Determinants of Personal Income Tax Compliance Behaviour in Kaduna State, Nigeria: Slippery Theory Approach A
Keywords:
Tax Enforcement, Personal Income Tax, Tax Compliance, Slippery Theory
Abstract
This study examined the impact of public confidence in government and tax enforcement on personal income tax compliance behaviour in Kaduna State Nigeria. The study’s data were obtained through a survey from a primary source. With a view to understand the characteristics of the study’ data, and also to determine the most appropriate analytical tool to employ, Breusch-Pagan-Godfrey heteroskedasticity and Variance Inflation Factor tests were conducted. Analytical capacity of Weighted Least Square Regression Model was exploit to analyse the study’s data. The study found that, income level has significant negative impact on personal income tax compliance behaviour in the state. While public confidence in government and tax enforcement have significant positive impact on the tax compliance level, however tax knowledge has insignificant positive impact on the compliance rate in the state. The study concluded that, income level, public confidence in government and tax enforcement are important determinant of personal income tax compliance behaviour in the state. The Kaduna State Internal Revenue Service (KADIRS), should enhance her efforts of enforcing compliance with the relevant provisions of tax laws and regulations in the state. The state government should also, doubled her financial and political support to the KADIRS, in order to maximise compliance with the provisions of the relevant tax laws and regulations in the state.
References
Abdallah, Z., T., & Usman, A., (2018). Assessing the Impact of Anti Income Tax Evasion Measures on Tax Revenue Generation in Kaduna State, Nigeria. Dutse Journal of Economic Development and Studies, 5(1) ,121-128.
Abdul Rashid, S., F., Mohammed, R.., R., Palila, R.., & Amira, A., M., (2021). The Influence of Power and Trust on Tax Compliance Motivation in Malaysia. International Journal of Economics and Management 15 (1),133-148, http://www.ijem.upm.edu.my
Adeniran, A., Ekeruche, M., A., & Onywkwena, C., (2021). The Role of Social Influence in Enforcing Tax Compliance: Experimental Evidence from Nigeria. The International Centre for Tax and Development ICTD), working papers (122)
Allingham, M., G., and Sandmo, A., (1972). Income Tax Evasion: A Theoretical Analysis. Journal of Public Economics,1, 3-4, 323-338.
Aliu, O., M., (2020). Corruption Perception and Tax Compliance Morale in Edo State, Nigeria. Journal of Public Policy, 3 (2), 37-51.
Benedek,D., Benitez,J., C., and Vellutini, C., (2022). Progress of the Personal Income Tax in Emerging and Developing Countries. IMF Working Papers, 2022/020.
Batrancea, L. (2019). Trust and power as determinants of tax compliance across 44 nations. https://doi.org/10.1016/j.joep.2019.102191.
Boly, A., Konte, M., & Shimeles, A., (2020). Corruption and Tax Morale in Africa. African Development Bank Group, Working Paper No 333.
Christensen, T., & Laegreid, P., (2002). Trust in Government- The Relative Importance of Services Satisfaction, Political Factors and Demography. Stein Rokken Centre for Social Studies Working Papers 18-2002. www.reseasrchgate.net
Cowell, F., A., & Gordon J, P. F., (1988). Unwilling to Pay: Tax Evasion and Public Goods Provision. Journal of Economics 36(3). 305-32
Deyganto, K.,O., (2018) . Determinants of Tax Compliance Attitude with Taxation: Evidence from Category “A” Taxpayers in Gedeo Zone, SNNPRS, Ethiopia. Research Journal of Finance and Accounting, 9(17),32-44.
Dissanayake, N., & Premaratn, S., P., (2020) .The Impact of Income on Tax Compliance: The Empirical Evidence from Small and Medium Taxpayers in Sri Lanka. www.resaserchgate.net/publication/3458223206.
El Rufai, N., (2019) .Taxation is Panacea to Dwindling Revenue. www.nationnewspapers. May, 20th, 2021.
Enache. C., (2020). OECD Report: Tax Revenue in African Countries. http:/taxfoundation.org
Gamson, W., A., (1968). Power and discontent. Homewood, Illinois: The Dorsey Press
Feld, L., and Frey, .R.., (2005). Tax Compliance as a Result of Psychological Tax Contract: The Role of Incentive and Responsive Regulation. Centre foe Tax System Integrity working papers 76.
