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De e ence and Tax Mo ale: The mode a ing e ec o
co up ion in Nige ia
By:
Mpimnee Lucky, Ba idoo F iday and Micah Leyi a C.
Depa men o Accoun ing, Facul y o Managemen Sciences,
Uni e si y o Po ha cou , Choba, Ri e sS a e, Nige ia.
Phone: 234 9054048686; 234 8033542244; 2348034441215
Email; mpimne[email p o ec ed]om; idayba [email protected]; leyi a.micah@unipo .edu.ng
Abs ac
This s udy in es iga es he in luence o de e en on ax mo ale; he mode a ing e ec o
co up ion in Nige ia. The s udy adop ed a quan i a i e c oss-sec ional design, popula ion was
h ee hund ed and eigh y- ou (384) indi idual ax paye s ac oss a ious egions in Nige ia.
Da a was collec ed h ough s uc u ed ques ionnai es adminis e ed o pa icipan s using
Pa ial Leas Squa es S uc u al Equa ion Modeling (PLS-SEM). Th ee hypo heses we e
es ed. The esul s indica e ha bo h de e ence measu es; penal ies and ax audi s ha e
signi ican and posi i e e ec s on ax mo ale. Howe e , co up ion did no signi ican ly
mode a e he ela ionship be ween de e ence and ax mo ale. This s udy ecommends
Nige ia Re enue Se ice(NRS o he Se ice) and o he ele an ax au ho i ies should
s eng hen he legal amewo k o imposing and en o cing ax penal ies. Tax au ho i ies in
Nige ia should in ensi y audi e o s and imp o e audi co e age, especially among high- isk
and sel -employed axpaye ca ego ies.
Keywo ds
De e ence, Tax mo ale, Penal ies, Co up ion.
How o ci e: Lucky, M., F iday, B., & Leyi a C., M. (2025). De e ence and Tax Mo ale: The
mode a ing e ec o co up ion in Nige ia. GPH-In e na ional Jou nal o Social Science and
Humani ies Resea ch, 8(9), 01-11. h ps://doi.o g/10.5281/zenodo.17278917
Manusc ip ID: #02111
10.5281/zenodo.17278917
Vol. 08 Issue 09 Sep - 2025
E-3050-9637
P-2795-3222
Page 01 o 11
Lucky, M., F iday, B., & Leyi a C., M. (2025). De e ence and Tax Mo ale: The mode a ing e ec o co up ion in
Nige ia. GPH-In e na ional Jou nal o Social Science and Humani ies Resea ch, 8(9), 01-11.
h ps://doi.o g/10.5281/zenodo.17278917
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Social Science & Humani ies Resea ch
INTRODUCTION:
Tax mo ale has been in oduced o accoun o he le el o ax e asion. Taxes a e impo an
sou ce o e enue howe e , e enue collec ion is one o he mos impo an unc ions
pe o med by any na ion and enables i o sus ain i sel (Smi h, 2003; Fjelds ad & Moo e,
2009; Anyaduba, E agbhe & Kennedy, 2012). I is he esponsibili y o go e nmen a
di e en le els ( Na ional, S a e and Local) le el o collec axes. I means ha go e nmen
should no only announce a ax sys em and wai in hope ha axpaye s, h ough hei sense o
du y, will olun a ily emi wha is owed o he iscus (F ey, 2003:285; Smi h, 2003:1;
Slem od, 2007:25; C oome & Oli ie , 2010). E e y coun y has limi ed economic esou ces
a ailable o mee socie al needs.
Tax mo ale mus be pu in he gene al con ex o he ela ionship be ween ci izen and he
s a e. A some ins ances, he e a e exploi a i e go e nmen s uling hei people in an
au ho i a ian o e en dic a o ial way. Mos go e nmen s in his o y ha e been o his ype, and
e en oday i applies o a la ge numbe o na ions. Unde hese condi ions, he indi iduals
ha e o be o ced o pay axes because hey know only oo well ha mos o he e enue is
no used o expendi u es om which hey will bene i . In his ci cums ances he de e ence
model is ully applicable.
