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European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.11, 2012 Deterrent Tax Measures and Tax Compliance in Nigeria John Obi Anyaduba PhD Emmanuel Eragbhe Modugu Prince Kennedy Department of Accounting, Faculty of Management Sciences, University of Benin, PMB 1154, Benin City, Nigeria * Email of corresponding author: email@example.com ABSTRACT Over the years, many developed economies have made considerable investment in legislative tax reforms, taxpayer education programs, tax enforcement strategies, and increasingly sophisticated systems of tax administration using new technologies. Undoubtedly, there are lessons to be learnt from studying best practices in developed economies. However, compared to their counterparts in developed economies, policy makers and revenue authorities in developing economies face quite different challenges and constraints that require careful consideration in designing appropriate and effective tax systems. This paper examines the effects of deterrent tax measures on tax compliance in Nigeria. Following the introduction, we reviewed the existing tax policies and reforms in Nigeria. This is followed by a discussion of the various compliance strategies prescribed in the literature from where we developed our hypotheses. The method of data analysis used in the study is the ordinary least square (OLS) regression technique. This method was adopted because of its properties of consistency, unbiasedness and efficiency. The OLS regression technique was estimated using computer software (Microfit 4.1). It was observed that the existing deterrent tax measures in Nigeria are inadequate and have not helped to promote tax compliance in the country. It was also discovered that fostering voluntary compliance and enhancing taxpayer's morale will enhance tax compliance. We recommend that the Nigerian revenue authorities should strive to adopt the approach that will encourage voluntary compliance and prescribe appropriate sanctions for defaulters. Key Words: Tax, Tax system, Deterrent, Tax Measures, Tax Returns, Tax Liability 1. INTRODUCTION Tax plays a pivotal role within the concept of generating revenue for the government while enabling it (government) to provide the citizens with such welfare goods and service. According to Margaret and Chris (2009), taxes and tax systems are fundamental components of any attempt to build nations and this is particularly the case in developing nations. Taxes underwrite the capacity of states to carryout their goals; they form one of the central arenas for the conduct of state-society relations and they shape the balance between accentuation and redistribution that gives states their social characters. In summary, taxes build capacity, legitimacy and consent. The key components of any tax system are tax policies and tax administration. No tax is better than its policies. An essential objective of tax policy is to ensure the maximum possible compliance by tax payers of all types with their taxation obligation. Unfortunately in many developing countries, tax policies are usually weak and characterized by extensive abuse, corruption and coercion. The puzzle of the economic theory of tax compliance is why do people pay taxes? Allingham and Saundmo (1972) basing their argument on Becker's (1968) economic theory of crime, sees the extent of deterrence as the product of the probability of being detected and concludes that the size of the fine imposed determines the amount of income evaded. However, in view of the low deterrence applied in most countries, either because of a low intensity of control or small penalties, tax payer's evasion rate appears to be on the increase. The whole essence of governance is to enhance the welfare of an increasing number of people. The 1999 constitution of the Federal Republic of Nigeria, in many of its provisions affirms this position. This presupposes that the largest proportion of the resources with which the welfare of the citizens are advocated, are raised through taxation. Hence the importance of tax cannot be overemphasized. What is worrisome, however, has been the tax gap; the difference between the tax amount tax payers pay voluntary and on time and what they should pay under the law has been a long-standing problem in spite of many efforts to reduce it. When most tax payers fail to comply, the burden of funding the nation's commitment falls heavily on the few compliant taxpayers. Globally a colossal amount of money is lost to non-compliance by taxpayers. This trend makes it increasingly difficult for successive governments to deliver the electoral promises to the electorates. In reaction to this anomaly, governments (both in developed and developing economies) adopt deterrent measures to combat this ugly trend in order to boost their revenue base and enable them fulfill their electoral promises. Deterrent tax policies in this study are viewed as compliance strategies employed by the government to boost tax compliance. These measures are grouped into four broad categories: creating a more effective tax administration, fostering voluntary compliance and enhancing taxpayers' morale and strengthening and enforcing compliance. For decades, tax researchers have investigated why some people pay taxes and others do not. Through experiments, random surveys, and available tax data bases, researchers have identified characteristics of non-compliance and factors that 37 European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.11, 2012 inhibit tax compliance. This study, in contributing to the existing literature, examines the relationship between effective tax administration and tax compliance in Nigeria. Specifically it examines the effect of the various deterrent tax measures of government on tax compliance in Nigeria with a view to finding out whether strengthening and enforcing compliance induces tax compliance. To do this, structured questionnaires were administered to a randomly selected sample of tax payers in the country. The responses were used to test the formulated research hypotheses using the OLS regression model. 