EFFECT OF MORAL CONDUCT ON TAX MANAGEMENT: COHERENT PERCEPTIVE

Inyang Ochi Inyang, Rose Emmanuel Eyo, John Oboh Ogenyi

Abstract


The exploration was undertaken on the effect of moral conduct on tax management: Coherent perceptive. The objectives were to: determine the effect of tax equity on tax management in Nigeria; investigate how tax payers’ integrity influence tax management in Nigeria; ascertain the nexus of fairness and tax management in Nigeria; and examine the impact of honesty on tax management in Nigeria. The design adopted in this study was an ex post facto design. This is because the events had already taken place before the investigation is carried out. The ex-post facto design uses descriptive survey to scientifically collect data from a population and explores the relationship between the dependent and independent variables. The data for the study were analyzed with multiple linear regression technique to determine the nexus between the moral conduct of tax payers and tax management. The result revealed that tax equity, taxpayers’ integrity, tax fairness and tax honesty affect tax management in Nigeria. Therefore, the study ended by making the following suggestions; that great care should be taken in developing a code of best practice for tax managers to ensure that all the moral factors are effectively addressed within this code for efficient and effective tax structure. The public authorities and tax managers should encourage taxpayers’ knowledge and integrity through the provision of quality infrastructural facilities and other incentives to enhance its revenue generation. The motivation of tax payers through the provision of public goods and services will help to encourage them to remit their tax liabilities and hence improve on their moral conducts for efficient tax management. Individual tax laws need to adhere to moral internal and external standards, such as equal treatment and principles imminent to a given tax, derived from its legal character. The moral quality or fairness of tax law is important because it determines the reach of the obligation of the constituents to pay taxes and the level of voluntary compliance. The tax system should be fair and objective. High level of literacy and managerial capability should be enhanced through adequate sensitization and awareness on the part of the taxpayers, while the managerial competence of the tax collectors should be appropriately enhanced towards the development of efficient tax system.

JEL: L20; L23

Article visualizations:

Hit counter


Keywords


coherent, conduct, management, moral, perceptive, tax

Full Text:

PDF

References


Allingham, M.G. & Sandmo, A. (1972). Income Tax Evasion: A Theoretical Analysis. Journal of Public Economics, 1: 323-338.

Alm, J. & Torgler, B. (2012). Deterrence and Beyond: Toward a Kinder, Gentler IRS, in Why People Pay Taxes. Slemrod, J. (ed.). Ann Arbor: The University of Michigan Press, 311-329.

Alm, J. & Torgler, B. (2012). Do Ethics Matter? Tax Compliance and Morality. 101 (4) Journal of Business Ethics: 635-651.

Andreoni J, Erard B, Feinstein J (1998). Tax Compliance, Journal of Economic Literature, 36: 818-891.

Anyaduba, J. O. & Oboh, T. (2019). Determinants of Tax Compliance Behaviour under the Self- Assessment Scheme in Nigeria. Accounting and Finance Research Vol. 8, No. 2; 13-31.

Armitstead, L. (2013). Big Four accountants blast tax scheme claims. The Telegraph. Retrieved from http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/10018.

Asuquo, A. I., Akpan, A. U., & Tapang, A. T. (2012). Nigerian pension reforms and management: New strategies for rewarding past intellectuals towards sustainable development in the third world. USA, Global Journal of Management and Business. 12 (13): 11-18.

Asuquo, A. I., Tapang, A. T., Effiong, G. T., Linus, M. U., Uklala, A. P., & Duke, S. B. (2021). Remuneration reforms and welfare of employees in public school: Experience from Nigeria. Research in World Economy, 12(2, Special issue), 113-122.

Asuquo, A. I., Akpan, A. U., & Effiong, C. (2014). Accounting for influence of execution of financial conventions on revenue utilization in Local Government Areas Nigeria’s experience of level of voluntary compliance. European Journal of Accounting, Auditing and Finance Research, 2(5): 1-18.

Asuquo, A. I. (2013a). Revenue base and social assets creation in Local Government Areas in Cross River State-Nigeria: A virile tool for overcoming exclusion and strengthening inclusion for sustainable development in third world. IOSR Journal of Social Sciences and Humanity, 7(3): 59-66.

Asuquo, A. I. (2012c). Impact analysis of interest rate on net assets of multinational business in Nigeria. Research Journal of Finance and Accounting, 3(7), 64-70.

