PITA 2011 and Voluntary Tax Compliance: Towards Achieving Sustainable Revenue Generation in Kaduna State Nigeria

Nyor Terzungwe; Jonathan Agnes Jummai; Mustapha Lateef Olumide

doi:doi:10.11648/j.jfa.20180606.13

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PITA 2011 and Voluntary Tax Compliance: Towards Achieving Sustainable Revenue Generation in Kaduna State Nigeria

Nyor Terzungwe, Jonathan Agnes Jummai, Mustapha Lateef Olumide

Published in Journal of Finance and Accounting (Volume 6, Issue 6)

Received: 1 November 2018 Accepted: 3 December 2018 Published: 2 January 2019

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Abstract

Sustainable governance entails using the compulsory contribution paid to government by her citizens to support law and order, provide security and social amenities for the benefit of present and future generations. Nigeria's Personal Income Tax Act (PITA) 2011 was amended to provide for sustainable tax policies and administration that would secure voluntary tax compliance and guarantee sustainable revenue generation. The amendment introduced a more equitable tax system by providing realistic tax rates, and recommending an efficient and effective tax administrative system, and simpler tax laws. This study examines the determinants of voluntary tax compliance in Kaduna state Nigeria taking self-assessment, income tax rates, and penalties as provided by PITA 2011, with a view to ascertain whether the Act has significantly affected voluntary tax compliance in the State. The population of study is 4925 registered self-employed individuals who are subjected to Direct Assessment system in Kaduna State, Nigeria. A sample 370 respondents was arrived at using the Yaro Yamani formula. Descriptive statistics and multiple regression technique were used to analyze the data. The study reveals that the amended provisions of PITA 2011 on Self-assessment, Income tax rates and Penalty are capable of enhancing voluntary tax compliance but poor knowledge of the tax laws, unstable economy and administrative bottlenecks have affected the potency of the Act. The study therefore recommends among others that the Kaduna state Government employ measures to boost compliance, such as educating tax payers by summarizing the provisions of PITA 2011 in some widely spoken languages and communicating same.

Published in	Journal of Finance and Accounting (Volume 6, Issue 6)
DOI	10.11648/j.jfa.20180606.13
Page(s)	150-161
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Sustainability, Governance, Voluntary, Tax, Compliance and Direct Assessment

References

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APA Style

Nyor Terzungwe, Jonathan Agnes Jummai, Mustapha Lateef Olumide. (2019). PITA 2011 and Voluntary Tax Compliance: Towards Achieving Sustainable Revenue Generation in Kaduna State Nigeria. Journal of Finance and Accounting, 6(6), 150-161. https://doi.org/10.11648/j.jfa.20180606.13

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ACS Style

Nyor Terzungwe; Jonathan Agnes Jummai; Mustapha Lateef Olumide. PITA 2011 and Voluntary Tax Compliance: Towards Achieving Sustainable Revenue Generation in Kaduna State Nigeria. J. Finance Account. 2019, 6(6), 150-161. doi: 10.11648/j.jfa.20180606.13

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AMA Style

Nyor Terzungwe, Jonathan Agnes Jummai, Mustapha Lateef Olumide. PITA 2011 and Voluntary Tax Compliance: Towards Achieving Sustainable Revenue Generation in Kaduna State Nigeria. J Finance Account. 2019;6(6):150-161. doi: 10.11648/j.jfa.20180606.13