Many schola s ha e app ecia ed ha mo ale is impo an o explaining ax paying beha iou
in a sa is ac o y way ( To gle 2001). I has been well es ablished ha axpaying beha iou
canno be explained in a sa is ac o y way wi hou aking ax mo ale in o accoun .
Howe e , Nobody likes o pay axes. Go e nmen mus ind a s a egy o people o be made
o pay hei dues. Tha is, people ha e o be o ced o pay axes by punishing hem i hey y
o e ade such paymen . This solu ion has p edomina ed h oughou his o y. Bu he e a e
excep ions - in ancien G eece, esou ces we e shi ed om he ich o he poo wi hou
coe cion. Mos o he public imp o emen s we e buil wi h he li u gy, a olun a y
con ibu ion om he ich o he ci y s a e ( Adams,1993). This solu ion is also accep ed as a
ma e o cou se in all coun ies and o all kinds o axes which Nige ia is no an excep ion.
Thus, I is assumed ha people only pay axes because he go e nmen and i s ax
adminis a ion ollow a de e ence policy. This does no mean ha one would obse e many
pe sons being punished wi h ines o imp isonmen . The idea is a he ha he h ea o
punishmen will su ice o people o ind i mo e a ional o pay hei dues.
The pa h-b eaking con ibu ion by Allingham and Sandmo (1972) on axpaye beha io is
based on he expec ed u ili y maximiza ion calculus. I ep esen s a special applica ion o he
economic heo y o c ime championed by Becke (1968). The undamen al insigh is ha he
ex en o ax e asion depends nega i ely on he p obabili y o being caugh and he size o he
punishmen i caugh . This model has been ex ended in a ious di ec ions. ( And eoni, E a d
and Feins ein 1998; Slem od and Yi zhaki 2002).
S a emen o he P oblem
While Nige ia depend la gely on oil e enue o pe o m he esponsibili ies as a go e nmen ,
mode n economies depend on ax e enue. I is expec ed ha e e y axable ci izen pay ax
and, in u n, ecei e public goods and se ices. Bu he le el o ax compliance is low in
Nige ia wi h he a endan e ec o low e enue. This has made he coun y con inually
ocused on de ici inancing du ing budge . Tax mo ale is an in e nalized esponsibili y o
na u al mo i a ion o pay ax bills (B ai hwai e & Ahmed, 2005). Tax e enue could no be
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De e ence and Tax Mo ale: The mode a ing e ec o co up ion in Nige ia
Volume 8 Issue No 09 (2025) Access: h ps://gphjou nal.o g/index.php/ssh
op imised whe e ci izens e ade axes. I is di icul , i no impossible, o accoun o he le el
o ax e asion in Nige ia. Se e al egula o y policies ha e been adop ed o enhance ax
compliance in Nige ia he a ailiable eco ds show insigni ican imp o emen s The eason o
mos ax e asion acco ding o Allingham and Sandmo's (1972) is ha ha axpaye s a e
a ional, isk-a e se indi iduals who a e always ying o inc ease hei ne income. In iew
o he low de e ence applied in mos coun ies, axpaye s should e ade much mo e han hey
ac ually do. I is widely acknowledged ha he decision o e ade axes may no only be
d i en by ac o s such as ax a es, penal ies, audi p obabili ies and en o cemen bu o he
ex insic ac o s.
Despi e exis ing ax p o isions aimed a closing loopholes h ough which axable indi iduals
o o ganiza ions could minimize hei ax liabili ies, axpaye s con inue o employ a ious
a oidance schemes, bu i has also led o he neglec o o he po en ial sou ces o ax
e enue. This aises ques ions abou he e icacy o ax o icials in hei oles. This si ua ion
unde sco es b oade issues wi hin Nige ia's ax adminis a ion sys em, encompassing bo h i s
design and he a i udes o some axpaye s owa ds axa ion. S a e go e nmen s hea ily ely on
Pay-As-You-Ea n (PAYE) o e enue gene a ion due o i s p edic abili y.
This pe cep ion o highe penal ies and g ea e di icul y a oiding axes a e bo h associa ed
wi h highe ax mo ale. In Nige ia, Tax mo ale may also be highe when people belie e ha
paymen axes is wi h less equency o co up ion among ax o icials o he g ea e he us
hey ha e in ax o icials.
