DETERMINANTS OF TAX MORALE AND TAX COMPLIANCE: EVIDENCE FROM NIGERIA

Abstract

This study examined the determinants of tax morale and tax compliance in Nigeria. The objective of the study are: trust in government, culture, age, religion, education, employment. The study adopted cross sectional research survey design as a method of investigation. Four (4) public limited companies listed under the Nigeria stock exchange formed the basis upon which investigation was carried and sample size obtained for the study. Questionnaire was used as a research instrument to elicit responses, a total of three hundred and eighty two (382) questionnaire copies were administered and all the three hundred and eighty two copies were retrieved. Multiple regression was used to analyse the data. The study revealed that trust in government, employment , religion, age have significant relationship with tax morale and tax compliance, while culture and education have insignificant relationship with tax morale and tax compliance in Nigeria. The study concludes that transparency, accountability, people oriented tax policies and using non-economic factor in explaining the concept tax of compliance were lagging on the part of the government and need to be addressed. The study recommends that, understanding the social psychological (demographic) of a taxpayer as its relate to tax morale would help in addressing the issue of tax compliance in Nigeria, and this would also help the government to formulate the better policies in tax related matters.