TAX EDUCATION AND TAX COMPLIANCE: A STUDY OF THE INFORMAL SECTOR OPERATORS IN ABIA AND RIVERS STATE
Keywords:
Informal sector, tax education, tax complianceAbstract
Effective tax education has the capacity to increase compliance level of informal sector operators. As a result, the study empirically assesses tax education and tax compliance in the informal sector with a mindset of finding how the variables relate. Adopting the survey, the study randomly distributed 120 questionnaires to respondents operating in theinformal sector. The Pearson correlation was used in analysing the 114 returned questionnaires retrieved. The study results show significant relationship between electronic taxpayer education, stakeholder sensitization programme, print media taxpayer education and registration of new taxpayers, timely returns filing, prompt payment of tax liabilities at a significant level of 0.000 for all. The results also showed the existence of positive correlation between the dimensions and the measures of the study. That is, when there is improvement in the dimensions of the study, it will cause increase of the measures. Therefore, the study concluded that there is a significant relationship between tax education and tax compliance in the informal sector.The study then recommended that relevant tax authorities should activate the use of electronic tax education to educate and update taxpayers, especially those in the informal sector, on the tax laws, tax procedures and new amendments; Identify, organize and facilitate appropriate structured meetings in the form of forums, conferences, townhall meeting, visit at business places, seminars, and workshops to sensitize taxpayers on tax compliance; and tax education via magazines, newspaper, manuals, fliers, manuals, printing of banner, leaflet/handbills, manual or books should be vigorously pursued by relevant tax authorities to ensure tax compliance