their tax officials who are responsible to collect tax s who are responsible to collect tax liability from individuals or corporate bodies. It gives them insight on how to liability from individuals or corporate bodies. It gives them insight on how to improve the tax administration. The study wimprove the tax administration. The study would also helpould also help professional bodies professional bodies like the Chartered Institute of Taxation of Nigeria, the Instlike the Chartered Institute of Taxation of Nigeria, the Institute of Chartered itute of Chartered Accountants of Nigeria and the Nigerian Institution of Estate Surveyors and Accountants of Nigeria and the Nigerian Institution of Estate Surveyors and Valuers as well as their members to see the areas of deficiency in the Valuers as well as their members to see the areas of deficiency in the collections and call for improvement in tax revenue. This study would also be collections and call for improvement in tax revenue. This study would also be relevant to relevant to the future researchers and any such individual or corporate body the future researchers and any such individual or corporate body that is concerned with achieving sustainable infrastructural development in a that is concerned with achieving sustainable infrastructural development in a
particular area as well as the legislations which will also benefit greatly from
particular area as well as the legislations which will also benefit greatly from this study, because it will formthis study, because it will form basis of tax policy formation, imbasis of tax policy formation, implementation plementation and administration.and administration.
1.7 SCOPE OF STUDY
It is focused on studying the discernible and foreseeable effects of tax evasion
It is focused on studying the discernible and foreseeable effects of tax evasion and avoidance on sustainable infrastructural development. The study will and avoidance on sustainable infrastructural development. The study will focus primarily andfocus primarily and precisely on Adoprecisely on Ado–Odo Ota local government area in Ogun Odo Ota local government area in Ogun state, to enable the studier carryout an extensive study on this subject. The state, to enable the studier carryout an extensive study on this subject. The geographical scope to be covered is strictly limited to Adogeographical scope to be covered is strictly limited to Ado–Odo Ota local Odo Ota local government area in Ogungovernment area in Ogun state.state.

1.8 STUDY AREA
Source: Maphill Map Gallery, 2013; Ogun Today, 2014.Maphill Map Gallery, 2013; Ogun Today, 2014.
The Ado
The Ado–Odo/Ota Local Government Area is one of the 19 Local Government Odo/Ota Local Government Area is one of the 19 Local Government Areas of Ogun State, Nigeria. It came into existence on May 19, 1989 following Areas of Ogun State, Nigeria. It came into existence on May 19, 1989 following the merging of Ota, part of the defunct the merging of Ota, part of the defunct Ifo/Ota Local Government with AdoIfo/Ota Local Government with Ado–Odo/Igbesa Areas of the Yewa South Local Government. AdoOdo/Igbesa Areas of the Yewa South Local Government. Ado–Odo/Ota borders Odo/Ota borders on metropolitan Lagos. The Local Government Area is the second largest in on metropolitan Lagos. The Local Government Area is the second largest in Ogun State and it is headquartered at Ota or Otta (Wikipedia, 2015).Ogun State and it is headquartered at Ota or Otta (Wikipedia, 2015).
It has an area of 878 km² and a population of 526,565 at the 2006 census.
Being primarily agrarian in nature, the Local Government Area produces cash and food crops especially cocoa, kolanut, palm oil, coffee, cassava, timber, and food crops especially cocoa, kolanut, palm oil, coffee, cassava, timber, maize, and vegetables. Mineramaize, and vegetables. Mineral resources include kaolin, silica sand, gypsum, l resources include kaolin, silica sand, gypsum, and glass sand (Wikipedia, 2015).and glass sand (Wikipedia, 2015).
The local government area have these as its boundaries, Lagos state in east
The local government area have these as its boundaries, Lagos state in east and south, Yewa South and Ifo local governments in the north and Ipokia local and south, Yewa South and Ifo local governments in the north and Ipokia local government in the wgovernment in the west. The area is divided into 16 administrative/political est. The area is divided into 16 administrative/political divisions, which are Ota (1), Ota (2), Ota (3) Ilogbo, Atan, Alapoti, Adodivisions, which are Ota (1), Ota (2), Ota (3) Ilogbo, Atan, Alapoti, Ado–Odo (1), Odo (1), AdoAdo–Odo Ota (2), Ere, Igbesa, Ketu, Adie Owe, Agbara (1), Agbara (2), Iju, Sango Odo Ota (2), Ere, Igbesa, Ketu, Adie Owe, Agbara (1), Agbara (2), Iju, Sango and Ijoko (Ogun State Biz, 2013).and Ijoko (Ogun State Biz, 2013).
The Local Government is populated mainly by the Awori people, a subset of the
The Local Government is populated mainly by the Awori people, a subset of the Yorubas and the original inhabitants of the area. However, other ethnic groups Yorubas and the original inhabitants of the area. However, other ethnic groups like Egba settlers, Eguns, and Yewas (Egbados) also live here. There are like Egba settlers, Eguns, and Yewas (Egbados) also live here. There are currently eleven Traditioncurrently eleven Traditional Obaship institutions in the Local Government Area al Obaship institutions in the Local Government Area namely: Olota of Ota, Olofin of Adonamely: Olota of Ota, Olofin of Ado–Odo, Oloja Ekun of Igbesa, Onilogbo of Odo, Oloja Ekun of Igbesa, Onilogbo of Ilogbo, Alagbara of Agbara, Amiro of Ilamiro, Onikooko of Kooko Ebiye, Ilogbo, Alagbara of Agbara, Amiro of Ilamiro, Onikooko of Kooko Ebiye, Onikogbo of Ikogbo, Onitekun of Itekun, Onigun of Odan AbOnikogbo of Ikogbo, Onitekun of Itekun, Onigun of Odan Abuja and Olodan of uja and Olodan of Odan Abuja Sule (Wikipedia, 2015).Odan Abuja Sule (Wikipedia, 2015).
