TAX COMPLIANCE

This study investigates the determinants of tax compliance in Nigeria, focusing on tax morale, trust in government, moral ethics, tax knowledge, tax rates, and the system of tax payment. Utilizing a comprehensive data analysis approach with a sample size of 100 .The research examines the influence of these variables on taxpayer behavior. The findings reveal that while tax compliance is relatively high among Nigerians, there is significant distrust in government institutions. Moral ethics positively influence tax compliance, although this relationship is not statistically significant. Conversely, increased tax knowledge is associated with lower tax compliance, suggesting that better-informed taxpayers may exploit loopholes or become more critical of the tax system. Tax rates have a positive and significant impact on compliance, indicating that perceived fairness in tax rates encourages adherence to tax obligations. The system of tax payment, while positively related to compliance, does not show a statistically significant impact. These insights suggest that enhancing tax compliance in Nigeria requires a multifaceted strategy that includes building trust in government, promoting ethical standards, designing effective tax education programs, and ensuring fair tax rates. The study concludes with recommendations for policymakers and highlights areas for further research to deepen the understanding of tax compliance dynamics in Nigeria

This study examines the determinants of tax compliance among small and medium enterprises (SMEs) in Nigeria. The research investigated the influence of six key factors—tax knowledge and awareness, taxpayer attitude and perception, multiple tax
rates, government transparency and accountability, enforcement and penalties, and complexity of the tax accounting system—on tax compliance behavior. A quantitative research design was adopted, and data collected from 142 SMEs were analyzed using descriptive statistics, correlation, and multiple regression techniques through E-Views 14.0.
The regression results revealed that taxpayer attitude and perception had a negative and significant effect on compliance, implying that negative perceptions about the tax system reduce taxpayers’ willingness to comply. Conversely, multiple tax rates and government transparency showed positive and significant effects, indicating that simplified rate structures and transparent governance enhance compliance. Tax knowledge, enforcement, and system complexity were not statistically significant, suggesting that knowledge and penalties alone may not guarantee compliance without trust and institutional integrity. The model was statistically significant (F-statistic = 5.45, p < 0.01) with an adjusted R² of 0.16, confirming a moderate explanatory power. Diagnostic tests showed no autocorrelation or heteroskedasticity, ensuring model reliability.
The study concludes that tax compliance among SMEs in Nigeria is primarily driven by institutional and perceptual factors rather than enforcement. It recommends improving government transparency, simplifying tax structures, and promoting positive taxpayer attitudes to enhance voluntary compliance

The study employed a survey research design and used self-administered questionnaires. A sampling design of 100 respondents was selected which composed of 20 wielding shop owners, 20 tailoring shop owners, 20 transportation company, 20 shoe making shop owners and 20 technicians in Edo State. Findings from the study show that electronic tax system has improved tax compliance as it is easy for tax payers to assess their tax obligation accurately and enable them file their returns on time. On other hand, the new system has also helped ease the work of EIRS staff and to a small extent led to an increase in tax collection in Edo State. Findings from the study also show that the attitude of tax payers and that of EIRS staff towards the use of e-tax is positive as a considerable number viewed the use of the system as being good. Findings from the study further indicate that the new system has increased costs on the tax payers side. Findings from the study also show that the current e-tax servers are overwhelmed by the number of users hence they are so slow. Findings from the study further show that the electronic tax filing system has the potential of increasing tax compliance and revenue collection in EIRS but a lot has to be done to avert the obstacles that may not make it possible.

This study investigates the tax burden on income earners in Edo State, Nigeria, with a view to understanding its variation across income groups and its implications for tax compliance and revenue generation. The study is driven by concerns that persistent fiscal pressure, low disposable income, and perceived inequities in tax administration undermine voluntary compliance and economic productivity. The specific objectives were to examine variations in tax burden among different income groups, identify the types and rates of taxes imposed on income earners, assess taxpayers’ insights and compliance behaviour, and highlight challenges faced by individuals in fulfilling their tax obligations. A descriptive survey design was adopted, employing both primary and secondary data. Structured questionnaires were administered to 400 respondents drawn from
civil servants, self-employed persons, and private-sector workers across Edo State, selected through stratified random sampling. Data were analyzed using descriptive statistics and regression techniques. Findings revealed that lower-income earners bear a proportionately higher effective tax burden relative to their income, while inconsistencies in tax administration and inadequate taxpayer education contribute significantly to low compliance levels. The study recommends policy
measures such as tax rate rationalization, improved taxpayer enlightenment, digitalized tax administration, and the enforcement of fairness and transparency principles to enhance compliance and ensure sustainable revenue generation for the state. These findings underscore the need for a more equitable and efficient tax system capable of balancing government fiscal objectives with citizens’ economic welfare.

This study investigated the factors affecting voluntary tax compliance by SMEs. Specifically, the study sought to establish the effect of complexity of Nigerian tax system, SMEs perception of tax fairness, tax education and awareness, external stakeholders, cultural and socioeconomic factor on voluntary tax compliance by SMEs. The study used the primary research instrument through the administration of questionnaire to source data needed for the study. The study targeted a sample of two hundred (200) respondents, in which a total of 200 questionnaires were distributed and same number (200) was filled, retrieved, cleaned and used for this study. The data collected was analyzed using SPSS version 20.0 and descriptive statistics was used to present the results while regression test was employed to make findings on the research hypotheses. It was revealed that: the complexity of Nigerian tax system is not significantly related to voluntary tax compliance by SMEs; SMEs’ perception of tax fairness is significantly related to voluntary tax compliance by SMEs; tax education and awareness is not significantly related to voluntary tax compliance by SMEs; external stakeholder is not significantly related to voluntary tax compliance by SMEs; and cultural and socioeconomic factor is significantly related to voluntary tax compliance by SMEs. Based on these findings, it was recommended that: it is essential to invest in more comprehensive and targeted tax education programs for SMEs; tax authorities should strive for transparent and equitable tax policies and practices; simplifying tax procedures and reducing bureaucratic hurdles can make it easier for SMEs to comply voluntarily; policymakers should cultural and socioeconomic aspects when designing tax policies and interventions; and it is still crucial for tax authorities to engage with external parties such as business support organizations, consultants, and tax professionals.