Ibrahim, A., (2022). Impact of Tax Revenue on Economic development of Nigeria. Journal of Accounting (4) (1), 16-24
International Monetary Fund (IMF) (2021). Staff Concluding Statement.2021 Article IV Mission on Nigeria. www.imf.ng
Iweala, N., O., (2012) .Nigerians Do not Trust Government. www.dailypost.ng / Nigerians do not trust government
Kamasa, K., Adu, G., & Oteng-Abayi, E., F., (2019). Tax Compliance in Sub-Saharan Africa: How Important are Non-Pecuniary Factors? African Journal of Economic Review,7(1), 47-50
Kefas, Z., (2019). Assessing the Drivers of Personal Income Tax Compliance Rate in Taraba State, Nigeria. International Journal of Taxation, 8(4), 89-101.
Kwame, A., (2019) .Impact of Tax evasion on Ashanti Region Development. Global Journal of Accounting and Taxation,7 (3),121-130.
Kwame, A., and Ali, A., (2022). Determinants of Tax Compliance Behaviours in Selected West African States. Academic Journal of Accounting and Social Sciences. 4(1), 21-32.
Kircher, E., Hoelzt, E., & Wahl, I., (2008). Enforced Versus Voluntary Tax Compliance: The Slippery Slope Framework. Journal of Economic Psychology, 29 (2008), 210-215.
Koumpias, A., M., Leonardo, G., & Martinez-Vazquez, J., (2020). Trust in Government Institutions and Tax Morale. International Center for Public Policy Working Paper, 20-01.
Laksmama, A., and Narsa, I., M. (2017). The Effect of Vertical and Horizontal Trust on Voluntary Tax Compliance (An Experimental Study). Advances in Social Science, Education and Humanities Research (84), 15-19
Latane, B., (1981). The Psychology of Social Impact. Journal of American Psychologist, 36(1), 343-356, http:\\ dx.doi.org/10.1037/0003-066X.36.4.343
Lisi, G., (2019). Slippery Slope Framework, Tax Morale and Tax Compliance: A Theoretical Integration and an Empirical Assessment. Discussion Paper in Economic Behaviour.www.erices.es
Mathew, B., (2018) .Taxation and Social Contract in Uganda. Kampala University Journal of Accounting, 5(3),71-82.
Melgar, N., Rossi, M.., & Smithy, T., W., (2010). The Perception of Corruption. International Journal of Public Opinion Research, 22(1), 121-131.
Nasir, G., (2022). Tax Evasion and Tax Revenue in Nigeria. Asian Journal of Social and Management Sciences (8)(3), 112-119
Ngozi, B., (2021). Tax Morale in Anambra State, Nigeria. International Journal of Accounting Studies, 11(4), 33-40
Nura, L., (2019). Factors Influencing Tax Compliance Morale in Yobe State, Nigeria. International Journal of Accounting, 7(4), 112-119
Organisation for Economic Development and Cooperation (2021). Government at a Glance 2021: Integrity and anti-corruption strategies .www.oecd.org
Organisation for Economic Development and Cooperation (2020). Trust in Government Ethics Measures in OECD Countries. www.oecd.org
Oladele, A., O., Ndalu, T., C., & Micah, L., C., (2021). Tax Enforcement Measures and Revenue Generation in Nigeria. International Journal of Business & Law Research, 9(4),58-66.
Otindo, O., C., (2019). Determinant of Tax Compliance Behaviour in Kenya. A Thesis for the Award of Master of Art in Economic Management Policy, School of Economics University of Nairobi, Kenya.
Oyewole, R., (2022). Determinants of Personal Income Tax Compliance Behaviour in Ogun State, Nigeria. Asian Journal of Accounting and Taxation, 9(2), 134-148.
Rothstein, B. (2000).Trust, Social Dilemmas and Collective Memories. Journal of Theoretical Politics,(12), 477-501.
Tanko, M., B., (2015). Tax Law Enforcement: Practice and Procedure. Research Journal of Finance and Accounting, 6(7), 143-147.
Tsikas, S., A. (2017). Enforce tax compliance, but cautiously: The role of trust in authorities and power of Authorities. Hannover Economic Papers, (589). http://hdl.handle.net/10419/172843
Usman, A., (2018). An Examination of the Size of Personal Income Tax Gap in Kaduna State, Nigeria. IOSR Journal of Humanities and Social Sciences.,23(10) (2):,34-42.
