The Impact of Self-Assessment Regulations on Tax Revenue Generation in Nigeria

Babatunde Adeyeye Gbadegesin; Umaru Fonga  Moses; Adeyemi Mobolaji  Adeyeye; Amonia  Korubo

Gbadegesin Babatunde Adeyeye Department of Accounting, Faculty of Management Sciences, University of Lagos, Nigeria
Moses Umaru Fonga Department of Accounting, Faculty of Management Sciences, University of Lagos, Nigeria
Adeyemi Mobolaji Adeyeye Department of Accounting, Faculty of Management Sciences, University of Lagos, Nigeria
Amonia Korubo Department of Accounting, Faculty of Management Sciences, University of Lagos, Nigeria

Keywords: Self-assessment, Voluntary tax compliance, Revenue generation, Government Accountability, Tax evasion, Tax avoidance

Abstract

This paper investigates how self-assessment regulations impact on generating tax revenue in Nigeria. The study determines the effectiveness of self-assessment regulations in Nigeria, the impact of adoption of self-assessment in reducing revenue loss in Nigeria; and examines the impact of self-assessment regulations on the growth of revenue in Nigeria. Survey design, using a structured questionnaire was adopted. The population of the study is 500 staff from Lagos Island regional Offices of the Federal Inland Revenue Service. 240 respondents comprising management staff was selected randomly from the population as the sample size for the study while 223 copies duly completed were retrieved and used. Spearman’s Rho Correlation Coefficient, Regression Analysis including Analysis of Variance and Chi-square (X²) statistics were used to test the formulated hypotheses. Results of the study indicate significant positive impact of Self-Assessment regulations on generating revenue in Nigeria, that lack of transparency in accounting for tax revenue encourages tax evasion and avoidance in Nigeria. Recommendations proffered include: increasing public enlightenment campaign on self-assessment regulations; improve on transparent use of tax revenues to militate against sharp practices, evasion of taxes; and constant review of the tax laws and policies.