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@article{10.11648/j.jfa.20180606.13,
  author = {Nyor Terzungwe and Jonathan Agnes Jummai and Mustapha Lateef Olumide},
  title = {PITA 2011 and Voluntary Tax Compliance: Towards Achieving Sustainable Revenue Generation in Kaduna State Nigeria},
  journal = {Journal of Finance and Accounting},
  volume = {6},
  number = {6},
  pages = {150-161},
  doi = {10.11648/j.jfa.20180606.13},
  url = {https://doi.org/10.11648/j.jfa.20180606.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20180606.13},
  abstract = {Sustainable governance entails using the compulsory contribution paid to government by her citizens to support law and order, provide security and social amenities for the benefit of present and future generations. Nigeria's Personal Income Tax Act (PITA) 2011 was amended to provide for sustainable tax policies and administration that would secure voluntary tax compliance and guarantee sustainable revenue generation. The amendment introduced a more equitable tax system by providing realistic tax rates, and recommending an efficient and effective tax administrative system, and simpler tax laws. This study examines the determinants of voluntary tax compliance in Kaduna state Nigeria taking self-assessment, income tax rates, and penalties as provided by PITA 2011, with a view to ascertain whether the Act has significantly affected voluntary tax compliance in the State. The population of study is 4925 registered self-employed individuals who are subjected to Direct Assessment system in Kaduna State, Nigeria. A sample 370 respondents was arrived at using the Yaro Yamani formula. Descriptive statistics and multiple regression technique were used to analyze the data. The study reveals that the amended provisions of PITA 2011 on Self-assessment, Income tax rates and Penalty are capable of enhancing voluntary tax compliance but poor knowledge of the tax laws, unstable economy and administrative bottlenecks have affected the potency of the Act. The study therefore recommends among others that the Kaduna state Government employ measures to boost compliance, such as educating tax payers by summarizing the provisions of PITA 2011 in some widely spoken languages and communicating same.},
 year = {2019}
}

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TY  - JOUR
T1  - PITA 2011 and Voluntary Tax Compliance: Towards Achieving Sustainable Revenue Generation in Kaduna State Nigeria
AU  - Nyor Terzungwe
AU  - Jonathan Agnes Jummai
AU  - Mustapha Lateef Olumide
Y1  - 2019/01/02
PY  - 2019
N1  - https://doi.org/10.11648/j.jfa.20180606.13
DO  - 10.11648/j.jfa.20180606.13
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 150
EP  - 161
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20180606.13
AB  - Sustainable governance entails using the compulsory contribution paid to government by her citizens to support law and order, provide security and social amenities for the benefit of present and future generations. Nigeria's Personal Income Tax Act (PITA) 2011 was amended to provide for sustainable tax policies and administration that would secure voluntary tax compliance and guarantee sustainable revenue generation. The amendment introduced a more equitable tax system by providing realistic tax rates, and recommending an efficient and effective tax administrative system, and simpler tax laws. This study examines the determinants of voluntary tax compliance in Kaduna state Nigeria taking self-assessment, income tax rates, and penalties as provided by PITA 2011, with a view to ascertain whether the Act has significantly affected voluntary tax compliance in the State. The population of study is 4925 registered self-employed individuals who are subjected to Direct Assessment system in Kaduna State, Nigeria. A sample 370 respondents was arrived at using the Yaro Yamani formula. Descriptive statistics and multiple regression technique were used to analyze the data. The study reveals that the amended provisions of PITA 2011 on Self-assessment, Income tax rates and Penalty are capable of enhancing voluntary tax compliance but poor knowledge of the tax laws, unstable economy and administrative bottlenecks have affected the potency of the Act. The study therefore recommends among others that the Kaduna state Government employ measures to boost compliance, such as educating tax payers by summarizing the provisions of PITA 2011 in some widely spoken languages and communicating same.
VL  - 6
IS  - 6
ER  -

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Author Information

Nyor Terzungwe

Department of Accounting and Management, Nigerian Defence Academy, Kaduna, Nigeria
Jonathan Agnes Jummai

Department of Accounting and Management, Nigerian Defence Academy, Kaduna, Nigeria
Mustapha Lateef Olumide

Department of Accounting and Management, Nigerian Defence Academy, Kaduna, Nigeria

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APA Style

Nyor Terzungwe, Jonathan Agnes Jummai, Mustapha Lateef Olumide. (2019). PITA 2011 and Voluntary Tax Compliance: Towards Achieving Sustainable Revenue Generation in Kaduna State Nigeria. Journal of Finance and Accounting, 6(6), 150-161. https://doi.org/10.11648/j.jfa.20180606.13

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ACS Style

Nyor Terzungwe; Jonathan Agnes Jummai; Mustapha Lateef Olumide. PITA 2011 and Voluntary Tax Compliance: Towards Achieving Sustainable Revenue Generation in Kaduna State Nigeria. J. Finance Account. 2019, 6(6), 150-161. doi: 10.11648/j.jfa.20180606.13

