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Socio-Economic Determinants of Tax Compliance Level Among Artisans in Ebonyi State, Nigeria

Ama Ibiam Obasi

Abstract

The study examined the effect of socio-economic determinants on tax compliance level among artisans in Ebonyi State. The dependent variable was tax compliance level while the independent variables were tax knowledge, fairness, penalty rate and audit probability. The data used in the study were sourced from primary data using a structured questionnaire method. The population of the study consists of 785 respondents made up of 309 revenue collectors and 476 artisans. The study employed Taro Yamane formular to determine the sample size of 265 respondents. The stratified sample formular was also employed in order to ascertain the size of the sample in the stratum. The effect of independent variables on dependent variable were examined using binary logit regression model that was stated in its multiple forms and computed with the aid of SPSS version 20. The Hosmer-Lemeshow test result showed that the overall model of the study was significant at 5% level of significance. The result of the hypotheses tested, in specific terms showed that tax knowledge, fairness and audit probability have positive and significant effect on tax compliance level among artisans in Ebonyi State while penalty rate revealed negative but significant effect on tax compliance level among artisans in Ebonyi State. The study recommends, among others, that Ebonyi State Internal Revenue Board should ensure that there is strict enforcement of tax penalty rate in order to prevent artisans from evading tax payment in Ebonyi State.

Keywords

Tax KnowledgeFairnessPenalty RateAudit ProbabilityTax ComplianceArtisansEbonyi StateRevenue Collectors

References

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