This s udy is de e mined o ind ou he in luence o de e ence on ax mo ale and he
media ing ole o co up ion in Nige ia
Theo e ical and Empi ical Re iew
The ins i u ional heo y
The ins i u ional heo y is p emised a ound he idea ha o ganisa ions seek legi imacy,
expec a ions, ules, and ou ines (Kuijpe s & Eijdenbe g,2021).Dimaggio and Powell (1983)
in hei semina wo k highligh ed how o ganisa ions y o seek legi imacy by con o ming o
h ee o ms o ins i u ional p essu es ha collec i ely shape o ganisa ional beha iou s,
s uc u es and p ocesses. These ins i u ional p essu es include, no ma i e, coe ci e and
mime ic p essu es.
Dimaggio and Powell (1983) o e s a heo e ical amewo k o ―de e ence and ax mo ale
and used ins i u ional heo y o showed how o ganisa ions and indi iduals a ec axpaye s.
This heo y posi s ha o ganisa ions do no exis in isola ion, a he hey a e deeply
embedded wi hin socie al s uc u es which in luences hei beha iou and p ac ices.
The iscal exchange heo y
The iscal exchange heo y is acclaimed o ha e e ol ed om he economic de e ence and
he social psychology models (McKe cha and E ans, 2009), and is p emised upon he
exis ence o a social, ela ional o psychological con ac be ween he go e nmen and he
axpaye s.
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Lucky, M., F iday, B., & Leyi a C., M. (2025). De e ence and Tax Mo ale: The mode a ing e ec o co up ion in
Nige ia. GPH-In e na ional Jou nal o Social Science and Humani ies Resea ch, 8(9), 01-11.
h ps://doi.o g/10.5281/zenodo.17278917
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Social Science & Humani ies Resea ch
Psychological con ac heo y
Psychological con ac heo y ocuses on he unw i en implici expec a ions and obliga ions
ha exis be ween employees and employe s beyond o mal employmen con ac s and
ag eemen s (Hoglund, 2012).
De e ence
De e en as punishmen o ax aud is an age long ool co ec ing ax o ende and ensu ing
p omp esponse o paymen o ax le ies, as i we e om incep ion ax aud is
as onomically on he inc ease a he han declining. The seminal e e ence o analyzing ax
e asion decision a he indi idual le el is Allingham and Sandmo (1972) (A&S), who
de elop a s aigh o wa d model o he decision o pay axes based on Becke ’s (1968)
analysis o c iminal beha io . In hei model, he le el o decla ed income subjec o axa ion
is decided by weigh ing he expec ed cos s and bene i s o unde epo ing: on he one hand,
he indi idual can be audi ed and, i caugh , penalized; on he o he hand, he migh no be
audi ed, and hus escape axa ion.
Assuming a gi en pe cei ed p obabili y o being audi ed, he indi idual decides how much o
e ade so as o maximize his expec ed u ili y. In his model i is easy o show ha he
―op imal‖ le el o ax e asion declines wi h he p obabili y o being audi ed, and wi h he
size o he penal y. Abo e and beyond he quan i a i e p edic ions o he model, he A&S
amewo k is he s anda d heo e ical e e ence in he economic analysis o ax compliance,
and i is use ul o conside some o i s basic cons uc s in o de o gauge i s empi ical
ele ance in a ious con ex s; in pa icula , he oppo uni ies o e asion, he pe cei ed
p obabili y o de ec ion and he se e i y o punishmen . Wha a e he oppo uni ies o
e asion? F om he pe spec i e o he A&S model, wha is he ealis ic empi ical coun e pa
o an indi idual’s axable income ha he o she may ha e incen i es and he abili y o unde -
epo ? In many cases his is no hei o al income. In mos coun ies, wages a e epo ed o
he ax au ho i y by he employe (o en e en wi hholding ax obliga ions), which makes
e asion on such income e y di icul . The same happens wi h income ob ained om in e es
ea ned on inancial asse s which a e epo ed o he ax au ho i ies by banks. In hese cases,
he oppo uni y o unde epo ing income and e ading axes is e y limi ed. This sugges s
ha he de e ence model should be in e p e ed as applying o ha pa o income (o hose
ca ego ies o ea nings) which he ax paye can in ac e ade wi hou ce ain y o de ec ion.
