Taxpayers Education and Tax Compliance in Lagos State

  • Adeleke C. Adekoya Afe Babalola University Ado-Ekiti
Keywords: Taxpayer Education, Tax Compliance, Taxpayer, Internally Generated Revenue, Lagos State

Abstract

This study examines the relationship between taxpayer education and tax compliance in Lagos State, Nigeria. A cross sectional survey was conducted on a sample of individual taxpayers in Lagos State. Primary data was collected using a questionnaire with a five-point Likert scale. The sample was 400 individual taxpayers that were purposively selected. The data collected was presented with the use of descriptive statistics, while both simple linear regression and multiple regression were used in the estimation of the regression models developed for the study. The results from the analyses revealed that taxpayer education has a significant, positive effect on tax compliance. The study, therefore, recommends that the Lagos State government should improve on its taxpayer education programme, by putting in place adequate policies and machinery to promote taxpayer education in order to better enlighten taxpayers and ultimately improve tax compliance and hence its internally generated revenue.

References

Adebisi, J. F and Gbegi, D.O (2013). Effect of Tax Avoidance and Tax Evasion on Personal Income Tax Administration in Nigeria. American Journal of Humanities and Social Sciences 1(3), 125-134

Ahmed R. B. (2004). Relationship between Tax Compliance Internationally and Selected Determinants of Tax Morale. Journal of International Accounting, Auditing and Taxation 13, 135–143.

Akinsanmi, G. (2012, March 3). Lagos to prosecute 5.3 million Tax Evaders. Thisday Live. Retrieved on July 12, 2012 from http://www.thisdaylive.com/articles/lagos-to-prosecute-5-3m-tax-evaders/111954/.

Alabede, J. O., Ariffin, Z. Z., and Idris, K. M. (2011) Determinants of Tax Compliance Behaviour: A Proposed Model for Nigeria. International Research Journal of Finance and Economics, 78.

Alabede, J. O., Ariffin, Z. Z., and Idris, K. M. (2011). Individual taxpayers’ attitude and compliance behaviour in Nigeria: The moderating role of financial condition and risk preference. Journal of Accounting and Taxation 3(5), 91-104.

Allingham, M., Sandmo A. (1972). Income Tax Evasion: A Theoretical Analysis. Journal of Public Economics, 1(3-4), 323-338.

Alm, J. (1999). Tax Compliance and Tax Administration. Retrieved July 17, 2012 from http://aysps.gsu.edu/isp/files/2_Tax_Compliance_and_Administration.pdf.

Alm, J., Kirchler, E., Muehlbacher, S., Gangl, K., Hofmann, E., Kogler, C., and Pollai, M. (2012). Rethinking the Research Paradigms for Analysing Tax Compliance Behaviour. Tulane Economics Working Paper Series, 1210, 2012.

Barbuta-Misu, N. (2011). A Review of Factors for Tax Compliance. Annals of “Dunarea de Jos” University of Galati Fascicle I. Economics and Applied Informatics. Retrieved on July 12, 2012 from www.ann.ugal.ro/eco/Doc20011_1/Nicoleta_BarbutaMisu.pdf.

Becker G. S. (1968). Crime and punishment: An economic approach. Journal of Political Economics, 76(2), 169-217.

CBN (2011). Central Bank of Nigeria Annual Report, 2011.

Chau G. and Leung P. (2009). A critical review of Fischer tax compliance model: A research synthesis. Journal of Accounting and Taxation, 1(2), 34-40. Retrieved May 22, 2012 from http://academicjournals.org/jat/PDF/Pdf2009/July/ChauandLeung.pdf.

Djawadi, B. M. and Fahr, D. (2012). The Impact of Tax Knowledge and Budget Spending Influence on Tax Compliance. IZA Discussion Papers 7255, Institute for the study of Labour.

Feld, L. P., & Frey, B. S. (2003). Deterrence and Tax Morale: How Tax Administration and Taxpayers Interact. OECD Papers, 3(10), 1-19.

Ibikunle P. and Onuegbu N. F. (2011). The Prevalence of Work-Related Neck Pain and Low Back Pain among Tailors in Ogbete Market Enugu State. Journal of Medical Research and Technology 6(2).

Kasipillai J. and Abdul Jabbar, H. (2006). Gender and Ethnicity Differences in Tax Compliance. Asian Academy of Management Journal, 11(2), 73–88.

Kendrick M. S. (1939). The Ability-to-Pay Theory of Taxation. The American Economic Review. 29(1), 92-101.

