Background of the Study
Tax compliance is essential for ensuring adequate revenue generation at the local government level. In Kontagora LGA, like many other regions, tax compliance is a persistent challenge. Understanding the factors that influence taxpayer behavior is crucial for improving tax compliance rates and ensuring sufficient revenue for local development.
Factors such as the perceived fairness of the tax system, the level of trust in local government institutions, economic conditions, and the enforcement of tax laws all play a role in shaping taxpayer compliance behavior. This study aims to identify and analyze these factors, providing a better understanding of why taxpayers in Kontagora LGA may or may not comply with tax obligations.
Statement of the Problem
Low tax compliance in Kontagora LGA has resulted in insufficient revenue generation, hindering local development. While various factors likely contribute to this issue, little research has been conducted to identify the specific influences on taxpayer compliance behavior in the area. This study seeks to fill this gap by analyzing the factors influencing taxpayer compliance in Kontagora LGA.
Aim and Objectives of the Study
Aim: To analyze the factors influencing taxpayer compliance behavior in Kontagora LGA.
Objectives:
To identify the factors that influence taxpayer compliance behavior in Kontagora LGA.
To assess the level of trust in local government institutions and its impact on tax compliance.
To recommend strategies for improving taxpayer compliance in Kontagora LGA.
Research Questions
What factors influence taxpayer compliance behavior in Kontagora LGA?
How does the level of trust in local government impact tax compliance?
What strategies can improve taxpayer compliance in Kontagora LGA?
Research Hypothesis
H₀: There is no significant relationship between taxpayer compliance and factors such as perceived fairness of the tax system.
H₀: Trust in local government institutions does not significantly affect tax compliance behavior.
H₀: Strategies aimed at increasing trust in local government do not improve taxpayer compliance in Kontagora LGA.
Significance of the Study
The findings of this study will help local governments understand the key drivers of taxpayer compliance, offering insights that can guide the design of policies to enhance tax compliance and improve revenue generation.
Scope and Limitation of the Study
The study focuses on the factors influencing tax compliance behavior in Kontagora LGA. Limitations include potential biases in survey responses and challenges in measuring some factors, such as trust in government.
Definition of Terms
Tax Compliance: The extent to which taxpayers adhere to tax laws and regulations.
Taxpayer Behavior: The actions and attitudes of individuals and businesses towards paying taxes.
Local Government Institutions: Government bodies responsible for local administration and services.
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Chapter One: Introduction