Ethical, Legal Perspectives and Tax Evasion and Avoidance in Nigeria

Olaowo Rasak Olatunde and Eke Robert Ike
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Olaowo Rasak Olatunde: University of Benin, Benin City, Edo State, Nigeria. Email: olatunde.olaowo@uniben.edu
Eke Robert Ike: Wellspring University, Edo State, Nigeria. Email: robert.eke@wellspringuniversity.edu.ng

Journal of Taxation and Economic Development, 2025, vol. 24, issue 1, 19-42

Abstract: The association between ethical beliefs, legal frameworks, tax literacy, tax evasion, and avoidance practices in Nigeria were examined in this research. Out of the 677 participants in the study, 144 respondents were selected using the purposive sampling technique. Using regression analysis, correlation matrix, and descriptive statistics, the study revealed significant negative relationships between the independent variables and tax evasion and avoidance. Specifically, it found that ethical beliefs, a robust legal framework, and tax literacy were crucial factors in reducing tax evasion and avoidance. Ethical beliefs significantly impact tax behaviour, with individuals holding stronger ethical values being less inclined to evade taxes. Similarly, a well-structured legal framework, characterized by clear tax laws and penalties, significantly deters tax evasion. Tax literacy also plays a vital role, as individuals with higher tax awareness have the tendency to meet tax requirements. From the outcomes, it was recommended that ethical tax behaviour, legal framework, and public tax literacy should be promoted to foster a more transparent and accountable tax system.

Keywords: Ethical Belief; Legality; Tax Evasion; Avoidance; Literacy (search for similar items in EconPapers)
Date: 2025
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