Taxation is one of the important elements in managing national income, especially in developed countries and has played an important role in civilized societies since their inception. Thus, this study established the influence of tax education on taxpayer’s voluntary compliance behaviour in Lagos State, Nigeria by assessing the influence of taxpayer’s education level on tax compliance and also investigates the influence of taxpayer’s income level on tax compliance.
This study adopted a survey research design and the data required for this study was gotten through the instrument of questionnaire. One hundred and twenty - five (125) copies of questionnaire were administered to the staff of Lagos State Internal Revenue Service using convenience sampling technique out of which one hundred and sixteen (116) were retrieved for analysis. Two hypotheses were formulated from the structure of research questions. Chi-square analysis was used to test the hypotheses through the Statistical Package for Social Sciences.
Table of Contents
CHAPTER ONE: INTRODUCTION
CHAPTER TWO: LITERATURE REVIEW
CHAPTER THREE: METHODOLOGY
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
Research Objectives & Topics
This research aims to examine the influence of tax education on taxpayers' voluntary compliance behaviour within the Lagos State Internal Revenue Service (LIRS) in Nigeria. The study primarily seeks to understand how specific demographic and socio-economic factors, specifically education and income levels, correlate with the willingness of taxpayers to fulfill their tax obligations.
- The role of tax education in enhancing voluntary tax compliance.
- The impact of taxpayer education levels on compliance behaviour.
- The relationship between taxpayer income levels and voluntary tax compliance.
- Factors influencing taxpayers' attitudes towards tax systems and tax authorities.
- The distinction between tax avoidance and tax evasion in the Nigerian context.
Excerpt from the Book
1.1 Background to the Study
Taxation is one of the important elements in managing national income, especially in developed countries and has played an important role in civilized societies since their inception. Tax is defined as ‘a compulsory levy, imposed by government or other tax raising body, on income, expenditure, or capital assets, for which the taxpayer receives nothing specific in return (Lymer and Oats, 2009; Abdullah, Harry, Shazali and Quaiser, 2014). Generally, tax is considered as a civic duty. It is a cost to the tax payer, be it an individual or corporate body (Alabede, Zainol and Kamil, 2011; Abubakari and Christopher, 2013).
Historically, there were various forms of tax in Nigeria before the era of colonial masters. Under the Fulani Emirate system of administration in the Northern part of Nigeria there was a system of tax in place. Nigerians willingly paid tax through offering free services such as clearing the bush paths, digging pit toilets, wells, sweeping the market, and so on, for the good of the generality of the citizens of a village, town or and emirate. Some taxes were also paid in form of farm produce, such as yam harvest. One of the most common ones in the west, Yoruba speaking part of Nigeria, was called “Isakole”. This was usually paid to the Oba (king),just like the President of Nigeria is being paid from Consolidated Revenue Fund, under our federal system of government (Ohene, 2011).
However, income tax was formally introduced in Nigeria in 1904 by the British Colonial Government led by the late Lord Lugard, using an income tax concept termed “community tax”. This was later modified and codified in 1917 and named “National Revenue Ordinance of 1917”. By 1940, the tax ordinance had been amplified, simplified, extended and applied in all the regions
Chapter Summaries
CHAPTER ONE: INTRODUCTION: This chapter provides the background of the study on taxation in Nigeria, outlines the problem statement, and establishes the specific research objectives and questions regarding tax compliance.
CHAPTER TWO: LITERATURE REVIEW: This chapter reviews existing literature on the concept of tax compliance, theories of taxation, and the empirical evidence linking tax education and income levels to taxpayer behaviour.
CHAPTER THREE: METHODOLOGY: This chapter details the survey research design used, including the sampling of staff at the Lagos State Internal Revenue Service and the use of questionnaires for data collection.
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION: This chapter presents the statistical analysis of the survey data and provides the empirical results used to test the research hypotheses.
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS: This chapter summarizes the key findings of the study, draws final conclusions, and offers recommendations for improving voluntary tax compliance through tax education and restructured tax systems.
Keywords
Taxation, Tax Compliance, Tax Education, Tax Evasion, Tax Avoidance, Lagos State Internal Revenue Service, Voluntary Compliance, Tax Knowledge, Income Level, Tax Policy, Nigeria, Tax Administration, Public Revenue, Tax Reform, Fiscal Policy.
Frequently Asked Questions
What is the primary focus of this research?
The research focuses on investigating the influence of tax education on the voluntary compliance behaviour of taxpayers within the Lagos State Internal Revenue Service (LIRS) in Nigeria.
What are the central thematic areas of the study?
The central themes include the role of tax education, the impact of taxpayer income levels, the distinction between tax avoidance and tax evasion, and the overall factors that influence voluntary tax compliance.
What is the primary objective of this work?
The primary objective is to assess how a taxpayer’s education level and income level influence their voluntary compliance behaviour and attitudes towards taxation.
Which scientific methodology was employed?
The study adopted a survey research design using self-administered, close-ended questionnaires based on a Likert scale, with data analysed using Chi-square non-parametric testing.
What is covered in the main body of the work?
The main body covers the conceptual and theoretical framework of tax compliance, a literature review of existing studies, the methodology adopted, presentation of survey data, and the testing of research hypotheses.
Which keywords best characterize this research?
Key terms include Taxation, Tax Compliance, Tax Education, Voluntary Compliance, Tax Evasion, and Tax Administration.
How does tax education affect voluntary compliance?
The study concludes that tax education significantly influences voluntary compliance by enabling taxpayers to understand tax laws, procedures, and the benefits of paying taxes, thereby reducing non-compliance.
Does income level play a significant role in tax compliance according to this study?
Yes, the empirical analysis confirmed that income level has a significant influence on taxpayer compliance behaviour, though it does not necessarily mean higher income earners are always more willing to pay.
- Arbeit zitieren
- Damilare Olatunbosun (Autor:in), 2015, The Influence of Tax Education on Tax Compliance. A Study of Lagos State Internal Revenue Service (LIRS), München, GRIN Verlag, https://www.grin.com/document/1035596
