IMPACT OF TAX LAWS ON REVENUE GENERATION IN NIGERIA: MODERATING ROLE OF TAX JUSTICE USING STRUCTURAL EQUATION MODEL ANALYSIS
Keywords:
Tax Laws, Tax Justice, Revenue Generation, Structural Equation ModelAbstract
This study empirically examined tax laws and revenue generation using tax justice as a moderator. The study anchored on the theory of social interaction and cross-sectional research design was adopted while data was collected from primary and secondary sources. The primary data consisted of structured questionnaires from a sample of 243 respondents (taxpayers) in Bayelsa State, Nigeria. Data collected from the respective respondents were analysed by applying structural equation model. The study shows that there is a positive and significant relationship between tax laws (Personal Income Tax Act, Company Income Tax Act, Capital Gains Tax Act, Value Added Tax Act and Education Tax Act) and revenue generation (tax income) in Baylesa State. The finding also shows that tax justice positively and significantly moderates the association between tax laws (Personal Income Tax Act, Company Income Tax Act, Capital Gains Tax Act, Value Added Tax Act and Education Tax Act) and revenue generation (tax income) in Baylesa State, Nigeria. From the findings of this study, we concluded that tax justice positively and significantly influences revenue generation in Nigeria. We recommended amongst others that the government should accurately interpret existing tax laws to guarantee persistent tax collection among taxpayers, and such revenue generation is the foundation of a good tax system. Hence, for tax laws to be effectively and efficiently implemented, proposing severe rules is recommended as compassion to reshape the attitude of the taxpayers to be more compliant to tax rules and regulations
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