Taxpayer’s knowledge and voluntary tax compliance amongst self- employed individuals in Edo State, Nigeria

Abstract

The study investigated taxpayers’ knowledge and their voluntary compliance to tax laws within the demographic of self-employed individuals in Edo state. In order to collect information, a survey was employed to acquire feedback from self-employed individuals within Edo state. The data obtained was analyzed using the ordinary least square regression method. The findings from this study revealed that there exist a negative correlation between tax knowledge and compliance. It was further revealed that taxpayer's attitude was a positive factor influencing compliance with tax obligations and laws. Additionally, tax awareness was also noted to have positively affect tax compliance. Given these outcomes, it is advised that policymakers dedicate resources to educational initiatives for taxpayers aimed at improving their knowledge and understanding of tax regulations among the self-employed. These initiatives can serve a critical role in clarifying the tax structure, decreasing inadvertent non-compliance, and promoting voluntary compliance.

Keywords: Tax System, Taxpayer’s Knowledge, Voluntary Compliance