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The Determinants of Tax Payers Attitude in Some Selected States (Nigeria)

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The Determinants of Tax Payers Attitude in Some Selected States (Nigeria).


This study sought to obtain the determinant of taxpayers’ attitude in the South-eastern part of Nigeria. It was premised on the belief that the taxpayers’ level of education, level of income, family pressure, and religious beliefs could be responsible for the various attitudes they show towards tax payment which include:

Complete tax evasion attitude, Partial tax evasion attitude, and Compliance attitude. The study covered 334 taxpayers from four work sectors; Civil service, Businessmen, Company workers, and Academics in four states of the country’s southeast zone; Abia, Anambra, Enugu and Imo state, in a research survey.

Data were collected from them using a Structured – Undisguised questionnaire sensitively designed to capture their attitudinal constructs towards tax payment.

The data collected were analysed using Pearson’s Product Moment Correlation (γ) simply because the study would need to obtain the degree of association (correlation) between some sensitive data and the three general attitudes towards tax payment.

The study found that 296 of the respondents responded favourably in the survey conducted on them. This produced a significant percentage response rate of 89.16%.

Also, the survey could be said to be approximately equally distributed among the respondents’ gender as it covered 139(46.96%) females and 157(53.04%) males.

On the objectives set for this study, it was found that there is a significant positive relationship between the respondents’ (Married and Widows) family pressure and attitudes (Complete evasion, Partial evasion and Compliance) to tax given the Pearson’s correlation (γ) of .776**, .740**, .492** respectively.

In addition to this, the study found that, majority of the those that said they have family pressure, their area of family pressure is finance, and of course.

The study’s objective two was achieved through the findings that substantiate the significant correlation between the respondents’ level of income and the attitude they all show towards tax payment, given the Pearson’s correlation (γ) of .844**, .874**, .582**.

Also, the study found that there is a significant relationship between the respondents’ level of education and there tax compliance level (γ = .792**) as well as the respondents’ religious belief and their tax compliance level (γ = .665**) Found in the study, it was concluded that there would be a complete tax evasion attitude from a taxpayer who has high family pressure resulting from his/her financial problem.

More so, any taxpayer who perceives that his/her take home income is small compared to his/her family responsibilities can show unfavourable attitude towards tax payment.

In the same vein, the taxpayers’ religious beliefs have something crucial to do as far as their attitude towards tax payment is. Those whose beliefs are strong will hardly evade tax payment let alone the low believers who would not see how unjustified it is to evade tax.

Finally therefore, it should be remembered that the taxpayers’ level of education coupled with how much aware they are about tax payment, can make them hardly evade tax except for those who, despite the attended school but do not know what the tax are actually collected for.

For generalization purpose, further similar studies can be carried out to cover other five geo-political zones of the country as well as in other African countries so that the attitude of taxpayers in the nation and in the continent of Africa can be well understood.


Title Page ii
Declaration iii
Approval iv
Dedication v
Acknowledgements vi
Abstract vii
Table of Contents viii
List of Tables xi


1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 3
1.4 Research Questions 4
1.5 Research Hypotheses 4
1.6 Scope of Study 4
1.7 Limitations of the Study 5
1.8 Significance of the Study 6
1.9 Operational Definition of Terms 6
References 7