E asion is de e mined o a la ge ex en by he ―oppo uni y‖ o income mis epo ing
(Slem od, 2001). A second issue ela es o he pe cei ed p obabili y o being de ec ed o
audi ed. How is his pe cep ion de e mined? The o iginal A&S pape al eady conside s he
possibili y ha his p obabili y is de e mined endogenously assuming ha i declines wi h he
amoun o income epo ed. I is shown ha he esul s de i ed om he simple model do no
change
Finally, he de e ence model no only depends on he p obabili y o de ec ion bu also on
he se e i y o he penal y in case an illici beha iou is e elled. In his ega d, public
in e en ion aimed a imp o ing en o cemen could inc ease penal ies o inc ease awa eness
o exis ing ines in case o de ec ion.
Tax Penal ies
The de e ence measu es o c ime ha e been widely discussed especially he ex en o how
hey could be used o educe c ime in he socie y (Adenuga & Abdul azak,2016). The oles o
de e ence measu es ha e been no ed o inc ease he mone a y cos o public and p i a e
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De e ence and Tax Mo ale: The mode a ing e ec o co up ion in Nige ia
Volume 8 Issue No 09 (2025) Access: h ps://gphjou nal.o g/index.php/ssh
expendi u e ( Ro imi, Foluso,. Abdul, Saliu, Muyiwa,2019). They admi ha amongs ax
en o cemen ools a e such as ax audi s, placemen o ax penal ies, ine, de ainmen o
asse s, subsequen disposal o ax de aul p ope y and compulso y use o ax clea ance
ce i ica e o majo ansi ions.
An o ence is he iola ion o any law, egula ion and legisla ion, and any pe son o pe sons
who is a pa y o doing any ac which amoun s o o esul s in o o m pa o a se ious o
ac s which oge he amoun o o will esul in some hing which is unlaw ul is guil y o an
o ence.
Analysis o he accu acy penal y he e o e mus include analysis o he co esponding
penal ies
applicable o hose pa ies. This Pa se s ou he s anda ds o conduc and he penal ies
imposed on axpaye s, ax p ac i ione s, and go e nmen o icials—all wi hin he con ex o
he axpaye ’s du y o assess he own ax liabili y.
Tax Audi
Tax audi is one o he mos e ec i e policies o p e en ax e asion beha ou (Slem od,
2000) and ways o ensu e ou igh compliance. Acco dingly, ax audi is ele an o ax
adminis a ion bo h de eloping and de eloping coun ies o he wo ld so as o a oid ax aud
(e asion and a oidance) by ax paye s such as o ganiza ion and indi iduals (Olaoye &
Ekundayo,2018).
Modugu nd Anyaduba, (2014)de ined audi as a p ocess whe eby he ax au ho i y examines
ce ain issues conce ning o he p o i s o a company and i s o he ela ed e u ns as i may
deem necessa y and expedien in acco dance wi h he ele an p o isions o he Ac .
Howe e , he p ima y pu pose o ax audi would be o asce ain he ex en o which ax
paye s may ha e comply wi h he ele an s a u o y p o isions o he ax Ac in espec o
hei audi ed inancial s a emen s and o he ax ela ed e u ns. I is usually a ou ine exe cise,
which i s ou come could lead o a eassessmen o e e al o special in es iga ion especially
i ax e asion is suspec ed. The e o e, helps o sus ain he con idence and in eg i y eposed in
he sel -assessmen scheme cu en ly in o ce in Nige ia
Co up ion and Tax Mo ale
The e ec o co up ion in he public sec o on ax mo ale could simply be explained. Paye s
pay axes olun a ily and hope ha he ax unds hey pay can be used by he go e nmen o
ax au ho i ies o ca y ou a ious de elopmen p og ams o imp o e axpaye s' quali y o
li e. When he go e nmen o ax au ho i y co up s ax unds, his ac ion disappoin s
axpaye s and dec eases hei ax mo ale. Some p e ious esea ches show how he condi ions
o he public sec o ( o example, co up ion, he legal and ax sys em) a ec he ax mo ale
o he ci izens (Bani-Mus a a e al., 2022; Be inelli, 2020; Nyamapheni & Robinson, 2022;
Rosid e al., 2018; Sebele-Mpo u, 2020; Williams & K asniqi, 2017).