Wahl, I., Kastlunger, B., and Kirchler, E. (2010).Trust in Authorities and Power to Enforce Tax Compliance: An Empirical Analysis of the \Slippery Slope Framework" Journal of Law and Policy. (32), 383-406.
Warren, B., (2017) .The role of Taxation for the Sustenance of Government in Portugal. European Journal of Taxation,15(7), 84-96.
Yaniv, G., (2009). The Tax Compliance Demand Curve: A Diagrammatical Approach to Income Tax Evasion. Journal of Economic Literature, 40 (2), 73-87.
Yitzhaki, S. (1974). Income tax evasion: A theoretical analysis. Journal of Public Economics, 3 (2), 22-38.
Abdul Rashid, S., F., Mohammed, R.., R., Palila, R.., & Amira, A., M., (2021). The Influence of Power and Trust on Tax Compliance Motivation in Malaysia. International Journal of Economics and Management 15 (1),133-148, http://www.ijem.upm.edu.my
Adeniran, A., Ekeruche, M., A., & Onywkwena, C., (2021). The Role of Social Influence in Enforcing Tax Compliance: Experimental Evidence from Nigeria. The International Centre for Tax and Development ICTD), working papers (122)
Allingham, M., G., and Sandmo, A., (1972). Income Tax Evasion: A Theoretical Analysis. Journal of Public Economics,1, 3-4, 323-338.
Aliu, O., M., (2020). Corruption Perception and Tax Compliance Morale in Edo State, Nigeria. Journal of Public Policy, 3 (2), 37-51.
Benedek,D., Benitez,J., C., and Vellutini, C., (2022). Progress of the Personal Income Tax in Emerging and Developing Countries. IMF Working Papers, 2022/020.
Batrancea, L. (2019). Trust and power as determinants of tax compliance across 44 nations. https://doi.org/10.1016/j.joep.2019.102191.
Boly, A., Konte, M., & Shimeles, A., (2020). Corruption and Tax Morale in Africa. African Development Bank Group, Working Paper No 333.
Christensen, T., & Laegreid, P., (2002). Trust in Government- The Relative Importance of Services Satisfaction, Political Factors and Demography. Stein Rokken Centre for Social Studies Working Papers 18-2002. www.reseasrchgate.net
Cowell, F., A., & Gordon J, P. F., (1988). Unwilling to Pay: Tax Evasion and Public Goods Provision. Journal of Economics 36(3). 305-32
Deyganto, K.,O., (2018) . Determinants of Tax Compliance Attitude with Taxation: Evidence from Category “A” Taxpayers in Gedeo Zone, SNNPRS, Ethiopia. Research Journal of Finance and Accounting, 9(17),32-44.
Dissanayake, N., & Premaratn, S., P., (2020) .The Impact of Income on Tax Compliance: The Empirical Evidence from Small and Medium Taxpayers in Sri Lanka. www.resaserchgate.net/publication/3458223206.
El Rufai, N., (2019) .Taxation is Panacea to Dwindling Revenue. www.nationnewspapers. May, 20th, 2021.
Enache. C., (2020). OECD Report: Tax Revenue in African Countries. http:/taxfoundation.org
Gamson, W., A., (1968). Power and discontent. Homewood, Illinois: The Dorsey Press
Feld, L., and Frey, .R.., (2005). Tax Compliance as a Result of Psychological Tax Contract: The Role of Incentive and Responsive Regulation. Centre foe Tax System Integrity working papers 76.
Ibrahim, A., (2022). Impact of Tax Revenue on Economic development of Nigeria. Journal of Accounting (4) (1), 16-24
International Monetary Fund (IMF) (2021). Staff Concluding Statement.2021 Article IV Mission on Nigeria. www.imf.ng
Iweala, N., O., (2012) .Nigerians Do not Trust Government. www.dailypost.ng / Nigerians do not trust government
Kamasa, K., Adu, G., & Oteng-Abayi, E., F., (2019). Tax Compliance in Sub-Saharan Africa: How Important are Non-Pecuniary Factors? African Journal of Economic Review,7(1), 47-50
Kefas, Z., (2019). Assessing the Drivers of Personal Income Tax Compliance Rate in Taraba State, Nigeria. International Journal of Taxation, 8(4), 89-101.
Kwame, A., (2019) .Impact of Tax evasion on Ashanti Region Development. Global Journal of Accounting and Taxation,7 (3),121-130.
Kwame, A., and Ali, A., (2022). Determinants of Tax Compliance Behaviours in Selected West African States. Academic Journal of Accounting and Social Sciences. 4(1), 21-32.
