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Article
Control of Corruption, Trust in Government, and Voluntary Tax Compliance in South-West, Nigeria
Author(s)
Adekoya A. Augustine, Enyi P. Enyi
Full-Text PDF XML 773 Views
DOI:10.17265/2328-2185/2020.01.011
Affiliation(s)
Babcock University, Ilisan-Remo, Nigeria
ABSTRACT
Tax payers’ level of compliance
behaviour is a major concern to government and tax authorities. Constant losses
of tax revenue through bribery, corruption, and abuse of power for personal advantage
are perceived to have adversely affected nation’s economic growth and infrastructural
development. Many researches have been conducted on taxpayers’ compliance, but not
many considered the effect of Control of Corruption (COC) in their study. This study
looked at the probable influence of COC on individual taxpayers’ voluntary tax compliance
behaviour in South-West, Nigeria. Survey research design was adopted for the study.
Population for the study was 5,216,422 individual taxpayers in three selected states.
A validated questionnaire was used to collect data from respondents by means of
Stratified and random sampling techniques with a sample size of 1,200 and this gives
a response rate of 87.6%. The reliability test using Cronbach’s alpha coefficients
ranged from 0.79 to 0.86. The study adopts descriptive and inferential statistics
to analyze the data at 0.05 level of significance. The study shows that COC positively
influenced voluntary tax compliance among individual taxpayers in the study states
(Adj. R2 = 0.063, F(6, 1050) = 12.68, p = 0.000).
There was evidence that trust in government, COC, and employment status have significant
relationship with voluntary tax compliance behaviour in the study states (β = 0.139, t(1044) = 6.125, p = 0.000, β = 0.154, t(1044) = 5.025, p = 0.000, β = -0.237, t(1044) = -3.562, p = 0.00) while
gender, age, and educational level do not have significant relationship with voluntary
tax compliance (β = 0.036, t(1044) = 0.664, p = 0.664, β = -0.002, t(1044) = -0.080, p = 0.936, β = 0.035, t(1044) = 1.081, p = 0.280), respectively. The study concluded that control of corruption
influenced individual voluntary tax compliance. Government should put better stiff
strategies in controlling corruption on tax matters, overhaul the internal control
mechanism, establish state anti-graft agencies, and put stiff punishment for any
fraudulent activity on tax revenue generation while zero tolerance to corruption
should be seen and practice.
KEYWORDS
bribery, corruption, economic growth, infrastructural development, tax authority, trust in government, voluntary tax compliance
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