2. LITERATURE REVIEW 2.1 TAX POLICIES AND REFORMS IN NIGERIA Nigeria's fiscal policy measures have been largely driven by the need to promote such macroeconomic objectives as promoting rapid growth of the economy, generating employment, maintaining price levels and improving the balance-of- payment conditions of the country. In line with its federal structure, Nigeria operates a three-tier government, with certain fiscal responsibilities and powers delineated to each level. To avoid conflict among the three levels, the 1999 Constitution classified governmental responsibilities and powers into exclusive, concurrent and residual categories or lists. The National Assembly is empowered to issue legislation on the taxation of incomes, profits and capital gains. It is also authorized to legislate on matters classified in the concurrent list, particularly those related to the 'division of public revenue'—tax collection. The State Houses of Assembly, on the other hand, may prescribe the collection of any tax, fee or rate, or the administration of a law to provide for such collection by a local government council (1999 FRN: A1060-63). It is illegal for consultants, other than those recognized by the authorities, to collect taxes on behalf of the state and local governments. Thus, the federal government controls most of the buoyant tax handles, an issue that has been severely criticized over the years. As pointed out by the Study Group on Tax Reform (2003), the federal government accounts for 99 per cent of the tax revenue in Nigeria, but the concentration of fiscal power with the central government conflicts with the tenets of fiscal federalism, where some degree of autonomy is assumed. The major tax laws in existence as of September 2010, and various related amendments include the Personal Income Tax Act of 2004; Company Income Tax Act of 2004; Petroleum Profits Tax Act of 2004; The Petroleum Act of 2004; Value-Added Tax Act of 2004; Education Tax Act of 2004; Capital Gains Act of 2004; Customs and Excise Management Act of 1990; Minerals and Mining Act of 1999; Stamp Duties Act of 1990; Taxes and Levies (Approved List for Collection) Act of 1998; and 1999 Constitution of the Federal Republic of Nigeria. In line with fiscal federalism, court jurisdiction over tax matters reflects the three tiers of government. The federal high courts have jurisdiction over company income tax, petroleum profit tax, custom and excise duties as well as stamp duties and corporate capital gains tax, and education tax. Personal income tax (PIT), capital gains tax and stamp duties payable by individuals are legislated by the federal government, but collected by state authorities. Since the federal government is not a party to these taxes, their adjudication should fall on the state. The fact that any appeal to the VAT tribunal is handled by the Court of Appeal confirms that VAT adjudication is levied by the federal government. Taxes collected by the local government are under the jurisdiction of the magistrate courts. Personal income tax (PIT) This is the oldest tax in the country. In Nigeria, personal income tax for salaried employment is based on a pay as you earn' (PAYE) system. It is applicable under the provisions of the Personal Income Tax Act (PITA) Cap.P.8 LFN,2004. The current deterrent measures for non compliance include a penalties up to N 25,000 for employers who fail to register their employees and to remit such taxes to relevant authorities. The employers are also liable for the payment of all tax arrears. Employers failing to keep proper records would also face a penalty of N 5,000. Adekanola (1997) opines this small fine tends to encourage tax evasion since the penalty for being caught is lower than the cost for non-compliance and that in spite of the fact that the self-employed outnumber paid workers and that they earn as much as four times that of the formal sector employees, the bulk of PIT is paid by employees whose salaries are deducted at source. CITN (2002) identified some problems confronting PIT administration in Nigeria. They say that "tax administration is particularly hard here because literacy level is low and record keeping is not yet a popular culture. There are not enough tax officials to cover the field. Most of the officials are little trained, ill equipped, badly remunerated and corrupt… Governments in Nigeria are perceived as a corrupt and selfish lot, to whom money should not ever be voluntarily given. Taxes paid are expected to end up in private pockets, not in public utilities". The foregoing not only makes compliance difficult, but also enforcement problematic. Company income tax (CIT) Company income tax (CIT) in Nigeria is currently codified as the Company Income Tax Act (CITA) Cap. 21. LFN, 2004. The Federal Inland Revenue Services (FIRS), is empowered to administer the tax. The current tax rate is 30%. There is, however, a 20 per cent tax concession for certain companies: i.e., those engaged in agricultural production or mining of solid minerals with a maximum turnover of N 0.5 million and those in manufacturing or the export promotion sector with a 38 European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.11, 2012 turnover not exceeding N1 million.