^{1<\/sup>Felix Ogheneochuko Alade and 2<\/sup>Prof. Ofiafoh Eiya<\/strong><\/p>\n\n\n\n}

ABSTRACT<\/strong><\/p>\n\n\n\n

This study was carried out to examine the relationship between tax exempts and personal income tax Compliance in Nigeria. The study employed the use of time series data for period of seven years from 2011 to 2017 to examine the impact of these variables in Nigeria. From the analysis carried our it was observed that Pencom which is given as total annual individuals\u2019 pension contributions was found to have a negative impact on Personal Income compliance which is the actual PIT Revenue divide by budgeted PIT revenue, multiply by 100 (PIT Gap). National health insurance scheme contribution was found to have a positive relationship with PIT Gap. National housing found contributions was found to have a positive relationship with personal income tax revenue. Total annual individual gratuities contributions were found to have a negative relationship with PIT Gap. It was therefore recommended that Joint Tax Board (JTB) should issue circulars to discourage abuse of PIT exempts, as most taxpayers exploit it to avoid PIT, by mandating Pension fund administrators to deduct and remit PIT on any deductions on AVC withdrawer after five years of contributions. Also the current state of the NHIS which favors only employees of the Federal and State Governments has limited coverage and should be discouraged, by domiciling the scheme in all the States of the federation as a micro NHIS to accommodate the informal sector, hereby attracting the informal sector into the PIT net. Prudent management and productive use of tax revenue to better the lots of the citizens should be encouraged and public waste of funds should be drastically reduced or cut-off.\u00a0<\/p>\n\n\n\n