Kirchler E., Hoelzl E., and Wahl I. (2008). Enforced versus voluntary tax compliance: The “slippery slope” framework. Journal of Economic Psychology, 29(2), 210–225

Kirchler, E., Muehlbacher, S., Kastlunger, B. and Wahl, I. (2007). Why Pay Taxes? A Review of Tax Compliance Decisions. International Studies Program, Working Paper 07-30

Misra, R. (2004). The Impact of Taxpayers Education on Tax Compliance in South Africa. Unpublished Master’s Thesis, University of Kwazulu-Natal, South Africa.

Obasi, R. and Ekwueme, C. (2011). Investors’ Perceptions of the Relevance of Credit Transactions Disclosure in Income Statement. International Research Journal of Finance and Economics 64

Oladele, R., Uduma, S. A. U., and Aderemi A. A. (2013). Revenue Generation and Engagement of Tax Consultants in Lagos State, Nigeria: Continuous Tax Evasion and Irregularities. European Journal of Business and Social Sciences, 1 (10), 25-35.

Olowookere, J. K and Fasina, H. T (2013). Taxpayers’ Education: A Key Strategy in Achieving Voluntary Compliance in Lagos State, Nigeria. European Journal of Business and Management, 5(10).

Onwuka J. R. (2011). Development of Entrepreneurial Skills Assessment Inventory of Youths, a Challenge to Gender Issues in Entrepreneurship Education. International Journal of Business and Management Research, 1(9), 578-586.

Organisation for Economic Co-operation and Development (2008). Monitoring Taxpayers’ Compliance: A Practical Guide Based on Revenue Body Experience. Paris: OECD Publishing.

Organisation for Economic Co-operation and Development (2013). Building Tax Culture, Compliance and Citizenship: A Global Source Book on Taxpayer Education. Paris: OECD Publishing.

Otusanya, O. J., Arowomole, S. S. A., and Adeyeye, G. B. (2013). An Examination of Tax Leakages in Government Tax Revenue: The Case of Nigeria. International Journal of Economics and Accounting, 4 (1), 93-122.

Palil, M. R. (2010). Tax Knowledge and Tax Compliance Determinants in Self-Assessment in Malaysia (Unpublished Doctoral Dissertation). University of Birmingham.

Palil, M. R. and Mustapha, A. F. (2011). Determinants of Tax Compliance in Asia: A case of Malaysia. European Journal of Social Sciences. Retrieved May 22, 2012 from http://www .eurojournals.com/EJSS_24_1_01.pdf.

Saunders, M., Lewis, P., & Thornhill, A. (2009). Research Methods for Business Students. (5th ed.), Harlow, Pearson Education.

Shodade, B. (2012). Welcome Address of the Permanent Secretary, Ministry of Economic Planning and Budget, Lagos State; at the 2012 World Population Day Celebration. Retrieved on July 12, 2012 from http://www.lagosstate.gov.ng/news2.php?k=1948.

Shodipo, B. (2014). Press Briefing: Commemoration of the 3rd year, 2nd Term of Babatunde Fashola Administration in Lagos State. Retrieved on August 16, 2014 from http://www.lagosstate.gov.ng/news2.php?k=3438

Torgler B. (2003). Tax morale: Theory and empirical analysis of Tax compliance (Unpublished Doctoral Dissertation). University of Basel, Switzerland.

Torgler, B and Schneider, F. (2005). Attitudes Towards Paying Taxes in Austria: An Empirical Analysis. Empirica, 32.

United Nations (2000). Efficiency and Effectiveness of Revenue Administration. Ad Hoc Expert Group Meeting on Strategies for Improving Resource Mobilization in Developing Countries and Countries with Economies in Transition. Retrieved on July 18, 2012 from http://unpan1.un.org/intradoc/groups/public/documents/un/unpan004714.pdf

Verboon P. and Van Dijke M. (2007). A Self-Interest Analysis of Justice and Tax Compliance: How Distributive Justice Moderates the Effect of Outcome Favorability. Journal of Economic Psychology, 28, 704–727.

Yamane, T. (1967). Statistics: An Introductory Analysis. (2nd ed.), New York, Harper and Row.

Published
2019-07-04
How to Cite
Adekoya , A. C. (2019). Taxpayers Education and Tax Compliance in Lagos State. Global Journal of Accounting, 5(1), 16-26. Retrieved from http://jsrd.unilag.edu.ng/index.php/gja/article/view/457
Section
Articles