THE EFFECTS OF TAX EVASION AND AVOIDANCE ON SUSTAINABLE INFRASTRUCTURAL DEVELOPMENT IN ADO-ODO OTA LGA OF OGUN STATE

Sustainable infrastructural development 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 to enhance this “Social Overhead Capital”, it 

still currently does not meet the requirement of economic development. The study 

emphasizes on the extent the tax irregularities hinder sustainable infrastructural 

development, the short and long-run effects and the possible causes of tax evasion 

and avoidance, drawbacks of tax revenue, 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 and 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 the quality 

and condition of infrastructures. It was recommended amongst others that we 

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.