Institutional Factors and Personal Income Tax Compliance in Kaduna State-Nigeria

Abstract

This study investigates the Institutional factors and Personal income tax compliance in Kaduna State- Nigeria. The population consist of all 991 registered self-employed business men and women that registered with the Directorate of Poverty Alleviation and lives in Kaduna, kafanchan  and Zaria cities of the State. Stratified random sampling was used to select the 285 respondents that form the sample size. Data were collected through administering of questionnaire while the techniques for data analysis are the descriptive statistics and multiple regressions. The study finds among others that good governance and taxpayers’ awareness have a positive significant relationship with the level of taxpayers’ compliance in the State. The study, therefore recommends that effective communication is necessary in order to publicize tax activities, mainly on compliance issues to the general public. Also, transparency and accountability should be the guiding principles in thought and action of government as the basis for good governance in the State. This can be achieved through aggressive human capital development, as this will go a long way in encouraging taxpayers to be more compliant in the state.

Keywords: Institutional Factors. Personal Income Tax, Tax Compliance