The Impact of Ethical Tax Behaviour on Tax Compliance of Tax Authority and Corporate Taxpayers of listed Manufacturing Companies in Nigeria

Oladipo, O. A. and Ogunjobi, J. O. and Eluyela, F. D. The Impact of Ethical Tax Behaviour on Tax Compliance of Tax Authority and Corporate Taxpayers of listed Manufacturing Companies in Nigeria. Academia Letter. pp. 1-10. ISSN 4698.

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Abstract

The development of tax payment decision-making models (Sociological, Economical and Psychological) has focused on economic and behavioural factors affecting tax compliance. The issue of tax evasion, which remains an ethical problem for companies, has been a general concern in developed and developing countries alike. The main problem of this study is low tax collection on the part of relevant tax authority, couple with non-tax compliance behaviour of the corporate taxpayers in Nigeria. This study examined the effect of tax fairness of tax authority on tax compliance behaviour of taxpayers in the Nigerian manufacturing sector. This study adopted a survey research method, and 400 copies of the questionnaire were administered to the selected listed manufacturing companies in Nigeria and relevant tax authority staff (FIRS). Theory of Planned Behaviour underpinned this study and Correlation analysis, Analysis of Variance (ANOVA) and Multiple Regression analysis were also employed. The study found that there is a significant level of tax compliance among the listed manufacturing company in Nigeria. The study also shows that the tax authority’s perception of fairness of -2.769 (0.006) has a significant impact on corporate taxpayer’s compliance behaviour. Based on the above findings, the study recommends that taxpayers need to file accurate tax returns, transparency in total income declaration and minimize the risk of breaching of tax laws within the entity, while tax authority should apply tax laws consistently without bias (fairness), also adhere strictly to moral and ethical code of conduct. Keywords: Taxes, Ethics, Tax Authority, Manufacturing, Nigeria

Item Type:	Article
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Faculty of Law, Arts and Social Sciences > School of Management
Depositing User:	Mr OLUFEMI OLADIPO
Date Deposited:	18 Feb 2022 09:32
Last Modified:	18 Feb 2022 09:32
URI:	https://eprints.lmu.edu.ng/id/eprint/3758

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