Tax Information, Administration and Knowledge on Tax Payers’ Compliance of Block Moulding Firms in Ekiti State

Clement Olatunji Olaoye

doi:10.11648/j.jfa.20170504.12

Abstract

This study examined the impact of tax information, administration and knowledge on tax payers’ compliance of Block Moulding Firms in Ekiti State, Nigeria using a survey research design. The data obtained from questionnaire were analysed using the ordinary least square regression method. The results showed that tax information and knowledge had positive significant impacts on tax compliance while tax administration had an insignificant impact on tax compliance with unstandardized beta coefficients of 0.251 (t = 2.038, p<0.05), 0.322 (t= 3.682, p<0.05) and 0.077 (t = 1.021, p>0.05) accordingly. Thus, the study indicated that tax information, tax knowledge has higher tendency to promote tax compliance than tax administration. The study recommended that government should through its agencies educate the potential tax payers on tax laws and regulations by direct free symposia and seminars.

Highlights

The administration and management of taxes in nation building is very important
Taxation is seen as a burden which every citizen must bear to sustain his or her government because the government has certain functions to perform for the benefits of those it governs
“Despite the various tax reforms undertaken by successive governments to increase tax revenue over the years, prior statistical evidence has proven that the contribution of income taxes to the government’s total revenue remained consistently low and is relatively shrinking [5]”

Summary

Introduction

The administration and management of taxes in nation building is very important. The importance of tax to the smooth running of government cannot be over-emphasised. They are essential ingredients in building a viable economic prosperity. Taxes and tax system are required for state capacity building for meaningful economic development. [9], define tax as a compulsory levy imposed by government on individuals and companies for the various legitimate functions of the state. Tax is that part of the property and labour of the citizens, taken by the nation, in the exercise of its legitimate rights, for the support of her government in the discharge of its legitimate functions of maintaining peace and order. Non-compliance of tax is a serious challenge facing income tax administration and hindering tax revenue performance. The taxpayers are, not willing to comply when it comes to the obligations imposed on them by law to pay and remit taxes

Objectives

Methods

Results

Conclusion