LITIGATION AND PERSONAL INCOME TAX REVENUE GENERATION IN RIVERS STATE.

This study examined the impact of litigation on personal income tax revenue generation in Rivers State using evidence from the Internal Revenue Service of Rivers State. The study aimed to determine the relationship between tax litigation measures and personal income tax revenue in Rivers State. The sample for this study was 57 staff of the Rivers State Internal Revenue Services, with adequate knowledge of the variables under study. Data were collected from respondents (staff) using questionnaire instruments that were found to be reliable with Cronbach’s alpha. Descriptive statistics, such as frequency and percentages, were used to facilitate the conversion of raw data into meaningful form that was easy to understand and interpret in relation to the study variables. The mean and standard deviation were used to answer research questions 1 and 2. The hypotheses were tested to explain the relationship between the dependent and independent variables using the Pearson product moment correlation coefficient at the 0.05 alpha level of significance. This study established that:  There is a positive and strong significant relationship between litigation and personal income tax revenue (such as personal income and capital gains) in Rivers State. The study concludes and recommends that enforcement measures, especially the use of litigation, are key in the realization of personal income tax revenue. Hence more administrative and enforcement measures should be in place for the Internal Revenue Service of Rivers State to boost revenue generation.