Direct Assessment, Pay-As-You-Earn (PAYE) and Internally Generated Revenue in Ondo State
This study analyzes the effect of personal income tax on internally generated revenue in Ondo State. The specific objectives are to examine the individual contributions of the components of personal income tax on internally generated revenue in Ondo State. This study used both primary sources and secondary sources of data. The secondary data focused on secondary data from eight years record from Ondo State Board of Internal Revenue (OSBIR), while the primary data employed survey through the aid of questionnaires distributed across the three senatorial districts (18 LGAs) of the state. Ordinary Least Square (OLS) regression analysis was adopted to estimate the two models. The findings show that PAYE and other sources of taxes were statistically significant on internally generated revenue in Ondo State Meanwhile, the ability of state government to bring in more payers into the tax net and deploy effective collection of PAYE to enhance revenue have positive and statistically significant impact on IGR in the state. It is, therefore, recommended that the Ondo State government deploy a holistic approach to revenue collection and taxation within the state. This approach should aim to enhance internally generated revenue while minimizing bureaucratic fraud among revenue collection officers.
Keywords: PAYE, direct Assessment, Tax Net, Effective Collection System, IGR, Ondo State
Citation: Adegun, O.S., Akinuli, B.O., & Ogunlade, D.A. (2025). Direct Assessment, Pay-As-You-Earn (PAYE) and Internally Generated Revenue in Ondo State. International Journal of Innovative Research in Accounting and Sustainability, 10(1), 117-129.