Evaluation of Public Accountability and Tax Culture among Tax Payers in Nigeria (original) (raw)
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Government Accountability and Voluntary Tax Compliance in Nigeria
Research Journal of Finance and Accounting, 2012
This study examines the nexus between government accountability and voluntary tax compliance based on the theoretical framework that there exist a relational fiscal/social contract between the state and the citizens. Specifically, the hypothesis that voluntary tax compliance is influenced by the individuals' perception of government accountability was specified and tested. Primary data elicited using structured likert scale questionnaire was used for the study while the Z-scores were computed and used to test the hypothesis. The Findings were in the affirmative indicating that the citizens' perception of government accountability is an instrumental factor that shapes the emergence and maintenance of tax morale resulting in voluntary tax compliance. The study recommends is that to reduce tax gap, voluntary compliance should be motivated by improving the quality of public governance.
TAX POLICY AND TAX COMPLIANCE IN NIGERIA: EVIDENCED FROM KWARA STATE
POLAC INTERNATIONAL JOURNAL OF ECONS & MGT SCIENCE (PIJEMS, 2024
Over the years, many states in Nigeria have faced persistent challenges of low tax compliance, despite the presence of established tax policies and enforcement mechanisms. Inefficiencies in taxpayer services and ineffective policy implementation have contributed to widespread non-compliance, raising concerns about the adequacy of current tax administration practices. In light of these challenges, this research endeavor seeks to investigate the impact of the execution of tax policies on tax compliance within the jurisdiction of Kwara State. A quantitative survey research methodology was employed, specifically targeting personnel affiliated with the Kwara State Internal Revenue Service (KWIRS). To ensure adequate representation across various hierarchical tiers and functional areas within KWIRS, a stratified random sampling method was utilized, culminating in a sample size of 287, as determined by Taro Yamane’s statistical formula. Primary data was accrued through the distribution of questionnaires, with subsequent analysis conducted employing PLS-SEM. The result indicates a statistically significant positive correlation between the implementation of tax policies and tax compliance. This study concludes that the efficacious execution of tax policies is imperative for the enhancement of tax compliance within Kwara State. Properly enforced and meticulously structured policies, augmented by effective taxpayer services, are instrumental in fostering elevated compliance rates, which are essential for bolstering revenue generation. To mitigate the challenge of suboptimal tax compliance, this study recommends that the KWIRS prioritize the consistent enforcement of tax policies. Additionally, ongoing training and capacity building for tax officials should be prioritized to improve the effectiveness of policy implementation and enforcement, ultimately fostering a culture of compliance among taxpayers.
THE EFFECT OF TAX COMPLIANCE AND GOOD GOVERNANCE IN NIGERIA
Kampala international University journal, 2020
Abstract: The study examined the effect of tax compliance and good governance in Nigeria. It specifically investigated the effect of voluntary tax compliance on public accountability and transparency, enforcement tax compliance on government efficiency, tax avoidance on corruption control and tax evasion on good governance in Nigeria. This Study is predicated on the Traditional or Deterrence Theory of taxation, Political Legitimacy Theory, and Theory of Planned Behaviour. Secondary data source was explored in presenting the facts of the situation. Secondary data source was explored in presenting the facts of the situation. The secondary data were obtained from relevant literatures, Central Bank of Nigeria Statistical Bulletin and National Bureau of Statistics publications among other. Data were tested using the Ordinary Least Square Linear Regression model. From the Central Bank of Nigeria Statistical Bulletin and National Bureau of Statistics, information concerning voluntary tax compliance, compulsory tax compliance, tax avoidance and tax evasion were extracted. The findings revealed among other things that all the coefficients of the explanatory variables in model are all statistically significant to good governance except tax evasion. The study concluded that, voluntary and compulsory tax compliance are both component of tax compliance to enhance good governance for the development of the country. The study then recommends among others, that to ensure sustainable good governance , generation of tax revenue must be sufficient by complying with tax , efficiently and judiciously utilized. The government should pay attention to encouraging her citizens to build trust in it by tax accountability, ensuring that the promises made to the citizens are delivered.
