Analysis of Factors Influencing Tax Compliance in Kwara State


  • Abdulfatai Olanrewaju Nurudeen
  • A. Almustapha Aliyu
  • Abdulsalami Usman
  • Taophic Olarewaju Bakare


Tax Compliance, Tax Morale, Tax Audit, Tax Payer’s Confidence


Abstract Low level of tax compliance has been a matter of serious concern in many economies like Nigeria, because tax revenue is tied to government performance. This study examined the factors influencing tax compliance in Kwara State. Specifically, the study investigated the effects of tax audit, tax fund management and tax payers’ confidence in the tax operational system on tax compliance in the State. The study adopted cross-sectional research survey design and stratified sampling technique was used in selecting 400 respondents. Data were obtained from primary source through a 5-point Likert scale questionnaire and were analyzed using Ordinary Least Squares (OLS) regression method. The study revealed that the Use of Taxpayers Fund (UTF), effectiveness of Tax Operational System (TOS) and Tax Audit and Penalties (TAP) had significant effect on tax compliance with co-efficient of 0.571, 0.224 and 0.20 at 5% level of significant respectively on tax compliance. Based on these findings, the study concluded that these factors had significant effects on tax compliance in Kwara State. It was therefore recommended that Kwara State Government should ensure that tax funds are deployed towards developmental projects and it should intensify efforts to educate people more on tax legislations with a view to eliciting more compliance and economic growth in the state.

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