EFFECTS OF TAX COMPLIANCE ON REVENUE GENERATION IN NORTH CENTRAL STATES, NIGERIA

Henry, A. Eggon, PhD, Aso, Abdullahi Nana and Atiku, Adam Shuaibu
Volume 12 Issue 1

Abstract

This study examined the effect of tax compliance on government revenue generation in north central states, Nigeria using the survey research design. The ordinal logistic regression model was adopted in the study. The study measured tax compliance using five components of tax compliance which include Tax Policy (TXP), Tax Laws (TXL), and Tax Administration (TXA). Data for the study were collected using the questionnaire and the study data were collected from sample of 400 out of which 356 were fully returned. The descriptive analysis was carried out on the collected data and inferences were draw based on the data. The study used the multinomial logistic regression to analyze the data and findings from the study revealed that tax policy was found to have a positive and significant effect on revenue generation in North Central States of Nigeria. Tax laws show a positive coefficient and statistically significant relationship with revenue generation in North Central States of Nigeria. Also, tax administration shows a positive coefficient but statistically insignificant relationship to revenue generation in North Central States of Nigeria. Based on the findings, the study recommends that there should be intensified efforts by the government in enhancing the tax policies to encourage the tax payers in compliance, more awareness especially in respect of tax laws in the community as it aims at friendliness to tax payers both formal and informal sectors. The stakeholders in the tax sector should focus on tax information and awareness creation at all levels of governments in order to equip the tax taxpayers with the required knowledge, and adjustment should be made within the tax system, more support services and infrastructures should be provided to convince taxpayers that their tax money is working. Keywords: Tax Compliance, Tax Policy, Tax Law, Tax Administration, Internal Generated Revenue

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