Tax Administration Practices and Compliance: Evidence from Kwara State, Nigeria

Abstract

This study examines tax administration practices and their impact on tax compliance in Kwara State, Nigeria. Employing a cross-sectional quantitative survey design, the research utilized stratified random sampling to select 641 stakeholders from the Kwara State Internal Revenue Service (KWIRS). Data collection was conducted via questionnaires, with analysis performed using Partial Least Squares Structural Equation Modeling. The results reveal that both tax enforcement strategies and taxpayer services have significant positive effects on compliance. These findings underscore the importance of robust enforcement mechanisms and high-quality taxpayer services in fostering a compliant tax environment. Additionally, the study highlights the need for effective communication and support for tax policies to achieve desired outcomes. The research concludes that improving enforcement strategies, enhancing taxpayer services, and ensuring proper implementation and communication of tax policies are crucial for promoting tax compliance in Kwara State. The study recommends increased tax audits, improved taxpayer services, taxpayer education, and collaboration with other government agencies to enhance the overall effectiveness of tax administration. This study contributes to the existing literature on tax administration and compliance, particularly within the context of developing economies, and offers valuable insights for policymakers and tax administrators in formulating strategies to enhance tax compliance and improve revenue generation.