Pyrex Journal of Taxation and Accounting Management

August 2017 Vol. 1(2), pp. 9-23

Copyright © 2017 Pyrex Journals

Full Length Research Paper

Tax Compliance Strategy and Tax Revenue Yield: Empirical Evidence from Rivers State, Nigeria (2007-2016)

Uchechukwu Godwill Akpu1* and John Ohaka2

1Department of Accounting, College of Management and Social Sciences, Novena University, Nigeria.
22Department of Accounting, Faculty of Management Sciences, Rivers State University, Nigeria.

Corresponding Author E-mail:

Accepted 16th August, 2017


This study empirically evaluates the relationship between tax compliance strategy and tax revenue yield, evidence from Rivers state, Nigeria. The study is motivated by the wake of persistent dwindling of internally generated revenue of various levels of government in Nigeria occasioned by the collapse of crude oil price at the international market and the difficulties in optimizing the non-oil tax revenue yield in the state. This paper adopted a regression/correlational and causal comparative (Ex-post Facto) research design. Ten years’ data of tax revenue yield from Rivers State Board of internal revenue service for the period 2007-2017, and Survey data from 100 respondent stakeholders in the Rivers state tax environment using researcher-designed questionnaire validated by experts and shown to have a reliability coefficient of .850 Data were analysed using regression technique and Pearson product moments correlation with the aid of Statistical package for social sciences (SPSS) version 20. With r value of .705 the study found significant relationship between tax compliance strategy and tax revenue yield. Furthermore, voluntary compliance and enforcement were shown to have significant effects on personal income tax revenue yield and withholding tax revenue yield explaining 66.70% and 89.40% changes in tax revenue yield respectively. The study conclude that increase in tax revenue yield depend on effective tax compliance strategy. The study recommends government provision of infrastructural amenities, transparency and accountability of taxpayers’ money, tax education, strict enforcement of tax laws, and demonstration of high ethical standards and integrity, patriotism and professionalism by tax consultants/practitioners.

Keywords: Tax compliance strategy, Tax Revenue yield, voluntary compliance, enforcement.

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