Impact of Tax Morale on Economic Development in Nigeria

Okanlawon B. Funmilola, Raji Sadiq, Bojuwon Mustapha, A. M. Kafayat

Abstract


Taxation is one of the most volatile subjects in governance both in the developing and developed nations. Hence, this study examines the impact of tax morale on economic development in Nigeria. Data were collected from Lagos State Internal Revenue Service, Primary data was used in this research work, and Cross-sectional survey was used with questionnaire as the major tool of data collection.  Simple Percentages, Regression Analysis were used to analyze the data. The result shows that there are a number of significant correlations between economic development and tax morale. The study recommended that there is a need to provide strong taxpayer’s services particularly during the tax filing stage, tax returns be scrutinized under the supervision, or be jointly examined with a senior tax official so that the discretionary powers being exercised by tax officials are not abused. The government and tax administrators should aim at strategies that would enhance confidence in their credibility and their capacity would be rewarded with higher tax morale. The analyzing tool was Manual Scientific Formula Calculation.


Keywords


tax morale, tax payers, effective governance, economic development

Full Text:

PDF

References


Abdulrazaq, M.T. (1993). Principles and practice of Nigerian tax planning and Management.Ilorin: Batay Publications Limited.

Akhor, S. O. (2014). Impact of tax revenue on economic development in Nigeria. (An unpublished M.Sc. thesis). Department of Accounting, University of Benin, Benin-City, Edo State, Nigeria.

Allingham, M. G. & Sandmo A. (1972). Income tax evasion: A theoretical analysis,

Asika, N. (2000). Research methodology in the behavioural sciences. Lagos: Longman Nigeria

Attwell, R.L. & Sawyer, A. J. (2001). The ethical attitudes of New Zealand tax practitioners-still „barely passing‟? New Zealand Journal of Taxation Law and Policy, 7(2). Australian Taxation Office (1997). Australian Taxation Office annual report

Beck, P., Davis, J. & Jung, W. (1994). Tax advice and reporting under uncertainty: theory and an experimental evidence. Illinois: University of Illinois.

Becker, G.S. (1968). Crime and punishment: An econometric approach, Journal of Political Economy. 76: 169-217.

Braithwaite, V., J. Braithwaite, J., Gibson, D. & Makai, T. (1994). Regulatory styles, motivational postures and nursing home compliance. Law and Policy, 16, 363-394.Business Dictionary, 2016.

Collins, J. H., V.C. Milliron. V.C. & Toy, D. R. (1990). Factors associated with household demand for tax preparers. The Journal of American Taxation Association, 12, 9-15.

Dubin, J. A., Graetz, M., Udell, A. & Wilde, L. L. (1992). The demand for tax return preparation services. Review of Economic and Statistics. 74, 75-82.Economicus. 15, 27-44.

Erard, B. & Feinstein, J. S. (1994). The role of moral sentiments and audit perceptions in tax compliance. Public Finance. 49, 70-89.

Erard, B. (1993). Taxation with representation: An analysis of the role of the practitioners in tax compliance. Journal of Public Economics. 52, 163- 197.

Frey, B. S. & Holler, M. J. (1998). Tax compliance policy reconsidered. Homo

Frey, B. S. (1992). Pricing, regulating, and intrinsic motivation. Kyklos 45, 161- 184.

Frey, B.S. (2003). “The role of deterrence and tax morale in taxation in European Countries” Netherlands Institute for Advance Studies in Humanities and Social Sciences, Wassenaar.

Hatcher, L. (1994). A step-by-step approach to using the SAS(R) system for factor analysis and structural equation modelling. Cary, NC: SAS Institute.

Ibadin, P.O., & Eiya, O. (2013). Tax evasion and avoidance behaviour of the self-employed.

James, S. & Nobes, C. (1992). Taxation: Theory and practice. London, Prentice Hall. 1996-1997, Canberra: Commonwealth of Australia.Journal of Public Economic, 1:323-338.

Kagan, R. A. & Scholz, J. T. (1984). The Criminology of the Corporation and Regulatory Enforcement Strategies, in: K. Hawkins and J.M. Thomas (eds.), Enforcing regulation.(Boston); Kluwer-Nijhoff Publishing.

Klepper, S., Mazur, M. & Nagin, D. S. (1991). Expert intermediaries and legal compliance. the case of tax preparers. Journal of Law and Economics, 34, 205-229.

Lewis, A. (1982). “The psychology of taxation”, Oxford, Martin Robertson.

Lynn, Stuart R. 2003. Economic Development: Theory and Practice for a Divided World. Prentice Hall. New Jersey.

McGill, G. A. (1983). The CPA‟s role in income tax compliance: An empirical study of variability in recommending aggressive tax position. Texas: Texas Tech. University.

McGraw, K. M. & Scholz, J. T. (1991). Appeals to civic virtue versus attention to self-interest: Effect of tax compliance. Law and Society Review. 25, 471-498.

Murphy, K. & Harris, N. (2007). Shaming, shame and recidivism: A test of re integrative shaming theory in the white-collar crime context. British Journal of Criminology. 47, 9-917.

Murphy, K. & Byng, K. (2002). Preliminary findings from the Australian tax system survey of tax scheme investors. Center for Tax System Integrity Working Paper no 40. Canberra: The Australian National University.

Murphy, K. (2004). Aggressive tax planning: Differentiating those playing the game from those who don’t. Journal of Economic Psychology. 25, 285- 303.

Murphy, K. (2008). Enforcing tax compliance: To punish or persuade? Economic Analysis and Policy, 38, 113-135

Nigerians. European Journal of Business and Management. 5(6), 1-16.

Nightingale, K. (2001). Taxation: Theory and practice. London, Prentice Hall.

Odusola, A. (2006). “Tax policy reforms in Nigeria”, World Institute for Development Economic Research, Research Paper No 2006/3, United Nations University.

Okoye, P.V.C., & Ezejiofor, R. (2014). The impact of e-taxation on revenue generation in Enugu, Nigeria. International of Advanced Research. 2(2), 449-458.

Otusanya, O.J. (2001). Taxation, Lagos, University of Lagos Press Plc.

Sakurai, Y. & Braithwaite, V. (2001). Taxpayers‟ perceptions of the ideal tax adviser: playing save or saving dollars? Working Paper No 5: Australian National University.

Salkind, N.J. (2004). Statistics for people who (think they) hate Statistics (2nd edition) London: Sage Publications

Sanders, M, Lewis, P. & Thomhill, A. (1997). Research methods for business students. London Financial Times-Pitman Publishing.

Tooley, S. (1992). Tax practitioners: Towards an understanding of ethical problems and attitudes. Discussion paper. Palmerstone North: Massy University, Accountancy Department.

Torgler, B. (2002). “Speaking to theorists and searching for facts: Tax morale and tax compliance in experiments”. Journal of Economic Surveys, 16, 657-684.

Torgler, B. (2003). Theory and empirical analysis of tax compliance, Basel: University of Basel.

Tyler, T. R. (1997). Procedural fairness and compliance with the law. Swiss Journal of Economics and Statistics. 133, 219-240.

Vogel, J. (1974). Taxation and public opinion in Sweden: An interpretation of recent survey data. National Tax Journal. 27, 499-513.

Webley, P., Robben, H Elffers, H. & Hessing, D. (1991).Tax evasion: An experimental approach. Cambridge: Cambridge University Press.

Wenzel, M. (2002). “Principles of procedural fairness in reminder letters: A field experiment,Centre for Tax System Integrity, Working Paper No 42, Canberra: The Australian National University.


Refbacks

  • There are currently no refbacks.




Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.