IDEAS home Printed from https://ideas.repec.org/a/ris/ilojep/0017.html
   My bibliography  Save this article

Tax Administration In The Informal Sector: Kwara State Internal Revenue Service Perspective

Author

Listed:

Abstract

Taxation in the informal sector has been very challenging for most tax authorities in Nigeria. The sector is largely characterised by low voluntary tax compliance. This study examines the challenges facing tax administration in the informal sector in Kwara State and the impact of measures taken by Kwara State Internal Revenue Service (KW-IRS) particularly, the Community Impact Programmes (CIPs)—direct and indirect intervention programmes to inspire voluntary tax compliance in the informal sector of the State. Survey research design was used for the study. A total of 56 staff from a population of 83 staff deployed to the Informal Sector Directorate of KW-IRS as at the period of the survey were sampled and descriptive statistical methods were used to analyse the results. The study finds that CIPs are impactful, but would not suffice in sustaining high level of tax compliance. Government therefore should provide basic social amenities to citizens in order to inspire voluntary tax compliance, and enforce penalties for those who evade tax payment.

Suggested Citation

  • Aminu Yaru, Mohammed & Aminu Yaru, Mohammed & Awodun, Muritala, 2019. "Tax Administration In The Informal Sector: Kwara State Internal Revenue Service Perspective," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 6(6), pages 1-12, June.
    • Handle: RePEc:ris:ilojep:0017
    as

    Download full text from publisher

    File URL: http://www.ijep.org/issues/volume6issue62019/Yaru%202019.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tahseen Ajaz & Eatzaz Ahmad, 2010. "The Effect of Corruption and Governance on Tax Revenues," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 405-417.
    2. James Alm & Michael McKee, 1998. "Extending the lessons of laboratory experiments on tax compliance to managerial and decision economics," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 19(4-5), pages 259-275.
    3. Alm, James & Bahl, Roy & Murray, Matthew N, 1990. "Tax Structure and Tax Compliance," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 603-613, November.
    4. Anna Alon & Amy Hageman, 2013. "The Impact of Corruption on Firm Tax Compliance in Transition Economies: Whom Do You Trust?," Journal of Business Ethics, Springer, vol. 116(3), pages 479-494, September.
    5. Kate Meagher, 2018. "Taxing Times: Taxation, Divided Societies and the Informal Economy in Northern Nigeria," Journal of Development Studies, Taylor & Francis Journals, vol. 54(1), pages 1-17, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammed Aminu Yaru, 2022. "Budget transparency and internal revenue mobilisation at sub-national government level: evidence from Nigeria," Public Sector Economics, Institute of Public Finance, vol. 46(4), pages 505-531.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wilsa Road Betterment Sitepu & Salwani Arbak, 2023. "Factors Affecting Tax Compliance by Small and Medium Enterprises in Indonesia," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 60-71, December.
    2. James, Simon & Edwards, Alison, 2010. "An annotated bibliography of tax compliance and tax compliance costs," MPRA Paper 26106, University Library of Munich, Germany.
    3. Mattos, Enlinson & Rocha, Fabiana & Toporcov, Patricia, 2013. "Programas de incentivos fiscais são eficazes? Evidência a partir da avaliação do impacto do programa nota fiscal paulista sobre a arrecadação de ICMS," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 67(1), April.
    4. Dossè Mawussi Djahini‐Afawoubo, 2024. "Understanding tax payment behaviour in the West African Economic and Monetary Union: The role of perceived detection capacity and honesty," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(2), pages 795-823, March.
    5. repec:fgv:epgrbe:v:67:n:1:a:5 is not listed on IDEAS
    6. Lahiri, Bidisha & Ali, Haider, 2022. "Inspections, informal payments and tax payments by firms," Finance Research Letters, Elsevier, vol. 46(PA).
    7. Murphy, James J. & Stranlund, John K., 2007. "A laboratory investigation of compliance behavior under tradable emissions rights: Implications for targeted enforcement," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 196-212, March.
    8. Laszlo Goerke, 2003. "Tax Evasion and Tax Progressivity," Public Finance Review, , vol. 31(2), pages 189-203, March.
    9. Tom Moerenhout & Joonseok Yang, 2022. "Tax Evasion Attitudes of Small Firms in Low‐ and Middle‐income Countries: Evidence from Nigeria," Development Policy Review, Overseas Development Institute, vol. 40(6), November.
    10. Samir Ul-Hassan & Biswambhara Mishra, 2018. "Does an Economic and Political Affairs Matter in Determining the Tax Revenue of Jammu and Kashmir State (India): An Approach through VECM Model," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 22(2), pages 471-501, Spring.
    11. Stranlund, John K. & Murphy, James J. & Spraggon, John M., 2011. "An experimental analysis of compliance in dynamic emissions markets," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 414-429.
    12. Emmanuel Ekow Asmah & Francis Kwaw Andoh & Edem Titriku, 2020. "Trade misinvoicing effects on tax revenue in sub‐Saharan Africa: The role of tax holidays and regulatory quality," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(4), pages 649-672, December.
    13. Bayer, Ralph-C & Sutter, Matthias, 2009. "The excess burden of tax evasion--An experimental detection-concealment contest," European Economic Review, Elsevier, vol. 53(5), pages 527-543, July.
    14. Md. Harun Ur Rashid & Noman Uddin & Md. Shariful Haque & Syed Zabid Hossain, 2022. "Good governance and tax evasion: mediating effect of socioeconomic conditions," Asia-Pacific Journal of Regional Science, Springer, vol. 6(2), pages 759-776, June.
    15. John K. Stranlund & James J. Murphy & John M. Spraggon, 2013. "Imperfect enforcement of emissions trading and industry welfare: a laboratory investigation," Chapters, in: John A. List & Michael K. Price (ed.), Handbook on Experimental Economics and the Environment, chapter 9, pages 265-288, Edward Elgar Publishing.
    16. Laura Sour, 2004. "An Economic Model of Tax Compliance with Individual Morality and Group Conformity," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(1), pages 43-61, January-J.
    17. Norman Gemmell & Marisa Ratto, 2018. "The Effects of Penalty Information on Tax Compliance: Evidence from a New Zealand Field Experiment," National Tax Journal, National Tax Association;National Tax Journal, vol. 71(3), pages 547-588, September.
    18. James Alm, 2012. "Measuring, explaining, and controlling tax evasion: lessons from theory, experiments, and field studies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(1), pages 54-77, February.
    19. Theodora Bermpei & Antonios Nikolaos Kalyvas & Leone Leonida, 2021. "Local Public Corruption and Bank Lending Activity in the United States," Journal of Business Ethics, Springer, vol. 171(1), pages 73-98, June.
    20. Choo, C.Y. Lawrence & Fonseca, Miguel A. & Myles, Gareth D., 2016. "Do students behave like real taxpayers in the lab? Evidence from a real effort tax compliance experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 124(C), pages 102-114.
    21. Maarten Lindeboom & Bas van der Klaauw & Sandra Vriend, 2014. "Audit Rates and Compliance: A Field Experiment in Long-term Care," Tinbergen Institute Discussion Papers 14-038/V, Tinbergen Institute.

    More about this item

    Keywords

    Tax Administration; Informal Sector; Kwara State;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:ilojep:0017. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniel Akanbi (email available below). General contact details of provider: https://edirc.repec.org/data/deilong.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.