PERSONNALITY ATTRIBUTES AND TAX MORALE AS PREDICTORS OF WILLINGNESS TO PAY TAX: A STUDY OF TAX PAYERS, OGUN STATE NIGERIA.
From the history of revenue generation in Nigeria, various governments; local, state and federal have tried to increase the level of tax compliance. Most often adopted is an obdurate attitude towards all taxpayers by applying laws and regulations to sanction and fine evaders. These means of enforcement proved to be without a significant success. Towards the end of the 20th century, governments have realized that a change is needed in order to increase revenue generation through tax collection. Adopting psychological strategies, rather than economic laws and regulations, could impel voluntary decisions for tax payment. This paper therefore examined personality attributes (openness, conscientiousness, extraversion, agreeableness, neuroticism) and tax morale as predictors of Ogun State taxpayers’ willingness to pay.An ex-post facto research design was adopted, while participants comprised 154 taxpayers randomly selected at the tax paying station in Ogun State. Personality attributes and tax morale were hypothesized to jointly and independently predict tax payers’ willingness to comply with tax regulations. Gender difference in the willingness to pay also was also investigated. Standardized psychological instruments were used to measure the variables in the study.Results showed that each of extraversion (r = .34; p<0.05), agreeableness (r = .56; p<0.01), openness (r = .61; p<0.01), and tax morale (r = .66; p<.01) correlated positively, while conscientiousness (r = -.55; p<0.01) and neuroticism (r = .58; p<0.01) correlated negatively, with willingness to pay tax. All the variables jointly accounted for 83% variance in willingness to pay tax [R = 91; R2 = 0.83; F (6,147) = 121.92; p<0.01]. But the personality factors alone accounted for 81% variance in willingness to pay tax [R =.90; R2 = .81; F (6,148) = 123.41; p<0.01]. There was no gender difference in willingness to pay tax t (152) = 0.480; p>0.05. The study concluded that higher personality attributes on openness to experience, conscientiousness, and agreeableness, and low neuroticism disposition, including high tax morale predisposes taxpayers’ willingness to pay in Ogun State whereas no gender difference in willingness to pay was established. It is recommended that tax implementers should understand the personality of tax payers and educate them on tax morale in other to increase their willingness to pay tax.
Aiko, R., & Logan, C. (2014).Africa's willing taxpayers thwarted by opaque tax systems, corruption. Afrobarometer Policy Paper No. 7. afrobarometer.org/sites/default/files/.../Briefing%20paper/ab_r5_policypaperno7.pdf.
Ajzen, I.(2002). Perceived Behavioral Control, Self-Efficacy, Locus of Control, and the Theoryof Planned Behavior. Journal of Applied Social Psychology, 32, 665–683. doi:10.1111/j.1559-1816.2002.tb00236
Ajzen, Icek (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50 (2), 179–211. doi:10.1016/0749-5978(91)90020-T
Ali, M. M., Cecil, H. W., & Knoblett, J. A. (2001). The effects of tax rates and enforcement policies on taxpayer compliance: A study of self-employed taxpayers. Atlantic Economic Journal, 29(2), 186-202.
Ali, M., Fjeldstad, O. H., & Sjursen, I. H. (2014).To pay or not to pay?Citizens’ attitudes toward taxation in Kenya, Tanzania, Uganda, and South Africa. World Development, 64, 828-842.
Alm, J., Sanchez, L., & De Juan, A. (1995). Economic and non-Eonomic Factors in Tax Compliance. European Journal of Accounting, Auditing and Finance Research, 48(1), 3-18.
Azjen, I. & Madden, T. (1986). "Prediction of goal-directed behavior: Attitudes, intentions, and perceived behavioral control". Journal of Experimental Social Psychology, 22, 453–474. doi:10.1016/0022-1031(86)90045-4
Chan, C. W., Troutman, C. S., & D, O. (2000). An expanded model of taxpayer compliance: Empirical evidence from the United States and Hong Kong. Journal of International Accounting, Auditing and Taxation, 9(2), 83-103.
Chow, C. Y. (2004). Gearing up for the self assessment tax regime. Tax Nasional, 2nd Quarter, 20-23.
Christian, C. W., & Gupta, S. (1993). New Evidence on Secondary Evasion. The Journal of American Taxation Association, 15(1), 72-93.
Clotfelter, C. T. (1983). Tax evasion and tax rates: An analysis of individual returns. Review of Economics and Statistics, 65(3), 363-373.
Cobham, A. (2005). Tax evasion, tax avoidance, and development finance. Queen Elisabeth House Working Paper No. 129.
Collins English Dictionary: 30th Anniversary Edition (2009). UK: Collins
Colman, A. (2015). Theory of Reasoned Action. A Dictionary of Psychology. UK: Oxford University Press
Cummings, R.G., Martinez-Vazquez, J., McKee, M., & Torgler, B. (2009).Tax morale affects tax compliance: Evidence from surveys and an artefactual field experiment. Journal of Economic Behavior & Organization, 70(3), 447-457.
Feinstein , J. S. (1991). An Econometric Analysis of Income Tax Evasion and its Detection. The RAND Journal of Economics, 14-35.
Fischer, C. M., Wartick, M., & Mark, M. (1992). Detection profitability and taxpayer compliance: A review of the literature. Journal of Accounting Literature, 11, 1-49.
Fjeldstad, O., & Heggstad, K. (2012). Building Taxpayer Culture in Mozambique, Tanzania and Zambia: Achievements, Challenges and Policy Recommendations. Norway: NORAD.
Franzoni, Luigi A., (1998). Tax Evasion and Tax Compliance. Available at SSRN: https://ssrn.com/abstract=137430 or http://dx.doi.org/10.2139/ssrn.137430
Freire-Serén, M. J., & Panadés, J. (2013). Do Higher Tax Rates Encourage/Discourage Tax Compliance? Modern Economy(4), 809.
