International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (469-483), Month: October 2019 - March 2020, Available at: www.researchpublish.com
EXAMINATION OF THE EFFECTIVENESS OF TAXPAYER IDENTIFICATION NUMBER (TIN) IN COMBATING TAX EVASION IN NIGERIA (CASE STUDY OF AKWA IBOM STATE BOARD OF INTERNAL REVENUE) 1 1
Efanga, Udeme Okon, 2Umoh, Emmanuel Alphonsus, 3Jonah, Akanimo Edet
Department of Banking and Finance, College of Management Science, Michael Okpara University of Agriculture, Umudike. 2 Department of Statistic, Akwa Ibom State Polytechnic, Ikot Osurua 3 Department of Science Tech., Akwa Ibom State Polytechnic, Ikot Osurua Email: udemeefanga@gmail.com Email: emmatotal12@gmail.com Email: akan.jonah@gmail.com
Abstract: The study was carried-out to examine the effectiveness of Taxpayer Identification Number (TIN) in combating tax evasion in Nigeria (case study of Akwa Ibom State board of internal revenue). The related literatures were reviewed. The population of study comprises the total revenue before TIN (TRBT), total revenue after TIN (TRAT), internally generated revenue before TIN (IGRBT) and internally generated revenue after TIN (IGRAT). A number of statistical tools including descriptive statistics, correlation analysis and Auto Regressive Distributed Lag (ARDL) Model were used to analyse the data and test the hypotheses formulated. The (ARDL) Model revealed that, the internally generated revenue (IGR) before the introduction of TIN within (1997-2007) was not significant. Also, it was revealed that the introduction of TIN within (2008-2018) has witnessed a tremendous increase of internally generated revenue in Akwa Ibom State, rejecting the null hypothesis that TIN does not militate against tax evasion in Nigeria (case study of Akwa Ibom State board of internal revenue). The study recommended that a holistic tax education should be carried out in order to keep the teeming taxpayers abreast of Taxpayer Identification Number programme in the state and also more registration centers should be created for ease of access and registration of taxpayers for the taxpayer identification number programme as oppose to one and only registration center in Uyo to consolidate the TIN programme in the State. Keywords: tax identification number, tax evasion, internally generated revenue, board of internal revenue, total revenue.
1. INTRODUCTION 1.1 Background to the Study Taxpayer Identification Number (TIN) is a 10 (ten) digit number that is unique to each taxpayer in Nigeria, for every individual and corporate organization that is, taxable entities that earn a steady income. The Taxpayer Identification Number (TIN) is a platform which is meant to harmonize taxpayer identification and registration in Nigeria; it will create
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