DETERMINANTS OF TAX MORALE

ABSTRACT

This research examined the determinants of tax morale. The objectives of this study was to ascertain the effect of fairness of the tax system, perception of the tax authority, tax complexity, perception of tax evasion, and tax payers trust in government on tax morale. The study adopted a questionnaire survey as the method of investigation. The population of this study covers tax payers in Edo State, comprising the 200,000 tax payers in the State. Using the Taro Yamane (Yamane, 1973) formula; a sample size of 99.95 ≈ 100 was adopted. A total number of 110 questionnaires were administered as a research instrument to elicit responses. The Ordinary Least-Square regression technique was used to analyse the data in order to achieve the research objectives. The study finds that fairness of the tax system, perception of tax authority, perception of tax evasion, and trust in government all have significant relationship with tax morale. However, tax complexity has an insignificant relationship with tax morale. The study recommends that fairness and transparency in the tax system should be promoted, professionalism and accountability of the tax authority should be improved on, ethical and social implications of tax evasion should be emphasized, transparency and accountability in government spending should be enhanced, Investments should be made in tax education and awareness programs, collaboration and dialogue with taxpayers should be fostered, and regular research and monitoring of tax morale determinants should be undertaken.