Asuquo, A. I. (2013b). The efficiency of stock markets in the pricing of financial assets: An analysis of the Nigerian stock market (2001- 2010). International Journal of Management. 30 (4) 396-403.

Asuquo, A. I. & Arzizeh, T. T. (2012). An empirical analysis of foreign exchange rate risk exposure and the performance of Nigerian companies: 2002-2011. International Journal of Current Research and Review, 4(23) 1-8.

Asuquo, A. I., Tapang, A. T., Uwah, U. E., Dan, N. O., & Uklala, A. P. (2020). Accounting implications of micro-fiscal measures and quality of real gross national goods and services: Empirical evidence from Nigeria. Research in World

Asuquo, A. I. & Akpan, A. U. (2014). Professional proficiency for effective accounting education and practice for coping with the changing world: Nigeria’s perception. International Journal of Management Sciences. Research Academy of Social Sciences.4 (6) 241-252.

Asuquo, A. I. & Akpan, A. U. (2012a). Professional ethics as instruments for effective and efficient financial management in the Nigerian public sectors: A scientific approach. International Journal of Advance Innovations Thoughts and Ideas, 1(6), 5-10.

Akpan, A. U., & Asuquo, A. I., (2012b). Tax concession and investment decisions of small scale businesses in Calabar Free Trade Zone – Nigeria. Journal of Finance and Investment Analysis, 1(4):15-25.

Asuquo, A. I., Dan, N. O., & Effiong, G. T. (2020a). Impact of information technology on accounting line of works. International Journal of Recent Technology and Engineering, 9(2): 1572-1577.

Asuquo, A. I., Dan, N. O., & Effiong, G. T. (July-August, 2020b). The analytic legal accounting practices and control of swindles in warranty cash stores. Test Engineering and Management, 83, 4823-4831.

Asuquo, A. I., Dan, N. O., & Effiong, G. T. (2020c). Effect of eco-friendly costs on net revenue of cement producing firms. International Journal of Scientific and Technology Research, 9(9), 235-240.

Asuquo, A. I. (2012a). Empirical analysis of the impact of information technology on forensic accounting practice in Cross River State-Nigeria. International Journal of Scientific and Technology Research 1(7), 25-33.

Asuquo, A. I. (2012b). Environmental friendly policies and their financial on corporate performance of selected oil and gas companies in Niger Delta Region of Nigeria. American International Journal of Research: Centre for Promoting Ideas, 2(1), 168-173.

Asuquo, A. I. & Udoayang, J. O. (2020). Effect of Accounting Practices on trade and Information technology in Calabar Metropolis. International Journal of Recent Technology and Engineering, 8(6): 1572-1577.

Asuquo, A. I. (2011a). Impact of creative accounting and earnings management on modern financial reporting. The Nigerian Academic Forum, 20(1): 1-6.

Asuquo, A. I. (2011b). The application of standard magnitude variance in optimal capital structuring/working capital management in business organizations. Multi-Disciplinary Journal of Academic Excellence. 5(1), 109-120.

Asuquo, A. I. (2020). Applicability of standard magnitude variance in the determination financial progress of business organizations. International Journal of Scientific and Technology Research, 9(3), 6351-6358.

Asuquo, A. I., & Effiong, S. A., (2011). Empirical analysis of Nigerian fiscal policies and revenue generation processes. Multidisciplinary Journal of Research Development, 17(2):1-11.

Asuquo, A. I., & Effiong, S. A., (2010). Tax management as an alternative tool for Economic recovery and development in Cross River State. International Journal of Accounting, 1(1): 38–44.

Asuquo, A. I. & Ejabu, F. E. (2018). Effects of thin capitalization and International law on performance of multinational companies in Nigeria. Journal of Accounting and Financial Management, 4(2): 47-58.

Barford, V., & Holt, G. (2012). Google, Amazon, Starbucks: The rise of ‘tax shaming’. Retrieved from http://www.bbc.co.uk/news/magazine-20560359.

Becker, G.S. (1968). Crime and Punishment – An Economic Approach. The Journal of Political Economy 76, 169-217.

Brederode, R. V. (2020). Introduction: Why Ethics Matter in Taxation. Intertax, 764-783.

Cowell, F. (2004).Carrots and Sticks in Enforcement, in Crisis in Tax Administration. Aaron, H.J. and [34] Slemrod, J. (eds.). Washington, D.C.: Brookings Institution Press, 230-258.

