ABSTRACT
This study was on the causes and effect of Tax Evasion and Avoidance on the economy (Board of Internal Revenue in Abia State). The major objective of the study is to identify the causes and effect of Tax Evasion and Avoidance in the state and how it is done. It also the aim of the study to suggest ways of at least minimizing this ugly incidence in the state, and the study sought the opinions of the staff (Senior and Junior) of the organization. The population size of the research work is 120 which includes the senior official and some staff of inland revenue department of ministry of finance make up the sample frame. The sources of this data was both primary and secondary source which includes interview, questionnaire, textbook, internet search, newspaper etc. The researcher uses simple percentage method in analyzing the data and the major findings is that the imposition of high tax rate will drastically reduce the level of income and profit on the part of the tax payer. From the findings, the researcher, therefore recommends that government should find a way of checking and balancing tax payments so as not to discourage tax payment on the part of the payers.