The Local Government Area boasts of a range of cultural, traditional, and historic attractions. One of the most popular is the Egungun (Masquerade) historic attractions. One of the most popular is the Egungun (Masquerade) festival in Ota alongside the Oduduwa (Odu’a) festival.festival in Ota alongside the Oduduwa (Odu’a) festival. There are also shrines There are also shrines such as Ijamido and Ogbodo Shrines. The second oldest storey building in such as Ijamido and Ogbodo Shrines. The second oldest storey building in West Africa can be found in Ota, the Vicarage of the St. James Anglican West Africa can be found in Ota, the Vicarage of the St. James Anglican Church built in 1842. The postal code of the area is 112. The Local Church built in 1842. The postal code of the area is 112. The Local Government Area is Government Area is also home to former Nigerian President Olusegun also home to former Nigerian President Olusegun Obasanjo and his postObasanjo and his post–presidential enterprise, Obasanjo Farms located in Ota presidential enterprise, Obasanjo Farms located in Ota (Wikipedia, 2015).(Wikipedia, 2015).
It houses the largest religious auditorium in the world, the Faith Tabernacle
It houses the largest religious auditorium in the world, the Faith Tabernacle (Canaan Land) of the Winners Chape(Canaan Land) of the Winners Chapel built and dedicated in September, 1999. l built and dedicated in September, 1999. The immediate Executive Chairman is ComradThe immediate Executive Chairman is Comrade Rotimi Rahmon (Adeyemo, e Rotimi Rahmon (Adeyemo, 2014).
1.9 LIMITATION OF THE STUDY
It is not strange for a research to encounter some difficulties in the course of research and these encountered inresearch and these encountered in the course of this research include:the course of this research include:
1. Inadequate time due to the combination of class schedule and project Inadequate time due to the combination of class schedule and project work.work.
2. Lack of full cooperation by some of the respondents and some who refuse Lack of full cooperation by some of the respondents and some who refuse to receive the researcher and some afterwards delayed in giving back thto receive the researcher and some afterwards delayed in giving back the e questionnaire.questionnaire.
3. Financial constrainFinancial constraintts though this is always a major limitation in studies of s though this is always a major limitation in studies of this nature, since the researcher may not have enough money to carry out all this nature, since the researcher may not have enough money to carry out all the necessary research.the necessary research.
4. There are areas where data is available but the researcher caThere are areas where data is available but the researcher cannot lay nnot lay hands on them because the relevant information is sometimes termed hands on them because the relevant information is sometimes termed confidential and unavailable to outsiders.confidential and unavailable to outsiders.
Despite all this limitations and hindrances mentioned above, the research
Despite all this limitations and hindrances mentioned above, the research study no doubt turned out to be successful.study no doubt turned out to be successful.
1.10 DEFINITION OF TERMS
There are some terms used in this study and proper understanding of the terms is important in appreciating this study:terms is important in appreciating this study:
1. TAX: Tax can be defined as a charge by government on persons, Tax can be defined as a charge by government on persons, corporations, estates and trust for the purpose of raising money forcorporations, estates and trust for the purpose of raising money for government expenditure (Umezuruike, 1998). Ifediora (1998) also defined tax government expenditure (Umezuruike, 1998). Ifediora (1998) also defined tax as the sum of money demanded by the government for its support or for as the sum of money demanded by the government for its support or for specific facilities or service, levied upon incomes from property, sales and specific facilities or service, levied upon incomes from property, sales and services. Eribo (2010) emphasizeservices. Eribo (2010) emphasized that taxes are normally paid by the eligible d that taxes are normally paid by the eligible citizens of any political system as a legal obligation, regardless of the extent to citizens of any political system as a legal obligation, regardless of the extent to which they benefit from the services the proceeds finance.which they benefit from the services the proceeds finance.
2. TAX EVASION Tax evasion is the fraudulent, dishonest, intentional Tax evasion is the fraudulent, dishonest, intentional distortion or concealment of facts and figures with the intention of avoiding the distortion or concealment of facts and figures with the intention of avoiding the
payment of or reducing the amount of tax otherwise payable (Farayola, 1987).
payment of or reducing the amount of tax otherwise payable (Farayola, 1987).
3. TAX AVOIDANCE: Tax avoidance refers to a Tax avoidance refers to a taxpayer’s effort to avoid taxpayer’s effort to avoid paying tax by finding a legal loophole in the tax system, it could also be said to paying tax by finding a legal loophole in the tax system, it could also be said to be the arrangement of affairs in such a manner as to pay minimum amount of be the arrangement of affairs in such a manner as to pay minimum amount of tax due (Nwakaji & Ewah, 2010).tax due (Nwakaji & Ewah, 2010).
4. TAX LIABILITY:   This is the amount thatThis is the amount that is borne by the tax payer is borne by the tax payer (Ihuoma, 2013).(Ihuoma, 2013).
5. PAYE (PAY AS YOU EARN): This type of tax is based on the earning of the This type of tax is based on the earning of the tax payer (Ihuoma, 2013).

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