Repositioning the Nigerian Tax System for Sustainable Development:

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Fagbemi, T.O.
Ajibolade, S.O.
Arowomole, S.S.A.
Ayadi, M.F.
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Tax revenue constitutes a major source of revenue for most modern governments but this has not been the case with the Nigerian economy. The Nigerian tax system is characterised by low level productivity attributed largely to deficiencies in the tax administration and collection system and tax payers' apathy. The need to reposition non-oil tax revenue as number one source of sustainable revenue has been emphasised in many quarters. Following previous studies' suggestion that high collection of tax revenue would involve high voluntary taxpayers' compliance which could only be achieved if the taxpayers positively perceived the tax administrative system and tax law fairness, this paper examines the perception of taxpayers about the Company Income Tax administration in Nigeria. It attempts to establish whether any relationship exists between perception of taxpayers about tax administration system features and their compliance. Data obtained from one hundred and forty-four (144) companies' income tax payers using a questionnaire are analysed using means, standard deviation, Pearson's correlations and regression analysis. The results reveal a moderate positive perception about the tax administration structures and procedures, moderate tax knowledge and a high negative perception about governance in the collection and use of tax revenue. Findings also show that, there is a moderate level of compliance attitude. Significant positive correlations are found between perception about the tax administration structures and procedures; tax knowledge; perception on governance practices and compliance attitude, the most significant relationship however is found between tax knowledge and compliance attitude. The study recommends improvements in the education of taxpayers and in tax system's governance practices.
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Companies Income Tax Administration , Tax Payers' Knowledge,
Fagbemi,T.O. (2011) Re: Repositioning the Nigerian Tax System for Sustainable Development: Role of Business Taxpayers' Perception of the Company Income Tax Administration. Being a Paper Presented At The International Academy Of African Business And Development (IAABD) Held At Athabasca University, Edmonton, Canada.