Background of the Study
Tax morale is a critical determinant of compliance behavior and overall revenue generation. In regions like Zuru LGA, where informal economic activities dominate, understanding the factors that shape tax morale is essential for improving compliance rates. Tax morale is not solely determined by enforcement measures but also by socio-cultural, economic, and psychological factors, including trust in government, perceptions of fairness, and community norms.
While enforcement efforts focus on penalties and audits, these measures often fail to address the root causes of non-compliance, particularly in rural settings. Research in similar contexts highlights the importance of trust in government and equitable tax policies in fostering a tax-compliant culture. However, empirical studies specific to Zuru LGA remain scarce. This study seeks to explore these factors and provide actionable insights for tax authorities.
Statement of the Problem
Tax compliance in Zuru LGA is hindered by low tax morale, leading to revenue shortfalls that impact public service delivery. Existing research does not adequately address the underlying factors influencing tax morale in this region. This study seeks to fill this gap by identifying key determinants of tax morale in Zuru LGA.
Aim and Objectives of the Study
Aim: To explore the factors influencing tax morale in Zuru LGA.
Objectives:
To identify socio-cultural factors affecting tax morale in Zuru LGA.
To assess the role of government transparency in shaping taxpayer attitudes.
To evaluate the impact of perceived fairness in tax administration.
Research Questions
What socio-cultural factors influence tax morale in Zuru LGA?
How does government transparency affect taxpayer attitudes?
What role does perceived fairness in tax administration play in shaping tax morale?
Research Hypothesis
H₀: Socio-cultural factors do not significantly influence tax morale in Zuru LGA.
H₀: Government transparency does not significantly impact taxpayer attitudes.
H₀: Perceived fairness in tax administration does not affect tax morale.
Significance of the Study
The study provides insights into the socio-cultural and administrative factors influencing tax morale in Zuru LGA. Policymakers and tax administrators can use these findings to design inclusive strategies that foster compliance.
Scope and Limitation of the Study
This study is limited to taxpayers in Zuru LGA and focuses on factors such as socio-cultural influences, government transparency, and tax fairness. Limitations include access to reliable data and potential biases in self-reported information.
Definition of Terms
Government Transparency: Openness and accountability in government actions and policies.
Socio-Cultural Factors: Social and cultural influences on individual behavior.
Tax Fairness: The perceived equity of tax policies and administration.
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