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The Impact of Tax Administration on Tax Compliance Levels in Fako Division of the Southwest Region of Cameroon Alain Vilard Ndi Isoh, Forbe Hodu Ngangnchi, Ndifongong Ferdinand Nsanyui & Sheku Ahmed Fofanah

The Impact of Tax Administration on Tax Compliance Levels in Fako Division of the Southwest Region of Cameroon

Author (s)

Alain Vilard Ndi Isoh, Forbe Hodu Ngangnchi, Ndifongong Ferdinand Nsanyui & Sheku Ahmed Fofanah

Abstract

Tax noncompliance is one of the biggest challenges faced by tax administrators when collecting tax revenues. Despite a series of punitive and coercive measures put in place by most governments including Cameroon, the phenomenon persists with billions of dollars lost every fiscal year. It is on this premise that this study examines the impact of tax education, tax policies and tax audit on the level of tax compliance in Fako Division of the Southwest Region of Cameroon. The research adopted a conclusive case study design supported by the philosophical underpinnings of positivism epistemology and objectivism ontology. Multistage sampling technique was used to source data from a sample of 307 participants using semi-structured questionnaires measured using the five-point Likert scales. Exploratory and confirmatory factor analyses were conducted to reduce the dimension of the data. Structural Equation Modeling (SEM) was used to test hypotheses. Results from the study revealed that there is significant statistical evidence to suggest that the existing tax policies in Fako Division has positive impact on the level of tax compliance with [µ = 0.00 < 0.05; β = 51%; α = 0.05]. Also, the study revealed that tax education has a negative statistical significant effect on tax compliance with [µ = 0.00 < 0.05; β = -18.5%; α = 0.05]. This implies that the more taxpayers are knowledgeable about the tax system, the more they are likely to fraud and default tax payments. It should be noted that the latent construct tax audit was rejected in the data cleaning process. This research, therefore, recommends that the government should improve on the tax policies and make it friendly and acceptable to a majority of taxpayers and that tax administrators should enforce civic education on the importance to respect tax laws by justifying the significance of taxes revenue as a source of funding for community development.

 

Keywords: Noncompliance, Tax policies, Tax audits, Tax education, Tax administration.

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Title: The Impact of Tax Administration on Tax Compliance Levels in Fako Division of the Southwest Region of Cameroon
Author: Alain Vilard Ndi Isoh, Forbe Hodu Ngangnchi, Ndifongong Ferdinand Nsanyui & Sheku Ahmed Fofanah
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.3929286
Media: Online
Volume: 4
Issue: 7
Acceptance Date: 28/06/2020
Date of Publication: 03/07/2020
PDF URL: https://ijsab.com/wp-content/uploads/570.pdf
Free download: Available
Page: 76-90
First Page: 76
Last Page: 90
Paper Type: Research Paper
Current Status: Published

Cite This Article:

Alain Vilard Ndi Isoh, Forbe Hodu Ngangnchi, Ndifongong Ferdinand Nsanyui, & Sheku Ahmed Fofanah (2020). The Impact of Tax Administration on Tax Compliance Levels in Fako Division of the South West Region of Cameroon. International Journal of Science and Business, 4(7), 76-90. doi: https://doi.org/10.5281/zenodo.3929286

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About Author (s)

Alain Vilard Ndi Isoh, Ph.D., (Corresponding Author), Department of Business Management and Finance, ICT University; Director of Studies, Cardiff Metropolitan University Wales UK.

 Forbe Hodu Ngangnchi, Ph.D., Department of Management and Entrepreneurship, The University of Bamenda, Bamenda-Cameroon.

 Ndifongong Ferdinand Nsanyui, Department of Finance and Accounting, HIMS Buea Cameroon.

 Sheku Ahmed Fofanah, Ph.D., Deputy Director and Research Programs Leader; London School of Commerce, UK.

 

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DOI: https://doi.org/10.5281/zenodo.3929286