Background of the Study
Tax morale, defined as the intrinsic motivation to pay taxes, is a key factor influencing tax compliance. While legal enforcement mechanisms such as audits and penalties exist, a strong sense of civic duty can foster voluntary compliance, reducing administrative costs. In Chibok LGA, low compliance rates raise concerns about the underlying factors affecting tax morale.
Research suggests that determinants such as trust in government, social norms, and perceived fairness of the tax system play a significant role in shaping tax morale. However, these factors vary across cultural and socioeconomic contexts. In Nigeria, and particularly in rural areas like Chibok, tax morale is poorly understood, limiting the effectiveness of compliance strategies.
Understanding the determinants of tax morale is vital for fostering a tax culture that supports local governance and development. This study explores the factors influencing tax morale in Chibok LGA, aiming to provide insights for improving compliance rates.
Statement of the Problem
Tax morale in Chibok LGA appears to be low, as evidenced by poor compliance rates. The lack of empirical studies on the determinants of tax morale in this region hinders the development of effective interventions. Without understanding the root causes, efforts to improve compliance may remain ineffective.
Aim and Objectives of the Study
Aim: To identify and analyze the determinants of tax morale in Chibok LGA.
Objectives:
To examine the role of trust in government in influencing tax morale.
To assess the impact of social norms on tax compliance behavior.
To evaluate the perceived fairness of the tax system in Chibok LGA.
Research Questions
How does trust in government influence tax morale in Chibok LGA?
What is the role of social norms in shaping tax compliance behavior?
How does the perceived fairness of the tax system affect tax morale?
Research Hypothesis
H₀: Trust in government does not significantly affect tax morale in Chibok LGA.
H₀: Social norms have no significant impact on tax compliance behavior.
H₀: Perceived fairness of the tax system does not influence tax morale.
Significance of the Study
This study contributes to understanding the socio-economic and cultural factors that influence tax morale in rural Nigeria, providing policymakers with data to enhance voluntary compliance.
Scope and Limitation of the Study
The study focuses on determinants of tax morale among taxpayers in Chibok LGA. Limitations include potential bias in self-reported data and difficulty accessing remote areas.
Definition of Terms
Tax Morale: The intrinsic willingness to pay taxes.
Social Norms: Shared values and behaviors within a community.
Perceived Fairness: The taxpayer’s perception of equity in the tax system.
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