Kircher, E., Hoelzt, E., & Wahl, I., (2008). Enforced Versus Voluntary Tax Compliance: The Slippery Slope Framework. Journal of Economic Psychology, 29 (2008), 210-215.
Koumpias, A., M., Leonardo, G., & Martinez-Vazquez, J., (2020). Trust in Government Institutions and Tax Morale. International Center for Public Policy Working Paper, 20-01.
Laksmama, A., and Narsa, I., M. (2017). The Effect of Vertical and Horizontal Trust on Voluntary Tax Compliance (An Experimental Study). Advances in Social Science, Education and Humanities Research (84), 15-19
Latane, B., (1981). The Psychology of Social Impact. Journal of American Psychologist, 36(1), 343-356, http:\\ dx.doi.org/10.1037/0003-066X.36.4.343
Lisi, G., (2019). Slippery Slope Framework, Tax Morale and Tax Compliance: A Theoretical Integration and an Empirical Assessment. Discussion Paper in Economic Behaviour.www.erices.es
Mathew, B., (2018) .Taxation and Social Contract in Uganda. Kampala University Journal of Accounting, 5(3),71-82.
Melgar, N., Rossi, M.., & Smithy, T., W., (2010). The Perception of Corruption. International Journal of Public Opinion Research, 22(1), 121-131.
Nasir, G., (2022). Tax Evasion and Tax Revenue in Nigeria. Asian Journal of Social and Management Sciences (8)(3), 112-119
Ngozi, B., (2021). Tax Morale in Anambra State, Nigeria. International Journal of Accounting Studies, 11(4), 33-40
Nura, L., (2019). Factors Influencing Tax Compliance Morale in Yobe State, Nigeria. International Journal of Accounting, 7(4), 112-119
Organisation for Economic Development and Cooperation (2021). Government at a Glance 2021: Integrity and anti-corruption strategies .www.oecd.org
Organisation for Economic Development and Cooperation (2020). Trust in Government Ethics Measures in OECD Countries. www.oecd.org
Oladele, A., O., Ndalu, T., C., & Micah, L., C., (2021). Tax Enforcement Measures and Revenue Generation in Nigeria. International Journal of Business & Law Research, 9(4),58-66.
Otindo, O., C., (2019). Determinant of Tax Compliance Behaviour in Kenya. A Thesis for the Award of Master of Art in Economic Management Policy, School of Economics University of Nairobi, Kenya.
Oyewole, R., (2022). Determinants of Personal Income Tax Compliance Behaviour in Ogun State, Nigeria. Asian Journal of Accounting and Taxation, 9(2), 134-148.
Rothstein, B. (2000).Trust, Social Dilemmas and Collective Memories. Journal of Theoretical Politics,(12), 477-501.
Tanko, M., B., (2015). Tax Law Enforcement: Practice and Procedure. Research Journal of Finance and Accounting, 6(7), 143-147.
Tsikas, S., A. (2017). Enforce tax compliance, but cautiously: The role of trust in authorities and power of Authorities. Hannover Economic Papers, (589). http://hdl.handle.net/10419/172843
Usman, A., (2018). An Examination of the Size of Personal Income Tax Gap in Kaduna State, Nigeria. IOSR Journal of Humanities and Social Sciences.,23(10) (2):,34-42.
Wahl, I., Kastlunger, B., and Kirchler, E. (2010).Trust in Authorities and Power to Enforce Tax Compliance: An Empirical Analysis of the \Slippery Slope Framework" Journal of Law and Policy. (32), 383-406.
Warren, B., (2017) .The role of Taxation for the Sustenance of Government in Portugal. European Journal of Taxation,15(7), 84-96.
Yaniv, G., (2009). The Tax Compliance Demand Curve: A Diagrammatical Approach to Income Tax Evasion. Journal of Economic Literature, 40 (2), 73-87.
Yitzhaki, S. (1974). Income tax evasion: A theoretical analysis. Journal of Public Economics, 3 (2), 22-38.
Published
2023-09-10
How to Cite
Usman, A., Birat, S., & Jibril, B. I. (2023). Determinants of Personal Income Tax Compliance Behaviour in Kaduna State, Nigeria: Slippery Theory Approach A. Global Journal of Accounting, 9(1), 18-33. Retrieved from http://gja.unilag.edu.ng/article/view/1845
Section
Articles