Co up ion in public au ho i ies can se e ely ha m ax mo ale. F om a heo e ical poin o
iew, co up ion can discou age people o comply because o pe cei ed un ai ness in he
exchange be ween axpaye s and he s a e (Feld and F ey, 2007) and induce e ical
inequi ies om addi ional mone a y bu dening (Fo in e al., 2007). Rose-Acke man and
Pali ka (2016) indica e ha b ibe y dis o s he p ice mechanism and e odes go e nmen
legi imacy. To gle (2003) shows ha axpaye s a e mo e likely o comply i hey eel ai ly
ea ed by he go e nmen .
Page No. 05
Lucky, M., F iday, B., & Leyi a C., M. (2025). De e ence and Tax Mo ale: The mode a ing e ec o co up ion in
Nige ia. GPH-In e na ional Jou nal o Social Science and Humani ies Resea ch, 8(9), 01-11.
h ps://doi.o g/10.5281/zenodo.17278917
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Social Science & Humani ies Resea ch
The ollowing hypo heses a e o mula ed as ollows:
Ho1: Penal ies does no signi ican ly d i e ax mo ale in Nige ia.
Ho2: Tax audi has no signi ican e ec on ax mo ale in Nige ia.
Ho3: Co up ion has no mode a ing in luence on he ela ionship be ween
de e ence and ax mo ale in Nige ia.
Me hodology
The s udy adop ed a quan i a i e c oss sec ional esea ch design. The s udy's popula ion
unde conside a ion was h ee hund ed and eigh y- ou (384) indi idual ax paye s ac oss
a ious egions in Nige ia. The accessible popula ion was limi ed o all sel -assessed
indi idual axpaye s, ax consul an s and ax p o essionals, s a o bo h ede al and s a e
inland e enue se ices in Nige ia. The echnique used o collec ing he da a was a sel -
de eloped ques ionnai e, con aining i ems o di e se o ma s: mul iple choice measu ed on
he 5-poin Like scale, and open-ended ques ions.
Responden s we e chosen h ough he quo a sampling me hod wi h ega ds o speci ic le el
o educa ion, ha is, hose ha ing a leas seconda y quali ica ion. Mo eo e , sampling ame
was di ided in o non-o e lapping s a a o example e hnici y, age, gende and employmen .
In line wi h he objec i e o he s udy, he p ima y da a collec ed was analysed using he
s a is ical package o social sciences (SPSS Ve sion 25) and he Sma PLS V
The SPSS was used o analysing he desc ip i e s a is ics and he p elimina y analysis o he
s udy, while Sma PLS was employed o he in e en ial s a is ics and es ing he esea ch
hypo heses.
In ca ying ou he eliabili y o he esea ch ins umen , he C onbach’s Alpha was used.
C onbach's alpha (α) is an es ima e o eliabili y, speci ically he in e nal consis ency, o a
es o scale. C onbach's alpha seeks o measu e how closely es i ems a e ela ed o one
ano he and hus measu ing he same cons uc .
Model Speci ica ion
Following he e iew o ela ed li e a u e by a ious schola s and au ho s on he subjec
ma e , De e ence and Tax mo ale in Nige ia, he esea che deem i necessa y o exp ess he
ela ionship ha exis be ween hese a iables in a ma hema ical model.
TMO= (PEN,TAD/ COR)
Exp essing equa ion in he econome ic o m o he model o he s udy a e gi en below:
TMOi = β0 + β1PENi + β2T
ADi β3CORi + µi
Whe e:
TMO = Tax mo ale
;
PEN = Penal ies
TAD = Tax audi
COR = Co up ion
αo, βo, ϕo = eg ession cons an
µ = s ochas ic e o e m.
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De e ence and Tax Mo ale: The mode a ing e ec o co up ion in Nige ia
Volume 8 Issue No 09 (2025) Access: h ps://gphjou nal.o g/index.php/ssh
Resul and Discussions
Tes o Hypo heses
Hypo hesis One
Ho1: Penal ies does no signi ican ly d i e ax mo ale in Nige ia.
