Demographic and Socio-Economic Factorts as Determinants of Tax Complaince in Self-Assessment System (Sas) In Akwa Ibom State, Nigeria
DOI:
https://doi.org/10.14738/abr.85.8189Keywords:
Self-Assessment System, Tax compliance, Equity and Fairness, Education and Income Level.Abstract
The study examined three determinants of voluntary compliance in self-assessment system of tax administration in Akwa Ibom State, Nigeria. This was motivated by the growing need to increase tax revenues generation in developing countries the tax revenue as a ratio of Gross Domestic Product is below the global average and tax administration machinery has been ineffective. Data for the study were collected using a structured questionnaire from respondents registered with the state Board of Internal Revenue determined using Taro Yamene’s Statistical Formula. Descriptive and Regression Analyses were adopted for data treatment. The model summary reveals that 80.8% of the variation in Tax compliance is accounted for the variables of perception of equity and fairness, income level and level of education of the tax payers. The ANOVA Summary justifies that the independent variables have significant influence on tax compliance with f-calculated value of 233.763 being greater than the critical f-value of 0.308451 at P<0.05. The regression coefficient indicates a positive and significant relationship between perception of equity and fairness (0.260), level of education (0.103) and tax compliance. Income level (-0.055) has negative influence on tax compliance. It is recommended that tax authorities should evolve a framework that will motivate, control, sensitize and educate tax payers on voluntary compliance in Self-Assessment system.
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There is no equity and fairness in tax administration that is why I don’t file my tax returns. I do not manipulate my tax due and other records because I perceive the system is fair to taxpayers. By paying the right amount of tax, I believe the citizens will get the benefit through the provision of basic amenities by government. B. INCOME LEVEL I pay the required tax rate authority irrespective of my income level. Lower tax rate is being charged on my higher income that is why I obliged to timely returns. Higher tax rate is being charged on the meager income that is why I don’t file my returns. My expenditure always exceeds my income that is why I don’t file my returns. C. LEVEL OF EDUCATION I have never obtained any training on the Self-Assessment System tax laws and its procedures. I have obtained adequate training on Self-Assessment System of tax and can compute my tax liabilities and file in my returns accurately without assistance. I know how to keep records/documents pertaining to income and expenditure for a certain period after submission of tax return. I know which income should be included in determining the taxable income. D. TAX COMPLIANCE I am a registered tax payer with Tax Identity Number. I file my tax returns and meet the entire requirement by the due date. I correctly report tax liabilities. I pay taxes on time, mostly by the date stipulated in the law.
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