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Effect of Tax Morale on Personal Income Tax Compliance in Kogi State

Salihu, Muhammed Ohize, .

Abstract

This study addresses the issues of tax morale and personal income tax compliance in Kogi State. The compliance behavior has been very low which has in turn adversely affected the revenue of the state. This study examines the effect of tax morale on personal income tax compliance in Kogi, State. The main objective of this study is to determine the effect of Tax Morale on the taxpayer in compliance with tax policies of government in Nigeria. Specific objectives are to: Determine the extent of the tax payer education and its effect on tax compliance, ascertain the effect of trust in government on tax compliance, and ascertain the tax payer’s confidence in the legal system on tax morale. The population consists of 100 self-employed businesses that registered with the Kogi State Internal Revenue Service and resides in Lokoja Kogi, State. However, the sampling size of the study covers the total number of eighty (80), based on the questionnaire intends to be distributed; Yamane (1964) formula was used for sample size determination. The data were collected through questionnaire while descriptive statistics and Chi-Square were used to analyze the data. The study finds that trust governance, tax equity and legal system of tax have positive significant effects on the level of taxpayers’ compliance. The study recommends that government should sustain good governance and ensure tax equality and fairness.

Keywords

personal income taxcompliance behaviourtax moraletax avoidancetax evasiontrusts in government.

References

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