DETERMINANTS OF PERSONAL INCOME TAX COMPLIANCE IN NIGERIA
Abstract
This study examines the determinants of personal income tax compliance in Nigeria. Its justification arose from the dearth of research on personal income tax compliance in Nigeria and the need to investigate what factors really account for personal income tax compliance. Tax administration is one of the components of the tax system which they assert can affect the yield, effectiveness and efficiency of any tax system. The study adopted a survey research design and data used was gathered from primary source while the Ordered Logistics Techniques was used to analyze the model put forward. Findings from this study showed that tax rate, taxpayers’ perception of government, taxpayers’ income and taxpayers’ attitude to tax system have a significant impact on personal income tax compliance. The study concludes that both deterrent tax measures and psychological aspects of taxpayers affect and determine the extent of tax compliance. The study then recommends that government should ensure better compliance by being accountable and providing evidence of proper utilization of taxpayers’ fund.
TABLE OF CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgements iv
Abstract v
Table of Contents vi
Chapter One: Introduction
1. Background to the Study 1
2. Statement of Problem 6
3. Research Questions 11
4. Objective of the Study 12
5. Statement of Hypothesis(es) 12
6. Significance of the Study 14
7. Scope of the Study 16
8. Limitations of the Study 16
9. Definition of Terms 17
Chapter Two: Review of Related Literature
2.1 Introduction 19
2.2 Concept of Personal Income Tax Compliance 20
2.2.1 Factors that may Affect Personal Income Tax Compliance in Nigeria 27
2.3 Tax Audit and Personal Income Tax Compliance 35
2.4 Tax Rate and Personal Income Tax Compliance 39
2.5 Taxpayers’ Perception of Government and Personal Income Tax Compliance 41
2.6 Taxpayers’ Income and Personal Income Tax Compliance 44
2.7 Taxpayers’ Gender and Personal Income Tax Compliance 45
2.8 Taxpayers’ Attitude to the Tax System and Personal Income Tax Compliance 47
2.9 Theoretical Framework 49
2.9.1 Economic Deterrence Theory 50
2.9.2 Fiscal Exchange Theory 51
2.9.3 Social and Psychological Theory 52
2.10 Further Review of Empirical Studies 55
Chapter Three: Research Method and Design
1. Introduction 75
2. Research Design 75
3. Description of Population of the Study 76
4. Sample Size 76
5. Sampling Techniques 77
6. Sources of Data Collection 78
7. Method of Data Presentation 79
8. Method of Data Analysis 79
Chapter Four: Data Presentation, Analysis and Interpretation
4.1 Introduction 83
4.2 Data Presentation 83
4.3 Data Analysis 88
Chapter Five: Summary of Findings, Conclusion and Recommendations
5.1 Introduction 97
5.2 Summary of Findings 97
5.3 Conclusion 98
5.4 Recommendations 98
References 100