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AMA Style

Nyor Terzungwe, Jonathan Agnes Jummai, Mustapha Lateef Olumide. PITA 2011 and Voluntary Tax Compliance: Towards Achieving Sustainable Revenue Generation in Kaduna State Nigeria. J Finance Account. 2019;6(6):150-161. doi: 10.11648/j.jfa.20180606.13

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@article{10.11648/j.jfa.20180606.13,
  author = {Nyor Terzungwe and Jonathan Agnes Jummai and Mustapha Lateef Olumide},
  title = {PITA 2011 and Voluntary Tax Compliance: Towards Achieving Sustainable Revenue Generation in Kaduna State Nigeria},
  journal = {Journal of Finance and Accounting},
  volume = {6},
  number = {6},
  pages = {150-161},
  doi = {10.11648/j.jfa.20180606.13},
  url = {https://doi.org/10.11648/j.jfa.20180606.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20180606.13},
  abstract = {Sustainable governance entails using the compulsory contribution paid to government by her citizens to support law and order, provide security and social amenities for the benefit of present and future generations. Nigeria's Personal Income Tax Act (PITA) 2011 was amended to provide for sustainable tax policies and administration that would secure voluntary tax compliance and guarantee sustainable revenue generation. The amendment introduced a more equitable tax system by providing realistic tax rates, and recommending an efficient and effective tax administrative system, and simpler tax laws. This study examines the determinants of voluntary tax compliance in Kaduna state Nigeria taking self-assessment, income tax rates, and penalties as provided by PITA 2011, with a view to ascertain whether the Act has significantly affected voluntary tax compliance in the State. The population of study is 4925 registered self-employed individuals who are subjected to Direct Assessment system in Kaduna State, Nigeria. A sample 370 respondents was arrived at using the Yaro Yamani formula. Descriptive statistics and multiple regression technique were used to analyze the data. The study reveals that the amended provisions of PITA 2011 on Self-assessment, Income tax rates and Penalty are capable of enhancing voluntary tax compliance but poor knowledge of the tax laws, unstable economy and administrative bottlenecks have affected the potency of the Act. The study therefore recommends among others that the Kaduna state Government employ measures to boost compliance, such as educating tax payers by summarizing the provisions of PITA 2011 in some widely spoken languages and communicating same.},
 year = {2019}
}

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TY  - JOUR
T1  - PITA 2011 and Voluntary Tax Compliance: Towards Achieving Sustainable Revenue Generation in Kaduna State Nigeria
AU  - Nyor Terzungwe
AU  - Jonathan Agnes Jummai
AU  - Mustapha Lateef Olumide
Y1  - 2019/01/02
PY  - 2019
N1  - https://doi.org/10.11648/j.jfa.20180606.13
DO  - 10.11648/j.jfa.20180606.13
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 150
EP  - 161
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20180606.13
AB  - Sustainable governance entails using the compulsory contribution paid to government by her citizens to support law and order, provide security and social amenities for the benefit of present and future generations. Nigeria's Personal Income Tax Act (PITA) 2011 was amended to provide for sustainable tax policies and administration that would secure voluntary tax compliance and guarantee sustainable revenue generation. The amendment introduced a more equitable tax system by providing realistic tax rates, and recommending an efficient and effective tax administrative system, and simpler tax laws. This study examines the determinants of voluntary tax compliance in Kaduna state Nigeria taking self-assessment, income tax rates, and penalties as provided by PITA 2011, with a view to ascertain whether the Act has significantly affected voluntary tax compliance in the State. The population of study is 4925 registered self-employed individuals who are subjected to Direct Assessment system in Kaduna State, Nigeria. A sample 370 respondents was arrived at using the Yaro Yamani formula. Descriptive statistics and multiple regression technique were used to analyze the data. The study reveals that the amended provisions of PITA 2011 on Self-assessment, Income tax rates and Penalty are capable of enhancing voluntary tax compliance but poor knowledge of the tax laws, unstable economy and administrative bottlenecks have affected the potency of the Act. The study therefore recommends among others that the Kaduna state Government employ measures to boost compliance, such as educating tax payers by summarizing the provisions of PITA 2011 in some widely spoken languages and communicating same.
VL  - 6
IS  - 6
ER  -

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