EFFECT OF INTERNAL AUDIT AS A MEASURE FOR PERFORMANCE EVALUATION IN AN ORGANIZATION ( A CASE STUDY OF UITH ILORIN )

A well-organized society, for instance a country or state government owe to the people it governs some fundamental obligations. These obligations are in the forms of provisions of basic social amenities such as good roads, health, security of lives and properties, shelter, good water etc. The citizens on their own part owe the government by making equitable contributions in the form of levy on tax. It is against these background that government levy taxes on its citizen to pursue the above stated objectives it owns to the people (Ola, 2008). Kolawole (2006) Define tax as a compulsory Levy imposed by the government on individuals and business organizations and paid by them to the government. One of the responsibilities of a good citizen as usually state in the constitution is tax payment, but saddens to note that many shy away from this responsibility, in other words, individuals and business organizations device different illegal strategies in order not to pay tax. Tax evasion is a deliberate attempt not to pay tax. is there for an illegal act and the evader is regarded as Criminal in law kolawole (2006).This is one of the most universal social malaise entering adequate revenue generation, thereby affecting the proper administration of government at various levels. The acid rest of an efficient government is its ability to generate sufficient revenue to finance its enormous expenditure, and all things being equal tax should be in the forefront in government revenue generation, but on the contrary tax as always contributed miserly to government revenue. Undoubtedly there has been the aftermath of excessive tax evasion. Empirical evidence have shown that the uncooperative and unprogressive attitude of our citizen towards tax payment result in major financial problems of government. Obviously it is an agreed fact, that payment of taxes is among the basic things needed for the survival of any society. The hallmark of technology advancement, economic growth, social satisfaction, the people's need and value to the society center exclusively within the armpit of taxation. (Nnamdi 2017). A decline in the price of oil in recent years has led to decrease in the funds available for distribution to the Federal Government and to the state government. The name for state and local government to generate adequate revenue from internal sources has therefore become a matter of extreme urgency and importance. This need underscores the eagerness on the part of state and local government and even the Federal Government to look for new source of revenue or to become aggressive and innovative in the mode of collecting revenue from existing sources (Aimurie (2012). Aguolu (2004) State that though taxation may not be the most important source of revenue to the government in terms of the magnitude of revenue derivable from taxation, however, taxation is the most important source of revenue to the government from the point of view of certainty and consistency of taxation. Further mentioned that taxation is hence the most important source of government revenue. Owing to the inherent power of the government to impose taxes, the government is assured at all times of its tax revenue no matter the circumstances. Tax evasion is generally referred to as illegal practice to escape from taxation. To this end, taxable income, profit liable to tax or other taxable activities are concealed, the amount or the source of income are miss represented or tax reducing factor such as deduction, exemption or credit are deliberately overstated (Alm.vazquez.chiumya (2001) and (2006). Tax evasion and its sister tax avoidance hockey fundamental problems of tax administration in a developing country like Nigeria because, all forms of taxes in Nigeria to some extent avoided or evaded because the administrative machinery to ensure effectiveness is weak. As a result of diversities and complexity in human nature and activities, no tax law can capture everything hence, loopholes will exist and can only be reduced or eliminate true policy reform. Aguolu (2004).