Cruz, C. A., Shafer, W. E., & Strawser, J. R. (2000). A multidimensional analysis of tax practitioners’ ethical judgments. Journal of Business Ethics, 24(3), 223–244.

Devos, K. (2014). Tax evasion behavior and demographic factors: An exploratory study in Australia. Revenue Law Journal, 18(1), 1-23.

Fagbemi, T. O., Uadiale, M. O.& Abdurafiu, N. O. (2010). The Ethics of Tax Evasion: Perceptual Evidence from Nigeria. European Journal of Social Sciences, 17(3), 360-371.

Fischer C. M, Wartick M, & Mark, M. (1992). Detection Probability and taxpayer Compliance: A Review of literature, J. Acc. Lit. 11: 1-46.

Frecknall-Hughes, J, Moizer, P, Doyle, E & Summers, B. (2017). An Examination of Ethical Influences on the Work of Tax Practitioners. Journal of Business Ethics, 146:729–745.

Frecknall-Hughes, J., & Moizer, P. (2015). Assessing the quality of services provided by tax practitioners. Journal of Tax Research, 13(1), 51–75.

Jackson, B., Milliron, V. & Toy, D. (1986). An analysis of the exchange relationship between tax practitioners and the government, Tax Notes:333-341.

Kaplow, L. (2006). Taxation. Cambridge, MA: National Bureau of Economic Research.

Kommer, V. V. (2009). Integrity-ethics for tax administration. IBFD.

Leviner, S. (2009). A new era of tax enforcement: From ‘big stick’ to responsive regulation. University of Michigan Journal of Law Reform, 42(2), 381-429.

Longenecker, J. G., McKinney, J. A., & Moore, C. A. (1989a). The generation gap in business ethics. Business Horizons, 32(5), 9–14.

Marshall, R.L., Armstrong, R.W. & Smith, M. (1998). The ethical environment of tax practitioners: Western Australian evidence. Journal of Business Ethics, 17:1265-1279.

Nienaber, S. G. (2010). Factors that could influence the ethical behaviour of tax professionals. Meditari Accountancy Research, 18(1) 33-46.

Sandmo, A. (2005). The Theory of Tax Evasion: A Retrospective View. National Tax Journal, 58(4): 643-663.

Stainer, A., Stainer, L., & Segal, A. (1997). The ethics of tax planning: Business ethics. European Review, 6(4), 213–219.

Torgler, B. (2002). Direct Democracy Matters: Tax Morale and Political Participation. Paper read at 95th Annual Conference on Taxation, November 14-16, Orlando, Florida. Proceedings. Sztrecska Publishing, 50-59.

Udoayang, J. O., Asuquo, A. I., Effiong, A. S. & Kankpang, A. K. (2020). Levy baits and exterior conventional ventures in gasoline industry in the technological stage of development. International Journal of Recent Technology and Engineering, 9(1), 590-594.

Udoayang, J. O., Asuquo, A. I. & Akpan, A. U. (June 2020). Tasks based costing technique and labour place effectiveness in processing firms. International Journal of Scientific and Technology Research, 9(6): 285-291.

Uwah, U. E. & Asuquo, A. I. (2016). Capital budgeting processes and wealth maximization objectives: Implications for firms in Nigeria. Research Journal of Finance and Accounting, 7(10):73-85.

Vasiljeviene, N. (2003). Verslo etika ir elgesio kodeksai: Filosofinės ištakos, metodologinia pagrindai ir šiuolaikinės praktikos bruožai. [Business Ethics and the Code of Ethics: Philosophical Sources, Methodological Basics and Features of Current Practice]. 2nd edition.

Visockaitė, A. & Birškytė, L. (2013). Ethics in tax administration. Societal Studies, 5(3), p. 735–750.

Wenzel, M. (2017). An analysis of norms processes in tax compliance. Journal of Economic Psychology. 25(2),213-238.




DOI: http://dx.doi.org/10.46827/ejmms.v6i3.1086

Refbacks

  • There are currently no refbacks.


Copyright (c) 2021 Inyang Ochi Inyang, Rose Emmanuel Eyo, John Oboh Ogenyi

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.

Copyright © 2017-2023. European Journal of Management and Marketing Studies (ISSN 2501 - 9988) is a registered trademark of Open Access Publishing Group. All rights reserved.

This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and  Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.