TAX RATE AND TAX COMPLIANCE IN AFRICA (Published)
The paper examines the correlation as well as the effect of tax rate on tax compliance in Africa using cross-country data. The study used all the African countries as population, upon which sample were selected using multi-stage approach. Data was analyzed using SPSS version 19.The findings showed that there is significant negative correlation between tax rate and tax compliance and tax rate has a negative effect on tax compliance. Thus, it is recommended that since average tax rate is 29.1985% in Africa, countries with tax rates above average that are experiencing noncompliance should reduce their tax rate to the mean tax rate in Africa. It is further recommended that future researchers on the subject should consider the increase in the sample size and observation years as data becomes available so as to increase the robustness of findings.