A Survey on Tax Evasion Using Randomized Response Technique

Akinola Oladiran Adepetun; Samuel Odunayo Adeosun

Akinola Oladiran Adepetun Department of Statistics, Federal University of Technology, PMB 704, Akure
Samuel Odunayo Adeosun Department of Statistics, Federal University of Technology, PMB 704, Akure

Abstract

Taxation is a tool used by government to raise revenue. It is also used as an instrument of economic and social policy. This paper adopted Randomized Response Technique to estimate proportions of non-compliance of taxpayers in Akure metropolis as well as analysing socio-demographic variables which may affect those proportions. Survey questionnaires were administered on taxpayers in Akure with a view to collecting data from them. The data collected were analysed using z-test. The findings of this study revealed that among the respondents completing the Randomized Response survey instrument, 47.7% admitted tax evasion by trading goods and not reporting it in tax form, 48.7% admitted evasion by excluding some outside income, 49.8% admitted tax evasion by being paid in cash and not reporting it, 43.7% admitted evasion by hiding investment to avoid payment of tax while 43% admitted evasion by cheating on tax whenever the chances arises respectively.

Author Biography

Akinola Oladiran Adepetun, Department of Statistics, Federal University of Technology, PMB 704, Akure

Department of Statistics/Lecturer I

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