Impact of tax fairness and tax knowledge on tax compliance behavior of listed manufacturing companies in Nigeria

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Tax compliance is a major contemporary debate surrounding corporate taxation in the business world. The tax avoidance issue, which remains an ethical problem for companies, has been a general concern in developed and developing countries alike. The main problem of this study is a non-tax compliance behavior of the corporate organization taxpayers in Nigeria. This study examined the influence of tax fairness on the tax compliance behavior of listed manufacturing companies in Nigeria. The paper adopted a survey research method, and four hundred (400) copies of the questionnaire were administered to the selected manufacturing companies of both consumer and industrial goods sectors. The Laffer Curve Theory underpinned this study and Correlation Analysis, Analysis of Variance (ANOVA), and Multiple Regression Analysis were also employed. The study found that there is a significant level of tax compliance among the listed manufacturing companies in Nigeria. The study also shows that the corporate taxpayer’s perception of fairness of –2.765 (0.006) has a significant impact on corporate taxpayers’ willingness to pay taxes and tax knowledge of 4.601 (0.000) significantly influenced tax compliance. Based on tax knowledge, the study recommends that tax authorities must improve the knowledge of taxpayers and tax collection agents through programs, initiatives, and training on tax awareness.

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    • Table 1. Reliability statistics
    • Table 2. Model summary
    • Table 3. Coefficients of independent variables
    • Table A1. Tax fairness
    • Table A2. Tax knowledge
    • Funding acquisition
      Olufemi Oladipo
    • Methodology
      Olufemi Oladipo, Damilola Eluyela
    • Supervision
      Olufemi Oladipo
    • Validation
      Olufemi Oladipo, Tony Nwanji, Adekunle Adegboyegun
    • Writing – original draft
      Olufemi Oladipo
    • Conceptualization
      Tony Nwanji, Bitrus Godo, Adekunle Adegboyegun
    • Project administration
      Tony Nwanji
    • Writing – review & editing
      Tony Nwanji
    • Software
      Damilola Eluyela
    • Visualization
      Damilola Eluyela, Bitrus Godo
    • Investigation
      Damilola Eluyela, Adekunle Adegboyegun
    • Data curation
      Bitrus Godo, Adekunle Adegboyegun
    • Resources
      Bitrus Godo