Electronic Taxation and Tax Compliance among Some Selected Fast Food Restaurants in Lagos State, Nigeria (Tax Payers Perspective) (Published)
This study assessed the effect of level of awareness on electronic tax on tax compliance by small and medium scale enterprises (SMEs) in Lagos state; it also examined the effect of perceived ease of use on tax compliance and determined the effect of electronic tax filing system cost on tax compliance among SMEs in Lagos state; This was done with a view to determine the effect of electronic tax filing system on tax compliance among SMEs in Lagos state Nigeria. The study employed the survey research design. Data were collected from primary sources through the use of structured questionnaire distributed to the SMEs at their place of work. The population of the study consist of nine hundred and fifty (950) small and medium scale enterprises in Lagos state in the fast food restaurants sub sector. A sample size of two hundred and eighty-one was selected using the Taro Yamane formula. Data collected were analysed using descriptive statistics, structural equation model analysis and regression. Analysis of the study revealed that level of awareness (LOA) showed significant positive relationship with tax compliance (β= 0.276; t=2.689; p=0.008). It was also revealed that perceived ease of use (PEU) (β = 0.249; t= 2.331; p= 0.022) has a positive effect on tax compliance but was statically non-significant. The tax compliance cost (TCC) (β=-0.289; t= -2.568; p=0.012) showed a non-significant negative effect on tax compliance. The study therefore concludes that the level at which the tax payers are aware of the electronic tax filing system will determine their compliance rate and the compliance cost may discourage the tax payers from using the system if it is higher. Although the effect of ease of use is non-significant, the positive effect it has indicates that it has the potential to influence tax compliance. The study therefore recommends that government should increase its tax awareness efforts; review the electronic tax filing system to reduce cost of usage and provide a user friendly avenue for using the system.
The paper examined the effects of tax audit on tax compliance in Ekiti State, Nigeria. The study employed primary data where 60 questionnaires were randomly distributed to Federal Inland Revenue Service and Ekiti State Board of Internal Revenue Service Staff. Multinomial Logistic Regression analysis was employed as the estimation technique. The findings revealed that the multinomial logistic regression model fitting information was significance with the p-value of 0.040 which implies that the tax audit can influence the tax compliance. Also, the likelihood ratio tests of multinomial regression showed that tax accuracy and current returns have not been significantly affecting tax compliance, that tax law has effect on tax compliance while tax procedure has no effect on tax compliance during the study period. The study concluded that tax audit is yet to make any substantial effect on tax compliance. It therefore recommended that the relevant tax authority at all levels should improve the standard of tax audit employed for effectiveness and efficiency and equally, relevant tax authority should provide a policy that would allow the tax payers to cooperate during the period of tax audit.
Contemporary Issues in Corporate Income Tax in Nigeria – A Review of Precept and Practice (Published)
This study undertakes a review of contemporary issues in Corporate Income Tax practices in Nigeria against the background of Nigeria’s economy being generally characterized by low tax compliance and enforcement. All resident corporate entities are required to pay tax on all incomes or profits made by them from a source within and outside Nigeriato the federal government (CITA, 2007). However, if such corporate entities are resident outside Nigeria, only the income attributable to their operations in Nigeria is taxable. Low tax compliance is a matter of grave concern in many countries especially developing ones like Nigeria because it limits the capacity of their respective governments to raise revenues for development purposes. There is no gainsaying the fact that tax enforcement has become an essential aspect of tax administration in view of the ingenious ways corporate taxpayers undermine the revenue generation process by not remitting what is due to government (Gwangdi and Garba 2015). This study reviews extant provisions on tax reliefs and incentives applicable to corporate entities to facilitate voluntary compliance and recommendations are made on enhancing the successful implementation of theVoluntary Assets and Income Declaration Scheme (VAIDS) and improve the corporate income tax culture in order to enhance the gross domestic product
Demystifying the Key Taxation Concepts to Improve Compliance by Small and Medium Enterprises in Kenya (Published)
In Kenya, there exist small, medium (SMEs) and large enterprises but SMEs’ have been always regarded as the engines due to their immense contribution to the economy. Many reforms in taxation system in Kenya have been done to ensure that the government collects enough revenue to finance its ever increasing budget. However, taxation is still an uphill task among SMEs thus viewed to be complex and a burden. In this regard therefore, the study was guided by tax compliance theory while assessing the key taxation concepts which will increase compliance among Kenya’s SMEs. Using library research design, the study found out that SMEs in Kenya are in dire need of understanding the principal objective of taxation, taxation approaches, tax crimes and audits. However, the researcher recommends increased taxation sensitization by the main tax authority in Kenya (KRA) given the new reforms made. In addition, there is need to avail more knowledge to Kenya’s SMEs regarding factors affecting their tax compliance.
THE SIZE OF THE TAX EVASION PROBLEMS ON SELF-EMPLOYMENT INCOME: AN EXAMINATION OF EFFECTS OF TAX POLICIES ON COMPLIANCE (Published)
Income tax evasion is a significant problem faced by most of the countries around the world. The phenomenon interferes with economic efficiency, socially desirable income distribution, long term economic growth, and price stability. Therefore, a reform strategy to increase tax compliance with a concerted, long term, coordinated, and comprehensive plan is required. It is also vital that tax administrators ensure that every compliance policy instrument at their disposal is use as effectively as possible. The intent of this study was to consider the implications of the increase of tax evasion which has been a source of big concern to policymakers. Issues, such as tax compliance costs and revenue maximizing taxation have also been analyzed. This paper pulls together the various strains of research to illustrate the current state of knowledge regarding the impacts of tax evasion on the economy and to identify areas in which additional research is particularly warranted.