Pages: 56-66

Abstract

Tax income is one of the major sources of revenue for all the three tiers of government in Nigeria. Ever since global fall in oil price, governments at all levels have been striving to increase their internally generated revenue. Tax administration has been characterized with a lot of malaises which encourage gross tax evasion and low compliance. Federal and state governments adopted the option of engaging tax agents or tax consultants in collection of taxes in their own jurisdiction. The involvement of tax consultants has yielded positively in increasing the level of compliance and reduces the rate of tax evasion and tax avoidance. With the low tax base of the last tier can tax consultants be involved in collection? In lieu of this, this paper discusses prospect, problem and settlement of tax consultancy service in revenue generation in grassroots in Nigeria. The study hinged on optimal tax theory and theory of outsourcing. Descriptive research is used. Hypotheses were formulated and tested using chi square of Statistical Packages for Social Science. It was concluded that tax consultancy has great impact on revenue generation in the grassroots. The paper recommended the use tax consultants in the grassroots to foster revenue generation at the grassroots and tax consultancy service should be given legal backing.