ETHICAL ISSUES OF TAX EVASION IN NIGERIA
Nwadighoha, C. E.
Department of Accounting, College of Management Sciences,
Michael Okpara
University of Agriculture, Umudike, Abia State Nigeria.
ABSTRACT: This paper examines the views and ethical justifications for tax evasion in Nigeria. The survey method was employed for the study which involves the administration of questionnaires to sixty respondents made up of the academia, civil servants, businessmen and students. The questionnaire contains scale depicting the basic views on tax evasion. Most of the statements begin with the phrase “tax evasion is not unethical if …” which allows the respondents to either agree or disagree with the statement. The responses to each question were tallied and ranked to determine the circumstances whereby tax evasion might be considered most or least ethical. The pooled t-statistic was used to test whether there were significant differences among the respondents on the view on tax evasion. It was discovered that the respondents especially the academia agree that tax evasion was ethical. Similarly, the academia was eighteen structured statements in a 5-point likert less opposed to tax evasion than the other respondents. Moreover, the female respondents (academic and other respondents) expressed more support for tax evasion than their male counter parts. Among the most important justifications or reasons for tax evasion were: religious, political and ethnic discrimination, perception of injustice in government allocation of projects. Unfairness in the tax system was the least justification for tax evasion. It is concluded that there is serious ignorance of tax laws on the part of the respondents as no reason is sufficient to justify tax evasion which is a criminal offence. Therefore, it is recommended that government and the tax authorities should engage in massive awareness campaigns and tax education to enlighten the public on the need to pay taxes instead of evading it and also to correct the wrong perception of tax obligations of citizen in Nigeria.
