Tax Evasion and Its Impact on Government Revenue Generation in Oyo State

State government is faced with varieties of difficulties to source adequate revenue from federal government and internally generated revenue; such problems are gear wheel to the smooth running of state government administration. Thus, the objective of this research was to analyze the extent to which tax evasion had affected revenue generation of Oyo state government. The researcher used secondary method of data collection to generate the needed data. The following were some of the findings which include; that estimated revenue positively and strongly contributes to tax evasion in Oyo state, also the study shows that, higher income tax rates increase the rate of currency holdings which in monetary approach manifest the rise in tax evasion, religious teaching should inculcate responsibility to pay tax accurately. The researcher therefore recommended that the state government should embark on massive public enlightenment campaign and adequate utilization of tax revenues on public goods to discourage tax evasion and also the reduction in tax rate, Efforts should be made by government at sensitizing the populace on the seriousness of tax evasion and the penalties attached to tax violators amongst others.