( Presidential Committee on National Tax Policy, 2008). The rates on capital allowances have been reduced continually to reflect the economic reality of the country. In the spirit of global competitiveness, the 30 per cent tax rate for corporate bodies in Nigeria is still one of the highest in the world. The allocation of all categories of corporate tax to the federal government negates the spirit of decentralization, particularly in a federal system such as Nigeria's. The taxation of companies operating at a loss is not only grossly inequitable but also destructive to business enterprises. The penalty for non-compliance within the provision of the Act is too low and counter-productive to the goals of the Act. Education tax Education tax was introduced in 1993 (Education Tax Act, Cap. E 4 LFN, 2004). To prevent the educational system from total collapse due to the financial crisis that had affected the sector for years, this federally collected tax imposed a 2 per cent charge on the assessable profits of Nigerian companies. It was geared towards providing the education sector with the opportunity for survival and renewal. The tax is applied to companies' net profits, and is deducted from net profits before tax, thus it is not subject to company income tax. The introduction of this tax has added to the list of multiple taxes that eats away the profit margins of companies. It is a double tax on company profits, and is argued to be a major disincentive to foreign investment in Nigeria. At the technical level, the term assessable profits' causes confusion and is considered to be misleading. This, with regard to education tax, could lead to a situation where companies under-report profit margins. Petroleum profit tax (PPT) The petroleum profit tax (PPT) is applicable to upstream operations in the oil sector. It is particularly related to rents, royalties, margins and profit-sharing elements associated with oil mining, prospecting and exploration leases. It is the most important tax in Nigeria in terms of its share of total revenue, contributing 95 and 70 per cent of foreign exchange earning and government revenue, respectively. The PPT covers oil and gas taxation but is complemented with two different contractual relationships not formally covered by tax legislation. The first constitutes joint ventures between international oil companies and the Nigerian National Petroleum Company structured under a joint operating agreement (JOA) as set out in the memorandum of understanding (MOU). The Nigerian statutory rate is 85 per cent (effective rate, however, is 70-80 per cent because of the MOU). The PPTA stipulates that oil-producing companies must render accounts annually, while remittance of the tax is done on a monthly basis as required by the CIT Act.9. Over 95 per cent of Nigeria's crude oil production is covered by the PPT/MOU system, and taxation is calculated according to two different formulas. The first one is based on PPT and royalties without adjustments while the second is based on the MOU. In order to guarantee an after-tax margin based on crude oil levels, or operating and capital expenditure, the taxpayer is expected to choose the lower of the two taxes. However, the failure to ratify the MOU into law makes the administration of the petroleum profit tax cumbersome. The limitation on capital allowances eliminates the incentives offered by the accelerated capital depreciation policies and discourages investment: a PPT tax rate of 85 per cent in the form of royalties is being imposed (Section 19(1) of PPTA) while indigenous firms producing less than 50,000 barrels pay a rate ranging between 85 per and 30 per cent. Paragraph 6 of the Second Schedule of PPTA stipulated a 65.75 per cent taxation rate for this category of companies. Value-added tax (VAT) An important landmark in tax reform in Nigeria was the adoption of the value-added tax (VAT) in 1993 through the VAT Act No. 102 of 1993 but its implementation actually began in January 1994. The Act designated the FIRS as the body responsible for implementing VAT. An important challenge to administering VAT is the Nigerian business environment. Written records are crucial for VAT. Not only do invoices need to be issued, but recordkeeping is also important (Taliercio 2004). Apart from the fact that keeping records is not common in Nigeria yet, the economy is dominated by informal activities where traders are continually on 'the move'. African rating activities hinge on bargaining, and a commodity is sold at different prices, depending on the haggling powers of each buyer. This complicates the ascertainment of VAT Capital gains tax (CGT) This tax is imposed on any gain accruing to any person in connection with the disposal of assets during the assessment year. It also covers profits accruing from sold stocks and shares, and is applicable to both residents and non-residents. It is a concurrent tax, implying that the federal government, which has jurisdiction over corporate bodies and over residents of Lagos (now Abuja), administers it through FIRS. The states are empowered to tax individuals within their territories and the board of internal revenue of each state is responsible for capital gains tax with regard to individuals. Capital gains arising from the acquisition of companies' shares through a merger or takeover are exempted from CGT provided that no cash was paid for the acquired shares. It is currently at 10 per cent of the total proceeds. CGT is hindered by problems such as the unwieldy scope of the Act, clumsy process of determining taxable gain, the inability to discount for inflation, and the inability of loss relief within transactions. As pointed by the Study Group on Tax Reform (2003) and CITA (2002), the complex provisions of the Act made the implementation of the tax impractical. There is also confusion regarding the target of the tax; records and disclosures are scarce, and the inequitable tax burden is on the buyer rather the asset owner. These problems have reduced the significance of the tax, which by 2002 accounted for about 0.1 per cent of the revenue of FIRS. 39 European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.11, 2012 3. COMPLIANCE STRATEGIES AND HYPOTHESIS DEVELOPEMENT The OECD (2004), guidelines on managing and improving tax compliance