Economic Factors And Personal Income Tax Compliance In Nigeria: A Generalised Ordered Logistic Regression

Abstract :

This paper builds on already existing theoretical and empirical research on the economic factors used in explaining tax compliance. The likelihood that personal income taxpayers in Nigeria will be tax non-compliant, low tax compliant or tax compliant for economic factors are evaluated using the Generalised ordered logistic regression. The findings in this paper provide extra information on the mixed results that have been obtained by empirical research on the subject matter of tax compliance by revealing how economic factors have different likelihood values for individuals to fall into the tax compliant category. This paper recommends that a proper analysis of the peculiar traits of the Nigerian tax system be conducted before decisions are made on the combination of economic factors to be employed to move personal income taxpayers to the tax compliant category.