Original Research Article | OPEN ACCESS

Slippery Slope Framework and Tax Compliance among Corporate Taxpayers in Nigeria

For correspondence:-    

Received: December 31, 2019        Accepted: March 31, 2020        Published: March 31, 2020

Citation: Slippery Slope Framework and Tax Compliance among Corporate Taxpayers in Nigeria. Account Tax Rev 2005; 4(1):118-131 doi:

© 2005 The authors.
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Abstract

The impact of slippery slope framework (trust and power) on tax compliance among corporate taxpayers in Nigeria has been examined to ascertain connections if any between the variables of the study. The survey research design was employed using primary data sourced from the administration of (231)two hundred and thirty-one copies of a structured questionnaire on the respondents of three states within the Southwest geopolitical zone of the country. Data obtained were analysed using descriptive statistics and chi-square techniques. Using mean>0.5 (significant) and mean<0.5(insignificant). Average mean of trust and tax compliance equals 0.78>0.5 and that of power of administration 0.28<0.5.The average²) value of 50.89 with value; 0.001<0.05 level of significance implies that trust has a significant influence on tax compliance in Nigeria. Also, the average²) value of 49.06 with sig. value of 0.000<0.05 level of significance implies the existence of a link between the power of administration and tax compliance, though not voluntary compliance .From the above, trust, as confirmed by various studies, influence voluntary compliance. At the same time, though a relationship exists between the power of administration and tax compliance, a larger number of respondent disagreed that tax audit with hatch punishment doesn’t induce compliance. The study, therefore, suggests that the government should demonstrate transparency and accountability in the use of tax proceed to boost public confidence as this will encourage voluntary compliance. The government should use more of tax monies on life-improving projects that impact positively on the citizenry rather than frivolous ones.

Keywords: Slippery slope framework, Trust, Power, Tax Compliance, Corporate taxpayers