Tax Administration and Tax Revenue Generation in Nigeria: Taxpayers Perspective
International Journal of Latest Engineering and Management Research (IJLEMR), 2017
The three-tiers of the governments (federal, state, and local governments) in Nigeria have been struggling to fulfill their obligations to their citizens due to the declining in the tax revenue generation. The dependency of the country on the oil and gas sector for many decades had caused the government not to pay enough attention to other sources of revenue generation such as tax revenue from non-oil and gas sectors. The continuing falling of the crude oil prices in the world oil market resulted in declining revenue generation for the government on one hand and constant increments in the infrastructural developments and expenditure on other social developments on the other hand have necessitated the government to look at the non-oil sector for revenue generation. The government is having problem generating revenue through taxes. And since tax revenue generation depends on the tax administration in place hence this study examined the effect of tax administration on tax revenue generation in Nigeria. Survey research design was employed and structured questionnaire was developed and used to collect data for this study. One hundred and twenty six (126) participants participated in the study. Collected data were processed with the help of SPSS tool and Descriptive statistics and simple regression statistical techniques were used to analyze the data. Though, the hypothesis testing indicated that tax administration does not have significant effect on tax revenue generation in Nigeria. But the descriptive analysis indicated that tax payers are not satisfied with the enlightenment of policy change in the tax administration. The study concluded that effective and efficient tax administration is a prerequisite for improving tax revenue generation in Nigeria. The study recommended that the government should work on improving variables under tax administration that attracted less than sixty percent (60%) favorable rating.
2014
Taxation, in virtually all countries of the world is a major source of revenue to their Government. Taxation is a dynamic subject which grows with the constant in the economic environment in which it operates, that is the most reason the policy guiding it need to be reviewed constantly. Taxes are paid by taxpayers not only because of the feedback they get in terms of provision of social amenities by the Government who happens to be the custodian and administrator of taxes but because they are forced to do so. The Nigerian Government is to be held accountable for the taxes and other revenues received from the populace but in the contrary, the Nigerian tax system is faced with the issue of nonaccountability as regards the provision of fundamental infrastructures and basic amenities for the taxpayers who have to pay through their noses most of the time because of the difficult survival terrain in the country. Nigeria is governed by federal system so, its fiscal operation is also in line with the same principle constituting a serious implication on the form of the management of the system. This study examines how tax is being administered in Nigeria and attempts to look the level of voluntary tax compliance based on the theory that there is a mutual relationship and fiscal as well as social contract between the country and its citizens and how effective is the enforcement strategy responsibility in tax administration in Nigeria.
Tax System Behaviour Justice and Voluntary Compliance Culture in Nigeria
Dynamics of Taxation and Nigerian Economy, 2023
Taxation is the most important and obvious source of funding for governments around the world. Any service that benefits the public will necessitate taxation to cover at least a portion of the costs. Nigeria has a range of alternatives for financing its public expenditures and implementing its fiscal policies. However, tax compliance and remiance have been reported to be relatively low in Nigeria, where tax revenue is the primary source of locally generated revenue. This study then sought to examine the effects of tax system, tax behaviour and tax justice on voluntary compliance. This study reviewed the following theories: Classical Theory of Tax Compliance; Economic Deterrence Theory; Fiscal Exchange Theory; Comparative Treatment Model; Political Legitimacy Theory; Behavioural Economics Theory; and Theory of Planned Behaviour. The primary data was gathered and analysed with Google Forms. From the findings, the study revealed that implications of tax evasion make Nigerians to be tax compliant. However, it can be concluded that the inefficient Nigerian tax system, tax behaviour and tax justice yields low tax compliance. Therefore, this study recommends that Government should continue to provide basic amenities to its citizens and be accountable, as this will convince citizens that tax monies are being utilised; Tax education should be carried out frequently. Tax administrators should administer taxes within the ambit of the law; while the use of technology and professionally trained employees should continue to be encouraged. Tax authorities should endeavour to work with other agencies such as Corporate Affairs Commission (CAC), Independent Corrupt Practices Commission (ICPC) and Economic and Financial Crime Commission (EFCC) aid citizens tax compliance; and tax administrators should ensure that updated records of individuals and companies are maintained.
