Marital status and educational background as determinants of tax compliance in Nigeria

Abstract

This study analysed the influence of marital status and educational background of the tax payers on Personal Income Tax compliance in Nigeria. The study employed a cross-sectional design which made use of a structured questionnaire. The population of the study comprised of employees who were 18 years and above in the public and private organizations as well as artisans and traders to represent the informal sector. The Taro Yamane formular was used to determine the sample size of 400 which was distributed among the three Southwestern states selected namely, Lagos, Oyo and Osun using proportionate sampling technique. Data were analysed using percentages, mean, standard deviation and Analysis of Variance (ANOVA). Findings showed that marital status significantly influence personal income tax compliance in Nigeria (P=0.005) and mean scores showed that singles were more compliant than other categories of marital status, like the married and divorced. Also, educational background does not significantly influence personal income tax compliance (P=0.338).The study concluded that in order for the government to achieve a desirable level of tax compliance among the populace, there is need for government to encourage the populace. Furthermore, the tax law should be more explicit and positioned in such a way as to improve its applicability.