IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 12 2023
DOI: https://doi.org/10.56201/jafm.v9.no12.2023.pg78.89

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Effect of Withholding Tax on Income of Public Servants and Revenue Generating Capacity of Nigerian Government

Nwaigburu Kingsley Eze , Joseph Fineboy Ikechi

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Abstract

This study examines the relationship of withholding tax on income of public servants and revenue generating capacity of Nigerian Government. A sample size of 30 respondents was used for the study base on the respondents' knowledge of the subject matter. Simple random sampling techniques was used in the distribution of the questionnaire. Presentation and analyses of data collected as well as testing of the hypotheses were done using percentage distribution frequency and Spearman's Rank correlation coefficient analysis. It was revealed that there is a significant relationship between withholding tax and government revenue generating capacity. It was observed that there is a significant positive relationship between withholding tax and income of public servants. As a matter of urgency, it is recommended that there should be the introduction of a comprehensive tax administration reforms that would eliminate loopholes in tax laws, policies and administration. Such reforms should reduce to the least minimum tax avoidance and tax evasion. A simpler tax system with a limited number of rates is critical to fostering taxpayer compliance. There should be focus on simplifying taxes, procedures and structures. Simplicity of the tax system and legislation is the guiding principle for effective tax collection. This makes tax administration less challenging.

Withholding Tax, Public Servants, Government Revenue, Tax Avoidance and Evasion,

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References:

Adereti, S.A., Sanni, M.R., & Adesina, J.A. (2011). Value added tax and economic growth of
Nigeria. European Journal of Humanities and social Sciences 10(1).

Bhartia, H.L., 2009. Public Finance. 14th Edition, Vikas Publishing House PVT Ltd, New Delhi.

Bird, R.M., (1991). Tax administration and Tax reform: reflections on experience in tax policy
in developing Countries, ed. by Khalilzadeh- Shirazi J and Shah A.A. World Bank
Symposium, Washington D.C.
Ezejelue, A.C and Ihendinihu, J.U (2006).Personal Income Taxation in Nigeria. LIins
Nig. Okigwe.

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