This study was designed to identify the effects of tax evasion on government revenue generation in Oyo State. A structured questionnaire was used to collect data from a sample of one hundred and sixty five (165) respondents who were randomly selected across the state while secondary data were gathered from National Bureau of Statistics (NBS), Office of Budget and Economic Planning, and Internal Revenue Office using data from 2011- 2016. Data collected were analysed using descriptive and inferential statistics tools with the aid of Statistical Package for Social Science SPSS, window 23. The findings showed that, the amount of Internally Generated Revenue (IGR) between 2011 and 2016 did not meet the estimates revenue as it was expected. The results also revealed that, the tax evasion has adverse effect on government revenue generation in Oyo state which typically results in revenue loss. The implications of these results may cause inevitable distraction to the potential performance of government in the public sector; therefore, threatening its competence to finance public expenditure and undermining legitimacy of government due to non compliance to pay tax become significant to substantial budget deficit. We therefore, recommended that, the government should embark on massive public enlightenment campaign and adequate utilization of tax revenues on public goods to discourage tax evasion and reduction in tax rate
Keywords: Effects, Estimated Revenue, Government, Tax Evasion