Ho2: Tax audi has no signi ican e ec on ax mo ale in Nige ia.
Hypo hesis 1 (To al e ec )
The analysis o he ela ionship be ween penal ies (P) and ax mo ale (TM) e eals a
s a is ically signi ican posi i e e ec . The pa h coe icien (0.511) sugges s ha inc eased
penal ies a e mode a ely o s ongly associa ed wi h highe le els o ax mo ale among
axpaye s in Nige ia. This means ha when indi iduals pe cei e penal ies o ax e asion o
be mo e se e e, ce ain, o swi , hei in insic mo i a ion o comply wi h ax obliga ions
ends o inc ease. The boo s apped sample mean (0.525) closely mi o s he o iginal
coe icien , indica ing he esul is s able and consis en ac oss esampling i e a ions.
Fu he mo e, he -s a is ic alue o 4.511 a exceeds he 1.96 h eshold o signi icance a
he 5% le el, and he p- alue o 0.000 con i ms ha he ela ionship is no due o chance.
Based on hese indings, he null hypo hesis (Ho₁), which posi s ha penal ies do no
signi ican ly d i e ax mo ale in Nige ia, is ejec ed. The e o e, penal ies a e indeed a
signi ican p edic o o ax mo ale in he Nige ian con ex .
This inding aligns wi h he assump ions o de e ence heo y, which sugges s ha indi iduals
a e mo e likely o comply wi h laws, including ax laws, when hey pe cei e a high likelihood
Page No. 07
Lucky, M., F iday, B., & Leyi a C., M. (2025). De e ence and Tax Mo ale: The mode a ing e ec o co up ion in
Nige ia. GPH-In e na ional Jou nal o Social Science and Humani ies Resea ch, 8(9), 01-11.
h ps://doi.o g/10.5281/zenodo.17278917
© 2025 GLOBAL PUBLICATION HOUSE | In e na ional Jou nal o Social Science & Humani ies Resea ch
o de ec ion and punishmen . In Nige ia’s con ex , whe e ax e asion emains a conce n, he
en o cemen o ax- ela ed penal ies can se e no only as a de e en bu also as a mechanism
ha ein o ces he mo al obliga ion o pay axes. I emphasizes ha beyond me e ea o
punishmen , a s uc u ed and consis en en o cemen amewo k can enhance ci izens’ belie
in he ai ness and necessi y o con ibu ing o he s a e h ough axes.
Hypo hesis 2 ( o al e ec )
The s a is ical esul o he ela ionship be ween ax audi (TA) and ax mo ale (TM)
demons a es a signi ican and posi i e associa ion. The pa h coe icien o 0.562 indica es a
s ong posi i e e ec , sugges ing ha inc eased audi ac i i y co esponds wi h highe le els
o ax mo ale among Nige ian axpaye s. In o he wo ds, he mo e likely indi iduals a e o be
audi ed, he g ea e hei in e nal mo i a ion o comply wi h ax laws. This is u he
suppo ed by he boo s apped sample mean (0.578), which closely aligns wi h he o iginal
es ima e, ein o cing he consis ency o he ela ionship.
The s anda d de ia ion o he pa h coe icien is ela i ely low (0.092), which means he e is
minimal a iabili y in he boo s apped es ima es. Mo e impo an ly, he -s a is ic alue o
6.076 is subs an ially highe han he c i ical h eshold o 1.96 equi ed o signi icance a he
5% le el, and he p- alue o 0.000 con i ms ha his e ec is highly s a is ically signi ican .
Based on hese esul s, Hypo hesis Two (Ho₂) is ejec ed, es ablishing ha ax audi s do
indeed ha e a signi ican e ec on ax mo ale in Nige ia.
