A SURVEY OF CULTURE AND TAX COMPLIANCE IN SUB-SAHARA AFRICA: NIGERIAN PERSPECTIVE
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Professor Taiwo Asaolu, Lateef Ayodele Agbetunde
Tax Compliance, Culture, Hofstede Cultural Dimension, Tax Compliance Factors, Sub-Sahara Africa, Nigeria
This study examined culture and tax compliance of individual taxpayers in Nigeria, a Sub-Sahara African country. Data were collected in a survey of Nigerians through a self-administered questionnaire on taxpayers from two purposively selected states from each of its three major cultural groups; Hausa, Igbo, and Yoruba. Hofstedes’ cultural dimensions were used to analyze the respondents’ characteristics, while process definition of tax compliance was adopted in drawing proxies to measure tax compliance. A total of 1,200 respondents were randomly selected for the study. Data were electronically processed and analyzed with SPSS 23 software using parametric and non-parametric statistics. Results revealed that, generally culture exerts significant influence on the tax compliance of individual taxpayers in Nigeria and that each of the Hofstede’s cultural dimensions is found to show a strong influence on tax compliance. Specifically, each of “power difference”, “masculinity” and “uncertainty avoidance” dimensions are found to have a positive influence on tax compliance but “individualism” dimension showed negative influence on tax compliance. The study also established a significant relationship between some tax compliant factors and each of the cultural aspects testifying that some policy implication findings were established in the result. From these findings, the study recommended policy formulation strategy considered appropriate for each tax jurisdiction based on its dominant culture, which if adopted would tremendously assist in ensuring effective taxation in Nigeria as well as other tax jurisdictions with similar cultural features.