Tax burden and the growth of shadow economy in Nigeria: A focus on the corporate tax rate and net taxes on products

The purpose of taxation is to raise revenue pay for public goods. question how tax mix affects the size underground economy one most important issues its application policy. However, empirical evidence on this subject limited and also somewhat ambiguous. Empirically, study specifically aims evaluate effect corporate rate net taxes product shadow growth in Nigeria during period 1996–2020. It employed augmented Dickey–Fuller (ADF) Phillips Perron tests check unit roots. Thereafter, Autoregressive Distributed Lag model was determine short- long-run effects. findings show that rates products induced much less while have a positive impact short-run. Keywords: Autoregressive-distributed lag model, rate, taxes, products, economy;