ABSTRACT
The study examined tax payers’ knowledge, tax laws’ complexity and tax compliance among self-employed of personal income tax payers in Nigeria. Specifically, the study ascertained the impact of tax payers’ knowledge on tax compliance, as well as the impact complexity of tax laws on tax compliance in Nigeria.
This study adopted the survey research strategy and the cross-sectional research design. Data were obtained from the respondents; self-employed of personal incomes tax payers through the use of questionnaire. The data were analysed using the Linear Regression Estimation Technique with the use of Statistical Package for Social Sciences (SPSS). Prior to the Linear Regression Estimation, each of the questions were summarized using frequency tables, thereafter both the descriptive and the correlation analysis were done.
The results showed that both tax payers’ knowledge and tax laws’ complexity exhibit insignificant positive relationship with tax compliance at 5% level.
The study concluded and recommended that though both dependent variables had insignificant impact on tax compliance, much attention should be paid by tax administrators and practitioners to tax payers’ knowledge and complexity of tax laws in an attempt to enhance tax efforts in Nigeria. There is need for State Internal Revenue Service (SIRS) and Federal Internal Revenue Service (FIRS) to embark on tax education and awareness campaign among self-employed income tax payers. Specifically, tax regulatory authorities should make steps to enhance tax compliance by further improving tax awareness through workshop, seminar, as well as simplification of tax laws.