This inding aligns wi h he b oade amewo k o de e ence-based ax compliance models,
which a gue ha he likelihood o being audi ed se es no only as a de e en o ax e asion
bu also ein o ces a sense o accoun abili y and compliance among axpaye s. In he
Nige ian con ex , whe e en o cemen mechanisms may o en be pe cei ed as weak o
selec i ely applied, a isible and ai audi ing p ocess may con ibu e signi ican ly o
imp o ing he psychological and mo al mo i a ion o pay axes. Thus, his esul unde sco es
he impo ance o s eng hening audi sys ems as a s a egic ool o enhance olun a y ax
compliance and public us in he ax sys em.
Ho3 Co up ion has no mode a ing in luence on he ela ionship be ween
de e ence and ax mo ale in Nige ia.
The analysis examining co up ion as a mode a ing a iable in he ela ionship be ween bo h
de e ence and ax mo ale, e eals s a is ically insigni ican e ec s. Speci ically, he
in e ac ion e m o co up ion × de e ence (C × De e ence → TM) yields a pa h coe icien
o 0.003, wi h a e y low -s a is ic (0.018) and a p- alue o 0.985, indica ing no signi ican
mode a ing e ec .
This esul sugges s ha , con a y o expec a ions, he pe cei ed le el o co up ion in Nige ia
does no meaning ully al e how penal ies, audi s, a ec axpaye s’ in insic willingness o
comply wi h ax obliga ions. One possible in e p e a ion is ha co up ion in he public sec o
may be so no malized o disconnec ed om pe sonal ax beha io ha i ails o dampen o
ampli y he e ec s o de e ence. Al e na i ely, i may e lec ci izens’ esigna ion o
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De e ence and Tax Mo ale: The mode a ing e ec o co up ion in Nige ia
Volume 8 Issue No 09 (2025) Access: h ps://gphjou nal.o g/index.php/ssh
sys emic co up ion, hus weakening i s po en ial o in e e e wi h hei ax- ela ed a i udes,
whe he mo i a ed by ea o en o cemen o eligious eachings.
While his ou come may appea coun e in ui i e, i highligh s he complexi y o co up ion’s
in luence and sugges s ha i s mode a ing ole may depend on mo e nuanced ac o s such as
pe cei ed ai ness, us in ins i u ions, o indi idual e hical h esholds. Fu u e esea ch may
bene i om explo ing pe cei ed co up ion in ensi y o sec o -speci ic co up ion o be e
unde s and i s in e ac ion wi h ax mo ale de e minan s.
Conclusion
Based on he inding, we concluded ha bo h penal ies and ax audi s signi ican ly enhance
ax mo ale, unde sco ing he impo ance o en o cemen in de e ing non-compliance
The s udy concludes ha ex e nal en o cemen (de e ence) play complemen a y oles in
p omo ing ax compliance in Nige ia.
Finally, he s udy concludes ha he e is no signi ican mode a ing e ec o co up ion on he
ela ionship be ween de e ence and ax mo ale and mus be add essed h ough b oade
ins i u ional e o ms, anspa enc y, and us -building measu es in public go e nance.
Recommenda ions
The ollowing ecommenda ions a e made om he s udy. They include:
Gi en ha penal ies signi ican ly in luence ax mo ale, he go e nmen h ough he Nige ia
Re enue Se ice(NRS o he Se ice) and o he ele an ax au ho i ies should s eng hen he
legal amewo k o imposing and en o cing ax penal ies. This ecommenda ion is cap u ed
in he Nige ia Tax Ac , 2025. In he Ac , he e is a signi ican inc ease in non-compliance
penal ies and he in oduc ion o new penal ies. Some o he upda es include inc ease in he
penal y o ailu e o ile e u ns o NGN100,000 in he i s mon h, and NGN50,000 o
e e y mon h he ailu e con inues, in oduc ion o new penal ies such as penal y o
NGN5million o awa ding con ac s o indi iduals o en i ies ha a e no egis e ed o ax,
penal ies o ailu e o g an access o deploymen o echnology, inducing a ax o ice e c
Tax au ho i ies in Nige ia should in ensi y audi e o s and imp o e audi co e age,
especially among high- isk and sel -employed axpaye ca ego ies.
The go e nmen should p io i ize an i-co up ion e o ms in ax adminis a ion by p omo ing
anspa ency, digi izing ax p ocesses, ensu ing accoun abili y o ax o ice s, and p osecu ing
co up o icials.
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