2.0 Introduction 9
2.1 Concept of Tax 9
2.2 Types of Tax 10
2.3 Classification of Taxes 10
2.4 Reason for Taxation 12
2.5 Review of Nigerian Tax Laws to date 13
2.6 Personal Income Tax management Act (TMA) 15
2.7 Company Income Tax Act (ITMA) 16
2.8 Capital Gain Tax Decree 1967 (CGTA) 16
2.9 Sales Tax: Decree 1986-1988 16
2.10 Value Added Tax (VAT) 16
2.11 Capital Income Tax Decree 1979 (CIITD) 17
2.12 Petroleum Profit Tax Decree 1979 (PPTD) 17
2.13 Efficiency in Tax Enforcement 17
2.14 The determinant of taxpayers attitude 18
2.14.1 Situational Characteristics 18
2.14.2 Positional Influence 18
2.14.3 Peer Pressure 19
2.14.4 Family Influence 20
2.14.5 Quality of Work Experience 20
2.14.6 Economic Situation 21
2.14.7 Machiavellianism 22
2.14.8 Taxable Capacity 22
2.14.9 Tax Structure 25
2.14.10 Politico-Administrative Factors 27
2.14.11 Tax payers obligation and Compliance 28
2.15 Individual characteristics 31
2.15.1 Locus Control 31
2.15.2 Gender 32
2.15.3 Religious Morality 32
2.15.3 Personal Value 33
2.16. The determinant of tax compliance 33
2.17. Tax payers obligation and compliance 33
References 35


3.1 Introduction 38
3.2 Research design 38
3.3 Sources of data 38
3.4 Population of the study 38
3.5 Sample size determination 39
3.6 Description of data collection instrument 40
3.7 Validity of the research instrument 41
3.8 Reliability of the research instrument 42
3.9 Data analysis method used 43
References 45


4.1 Analysis of Administered Questionnaires 46
4.2 Analysis of Respondents’ Demographic Data 47
4.3 Analysis of Research Related Data 56
4.4 Test of Hypothesis 67
4.4.1 Test of Hypothesis one 67
4.4.2 Test of Hypothesis two 68
4.4.3 Test of Hypothesis three 70
4.4.4 Test of Hypothesis four 71


5.1 Discussion of Findings 73
5.2 Conclusions 75
5.3 Recommendation for further Studies 76
Bibliography 78
Appendix I: Letter of Questionnaire


1.1 Background of the Study

In developed economies of the world, taxation provides the bulk of government revenue for administration and development.

Government requires these taxed funds to finance some basic amenities which include social and economic infrastructures like health services, basic education, motorable roads, the maintenance of law and order and the provision of public utilities etc.

These are benefits of the state and are structured in such a way that the consumption of the products by all individuals in the state is non-rival in the sense that one person’s partaking of the benefits does not reduce the benefit available to another (Musgrave:1985:10).

That is, the benefit derived by one person is externalized in that, it becomes available to another person at the same time (Urnoh:1997:24).

The private sector cannot provide these types of goods (social goods), the structure of the goods provided by them is internalized, and the benefit of consumption excludes consumption by another… “the market mechanism is well suited for the provision of private goods” Musgrave (1985:10).

It is based on exchange and this can occur only where there is an exclusive title to property, which is to be exchanged.

It furnishes a signaling system where by procedures are guided by consumer demands. On the other hand, it is inefficient to exclude any consumer from partaking of the benefit of social goods when it is quite obvious that participation would not reduce consumption by another regardless of earning differential.

However, the provision of these social and economic infrastructures and other complementary facilities obviously requires financial resources and supply of which is from the imposition of tax.

In spite of the multiple benefits of taxation creation amongst the populace, taxable persons are still cajoled and compelled to pay their taxes.

They seem to put up resistance that create the impression that they are not happy paying the tax or that they are paying more than they are receiving in terms of social amenities.


Adams, J. S. (1965), Inequity in Social Exchange, in L. Berkouitz Advance in Experimental social Psychology, Academic press Vol. 2. p. 265-299.

Adegbite, O. [1986]: The Relevance of Ethics a Practical Problem Analyzed Business long range planning p.89-103.

Agayi, J. O. [1996]: Tax Payer Education: A look at FIRS Imitative”. The Nigerian tax new Vol. II No, 33 p.9.

Aguilar, F. J. [1987]: Scanning the Business Environment Macmillan, New York. Ajayi, J .O, (1996): Tax Payer Education”. A look at FIRS Initiatives Nigerian Tax News, Vol. 11, No.3.

Anderson, C. R. and Paine F. T. [1975]: Managerial Perceptions and Strategic Bahaviour. Academy of Management Journal Vol. 18. p. 811-823.

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