A Cross-Cultural Survey of Ethical Reasons for Tax Evasion among Nigerian Taxpayers

Abstract

The study empirically assessed tax evasion and the ethical reasons put up to justify it across major tribes/cultures of individual Nigerian taxpayers. Earlier studies were reviewed before questionnaire administration on respondents (n=500). Data were analysed with parametric and non-parametric statistics using SPSS 19. The results show high level of tax evasion and the three ethical reasons examined are found to have strong influence on tax evasion with significant difference along culture and religion. Generally, group identity (tribe/culture and religion) is found to show highest influence on tax evasion as well as its ethical reasons, but the difference is more pronounced for religious identification and participation. Hausas are found to be highest evaders among Nigerians. Similarly, worshipers of traditional religions evade taxes more than any others. Igbos and Yorubas exhibited similar pattern of opinions on ethical reasons for evasion as well as tax evasion. Other variables showing significant relationships include employment category (measuring opportunity to evade), income level (economic factor) and gender. It was concluded that the study support the position from earlier studies that there is a significant relationship between tax evasion and ethical reasons for it and that it varies along tribe/culture and religion groups. Recommendations were made for stakeholders especially revenue authorities and researchers.

Keywords: Tax evasion ethical reasons, culture, developing economy,