A Survey on Tax Evasion Using Randomized Response Technique

Akinola Oladiran Adepetun, Samuel Odunayo Adeosun

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.

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References

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