Tax service quality and compliance behaviour in Nigeria: Do taxpayer’s financial condition and risk preference play any moderating role?

• Main Authors: Alabede, James O, Zainal Affrin, Zaimah, Md. Idris, Kamil
• Format: Article
• Language: English
• Published: EuroJournals, Inc. 2011
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/3854/1/Ja.pdf; http://repo.uum.edu.my/3854/; http://www.eurojournals.com/EJEFAS_35_09.pdf

The issue of service quality was initially thought to be concept related only to the private sector but with systematic extension of the principles of marketing to public sector, it is now realized by organizations operating within the public sector that customer service and quality are strategic issue that desire attention.Just like other public organizations in Nigeria, the issue of service quality should also be critical to tax offices because they provide numerous services to the Nigerian taxpayers.However, prior statistical evidences are revealing that tax compliance level is dropping in Nigeria especially at individual income tax level. Although a multitude of factors may account for such phenomenon, this study is undertaken primarily to ascertain the influence of perceived tax service quality as well as moderating effect of financial condition and risk preference on taxpayer’s compliance behaviour in Nigeria. The study involved a survey of individual taxpayers’ opinion, perception and behaviour. The outcome of the study indicates that perceived tax service quality is positively, significantly related with tax compliance behaviour. The study also reveals that taxpayer’ financial condition and risk preference jointly moderate the relationship between perceived tax service quality and compliance behaviour.