TAX STRATEGIES AND COMPLIANCE IN SOUTH-WEST NIGERIA
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Date
2025
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Business and Management Inaba
Abstract
Tax compliance remains a significant challenge in developing economies, where inadequate
tax strategies and weak enforcement mechanisms hinder effective revenue generation and
economic development. Given the issues, this study aims to examine the impact of tax strategies
on tax compliance in South-West Nigeria. Specifically, the study seeks to: assess the effect of
tax planning strategies on tax compliance, evaluate the influence of compliance and risk
management strategies on tax compliance, investigate the impact of tax avoidance strategies
on tax compliance, and determine the moderating effect of regulatory enforcement on the
relationship between tax strategies and tax compliance in South-West Nigeria. A cross
sectional survey design was adopted, targeting a population of 159,000 taxpayers and 8,818
SIRS staff with a sample size of 399 and 383 respondents. Data was analyzed using Partial
Least Squares-Structural Equation Modeling (PLS-SEM) to establish relationships among the
study variables. The findings reveal that tax planning and compliance and risk management
strategies positively influence tax compliance, while tax avoidance strategies negatively impact
compliance. The study concludes that effective tax planning and robust compliance measures
can enhance adherence to tax regulations, with regulatory enforcement playing a crucial role
in strengthening compliance efforts. It recommends that tax authorities in South-West Nigeria
implement stronger regulatory frameworks, improve taxpayer education, and leverage digital
tools to monitor