Tij S Research Journal of Social Science Management Rjssm, 2014
Taxation, in virtually all countries of the world is a major source of revenue to their Government. Taxation is a dynamic subject which grows with the constant in the economic environment in which it operates, that is the most reason the policy guiding it need to be reviewed constantly. Taxes are paid by taxpayers not only because of the feedback they get in terms of provision of social amenities by the Government who happens to be the custodian and administrator of taxes but because they are forced to do so. The Nigerian Government is to be held accountable for the taxes and other revenues received from the populace but in the contrary, the Nigerian tax system is faced with the issue of nonaccountability as regards the provision of fundamental infrastructures and basic amenities for the taxpayers who have to pay through their noses most of the time because of the difficult survival terrain in the country. Nigeria is governed by federal system so, its fiscal operation is also in line with the same principle constituting a serious implication on the form of the management of the system. This study examines how tax is being administered in Nigeria and attempts to look the level of voluntary tax compliance based on the theory that there is a mutual relationship and fiscal as well as social contract between the country and its citizens and how effective is the enforcement strategy responsibility in tax administration in Nigeria.
Multiple Tax Practices and Taxpayers' Non-Compliance Attitude in Nigeria
2013
The issue of multiple tax practices has always generated and continues to generate controversy among the tiers of Government in Nigeria. Whereas tax practitioners and government agencies claimed the existence of tax laws and policies governing the taxes and levies collectible by each tier, a regime of illegal tax collections still subsists. Survey data obtained from the responses of 209 respondents with the aid of a structured questionnaire were used to provide empirical evidence of the effects of multiple tax practices on taxpayers’ compliance attitudes. Findings from the correlation analysis revealed that multiple tax practices significantly affect taxpayers’ compliance attitude, and that multiple tax practices in Nigeria are corollaries of corruption, poor tax administration, greed and unfair revenue allocation formula. Hence, we suggest a distinct dichotomy of the different taxes collectible by each tier of Government. This will significantly aid an efficient and effective tax s...
Journal of Namibian Studies, 2023
This study investigated the nexus between tax audit and taxpayers' compliance in South West, Nigeria. The study adopted a descriptive survey design with the aid of a structured questionnaire to elicit the needed information from the respondents. The population, which equally represented the sample size was all the 93 Audit and Administrative staff of the headquarters of the State Board of Internal Revenue Service (SBIR) of Ekiti, Osun and Oyo States. Descriptive and inferential statistics were used to analyse data. The hypothesis was tested with Pearson Correlation and multiple linear regression. The result indicated that tax audit has a positive and significant effect on both the voluntary and non-voluntary taxpayer's compliance in Southwest, Nigeria with their respective coefficient and significant values of 0.672 and 0.000<0.05 for voluntary tax compliance and 0.586 and 0.000<0.05 for non-voluntary tax compliance. The study, therefore, recommended that the state governments should intensify more efforts on tax audits through the employment of more competent staff and periodic training to enhance its significant effect on tax compliance level in the country.
Journal of Culture, Society and Development, 2016
This study empirically assessed procedural justice and fiscal exchange across the three main cultural groups in Nigeria. Targeted population was individual taxpayers (n=500) using mainly questionnaire for its primary data. Data were statistically analysed with SPSS. Result shows favourable perception of each of the psychological factors as well as high level of tax compliance. The three variables are however found to vary significantly across cultures thus establishing relevance of culture on each psychological factors and tax compliance. Other factors found relevant are taxpayers’ bio-data like age, gender, religion, as well as employment category as a measure of opportunity to evade tax. On a general note, major finding from the study agrees with findings from earlier researches. It however concluded that model that can ensure sustainable tax compliance would be a comprehensive one that considers all economic, social, cultural, psychological factors. Recommendations were made to m...