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Effect of Tax Incentives and Tax Reforms on Taxpayers' Voluntary Compliance in Nigeria

Author

Listed:
  • Niyi S. Awotomilusi

    (Department of Accounting, College of Social and Management Science)

Abstract

The study investigated how tax reforms and incentives affected Nigerian taxpayers' voluntary compliance with the tax laws. In conducting this study, the survey research design was used. 120 employees of FIRS Abuja (Garki) office made up of the study's population and used as a sample size with intent to represent the entire population. Utilizing a questionnaire, data were gathered. The research tool's reliability was confirmed. A pilot study was conducted to examine the instrument's dependability, and the split-half approach was used to test the data gathered. The instrument was found to be reliable in gathering all the data required for the investigation, as demonstrated by the reliability coefficient of 0.75 that was achieved. Out of 120 copies of questionnaire distributed, only 84 were retrieved which indicates a return rate of 70%. The data collected were analysed using descriptive statistical techniques mean and standard deviation to answer the research questions. Regression analysis was used to test the hypotheses formulated at 0.05 level of significance. The result of the study showed that the level of voluntary compliance taxpayers in Nigeria would rise when tax incentives and tax reforms are well implemented. It was also discovered that tax reforms and incentives have a big impact on tax compliance. According to the study, tax administrators should make sure that government policies on tax incentives and tax reforms are carried out effectively to understand how they have a strong causal effect on tax compliance among Nigerian taxpayers. The research suggested, among other things, that the body in charge of tax collection in Nigeria should encourage adequate staff training to boost tax compliance and lower revenue loss.

Suggested Citation

  • Niyi S. Awotomilusi, 2022. "Effect of Tax Incentives and Tax Reforms on Taxpayers' Voluntary Compliance in Nigeria," Multidisciplinary Journal of Management Sciences, Association of Forensic Accounting Researchers (AFAR), vol. 4(3), pages 169-180.
    • Handle: RePEc:ris:amjoms:0069
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    References listed on IDEAS

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