Fuest, C., & Riedel, N. (2009). Tax evasion, tax avoidance and tax expenditures in developing countries: A review of the literature. Report prepared for the UK Department for International Development (DFID), 1-69.
Guardian.(2015). Africa losing billions from fraud and tax avoidance.https://www.theguardian.com/global-development/2015/feb/02/africa-tax-avoidancemoney-laundering-illicit-financial-flows.
Hai, O. T., & See, L. M. (2011). Intention of Tax Non-compliance: Examine the Gaps. International Journal of Business and Social Science, 2(7), 79-83.
Integrity Management Toolbox (2017 ). Tax Compliance.http://www.waterintegritynetwork.net/imtoolbox/tax-compliance/
International Monetory Fund. (2011). Rvenue Mobilization in Developing Countries. IMF.
Isbell, T. (2017) Tax Compliance Africans Affirm Civic Duty But Lack Trust In Tax Department Afrobarometer Policy Paper No. 43 | December 2017
Jackson, B. R., & Milliron, V. C. (1986). Tax Compliance Research: Findings, Problems and Prospects. Journal of Accounting Literature, 5(1), 25-65.
James, S and Alley,C. (2004). Tax Compliance, Self-Assessment and Tax Administration Journal of Finance and Management in Public Services, 2(2), 27-42
John, O. P., & Srivastava, S. (1999). The Big-Five trait taxonomy: History, measurement, and theoretical perspectives. In L. A. Pervin & O. P. John (Eds.), Handbook of personality: Theory and research (Vol. 2, pp. 102–138). New York: Guilford Press.
Joulfaian, D., & Rider, M. (1998). Differential taxation and tax evasion by small business. National Tax Journal, 51(4), 676-687.
Kastlunger, B., Lozza, E., Kirchler, E., & Schabmann, A. (2013). Powerfulauthorities and trusting citizens: The Slippery Slope Framework and Tax Compliance in Italy. Journal of Economic Psychology, 34, 36-45.
Kim, S. (2008). Does political intention affect tax evasion? Journal of Policy Modeling, 30(3), 401-415.
Kirchler, E., Hoelzl, E., & Wahl, I. (2008). Enforced versus Voluntary Tax Compliance: The 'slippery slope' framework. Journal of Economic Psychology, 29(2), 210-225.
Kirchler, E., Hofmann, E., & Gangl, K. (2012). From Mistrusting Taxpayers to Trusting Citizens: Empirical Evidence and Further Development of the Slippery Slope Framework. 125.
Mittone, L. and Patelli, P. (2000). Imitative Behaviour in Tax Evasion, In Economic Simulation in a Swarm: Agent-Based Modelling and Object Oriented Programming. Luna, F. and Stefansson, B. eds., 133-158. Amsterdam: Kluwer.
Modugu, P. K., Eragbhe, E., & Izedonmi, F. (2012). Governmnet Accountability and Voluntary Tax Compliance in Nigeria. Research Journal of Finance and Accounting, 3(5), 69-76.
Muehlbacher, S., Kirchler, E., & Scwarzenberger, H. (2011). Voluntary versus Enforced Tax Compliance: Empirical Evidence for the "Slippery Slope" Framework. European Journal of Law and Economics, 32(1), 89-97.
Noar, S. M.; Zimmerman, R. S. (2005). Health Behavior Theory and cumulative knowledgeregarding health
behaviors: are we moving in the right direction?. Health Education Research. 20 (3), 275–
OECD. 2013. “Tax and Development: What Drives Tax Morale?” Organization for Economic Co-operation and Development. http://www.oecd .org/ctp/tax-global/TaxMorale_march13.pdf.
Palil, M. R., & Mustapha, A. F. (2011). Factors affecting tax compliance behaviour in self assessment system. African Journal of Business Management, 5(33), 12864-12872.
Richardson, G. (2006). Determinants of tax evasion: A cross-country investigation. Journal of International Accounting, Auditing and Taxation, 15(2), 150-169.
Sabirianova, P., Buttrick, S., & Duncan, D. (2009). Global reform of personal income taxation 1981 - 2005: Evidence from 189 countries. Andrew Young School of Policy Studies Research paper Series, 08(08).
Silvani, C., & Baer, K. (1997). Designing a tax administration reform strategy: Experiences and guidelines.
International Monetary Fund Working Paper
Spicer, M., Becker, L.A. (1980). Fiscal Inequity and Tax Evasion: An Experimental Approach. National Tax Journal, 33(2), 171-175.
Terkper, S. (2003). Managing small and medium size taxpayers in developing economies. Tax Note International,
Togler, B. (2007). Speaking to Theorists and Searching for Facts: Tax Morale and Tax Compliance in Experiments. Journal of Economic Surveys, 16(15), 657-84.
United Nations Economic Commission for Africa. (2015a). Track it! Stop it! Get it! Report of the High Level Panel on Illicit Financial Flows from Africa. Commissioned by the AU/ECA Conference of Ministers of Finance, Planningand Economic Development.
United Nations Economic Commission for Africa. (2015b). Africa loses $50 billion a year through tax avoidance and fraud, report states.http://www.uneca.org/stories/africa-looses-50-billionyear-through-tax-avoidance-and-fraud-report-states.
Van Dijke, M., & Verboon, P. (2010). Trust in authorities as a boundary condition to procedural fairness effects on tax compliance. Journal of Economic Psychology, 31(1), 80-91.
Wahl, I., Kastlunger, B., & Kirchler, E. (2010). Trust in Authorities and Power to Enforce Tax Compliance: An
Empirical Analysis of the "Slipery Slope Framework". Law and Policy, 32(4), 383-406.
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.