Effect of Economic Determinant Variables on Voluntary Taxpayer Compliance among Self-Employed

Abstract

The paper examines the effect of economic determinant variables on voluntary taxpayer compliance among self-employed individuals in Borno State, Nigeria. Survey research design was used in data collection. The paper used a sample of 105 self-employed taxpayers in Borno State, Nigeria who voluntarily comply. They were grouped into Major, Intermediate and Small. The paper discovered that the level of income and the imposition of penalties by the tax authority do not affect voluntary taxpayer compliance in the State. It that compliance would be easily increased if governments simply imposed more severe fines. This, however, is inconsistent with major theoretical and empirical studies. The paper recommends that further research in this area should include more economic variables and consider working with a larger sample by taking the whole of the population of this study and also including the unregistered self-employed individuals in the study area.

Keywords: Economic Determinants, Voluntary Tax Compliance, Borno State Self-employed