suggests that effective application of compliance strategies depend on a revenue authority being strong in "three key capabilities: resources, design and execution." Researches have suggested some compliance strategies can address the needs of the Nigerian revenue authorities at the operational level and allow them to creating a more effective tax administration; fostering voluntary compliance and enhancing taxpayer morale and strengthening and enforcing compliance. From these compliance strategies, we develop our hypotheses. Creating a More Effective Tax Administration There are a number of possible strategies that can help to achieve a more effective tax administration. These include strategies related to organizational and institutional reform; management strengthening; nuts and bolts reform; and building integrity and tackling corruption. Recently, many developing countries have established their tax departments into autonomous or semi-autonomous revenue authorities ("ARAs"). Fjeldstad and Moore (2008) note that there were about 30 ARAs in the developing world, largely in Africa and South America and including Uganda (1991), Kenya (1995), South Africa (1997), Ethiopia (2002) and Gambia (2005). The defining feature of an ARA is some degree of autonomy whereby the revenue collection function is removed, either partly or wholly, from the Ministry of Finance. Taliercio (2004) argues that if one compares the pre- and post- reform state of affairs in countries where ARAs have been introduced, there is improvement in most cases along most dimensions of performance. Moreover, he suggests, the relatively more autonomous revenue authorities (such as Peru, Kenya and South Africa) have been more adept at increasing performance than the less autonomous ones (such as Uganda, Mexico and Venezuela). Fjeldstad and Moore (2008) suggest that many of the perceived advantages may have been short term and identify a number of conceptual and practical problems with ARAs that suggest they are not always the panacea that the World Bank may have suggested. Regardless of whether the revenue authority is constituted as an autonomous or semi-autonomous body, the way in which it is internally organised can have a significant impact upon the effectiveness of the tax administration. Vehon and Brondolo (1999) suggest that "A well-designed organizational structure can provide a foundation for effective tax administration, which minimizes tax evasion opportunities and fosters voluntary compliance". Strong internal controls, is suggested, as essential part of any strategy designed to address corruption in a revenue authority. Managers must be proactive and conduct desk and office inspections, and design procedures and systems that deter integrity lapses and make them easier to spot. Taxpayers access to designated taxpayer service areas may be restricted so that they cannot access other revenue authority work spaces. H1: The existing of deterrent tax measures in Nigeria has not enhanced tax compliance. Fostering voluntary compliance This has been an area where significant developments have taken place in recent years. There has been a very substantial shift in the attitudes of tax administrations towards taxpayers. OECD (2004) suggests that compliance is most likely to be optimised when a revenue authority pursues a citizen-inclusive approach to compliance through policies that encourage dialogue and persuasion, combined with an effective mix of incentives and sanctions". Gill (2003) noted that voluntary tax compliance does not have a long history in many developing countries. Tax administrations have come to recognise that a cooperative and positive engagement with taxpayers and their advisers in a customer-service focused and user-friendly environment will be more productive and efficient than more traditional adversarial and antagonistic approaches. As a result, the strategies designed to foster voluntary compliance have taken two broad and mutually supportive directions: building positive taxpayer and tax community morale; and making compliance easier and cheaper for taxpayers(Mckerchar and Evans 2009). To achieve the above will involve: making taxpayer obligations clear; Smoothing transactions and interactions, making it easier and cheaper to be complied with. The OECD (2004) pointed out that "if taxpayers do not understand what their obligations are, any intervention to enforce compliance will be perceived as unfair". It is therefore vital to make taxpayers' obligations clear – in the sense of being transparent, easy to understand, simple and non-confusing. A number of questions need to be asked in this regard such as: Is the law clear? Are the authority's administrative requirements clear? Are clear interpretative products, such as interpretive rulings, readily accessible? Are there clear information products available, in the language of the taxpayer? Are these products accessible in the taxpayers' channels of choice? Has there been adequate communication and marketing of the information available? Has this included publication in relevant industry or community vehicles? Are effective support services available to meet taxpayers' needs? (e.g. telephone enquiry services, web services, educational field visits etc) Have opportunities been taken to remind those potentially at risk of what their obligations are? H2: Fostering voluntary compliance will not affect tax compliance. Strengthening and enforcing compliance 40 European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.11, 2012 The overall strategy of a revenue authority should always be to encourage voluntary compliance wherever possible, and to facilitate such compliance by whatever means it can make available. But not all taxpayers are compliant, and many who are compliant some of the time are not compliant at other times. Taxpayers move up and down the compliance pyramid, or adopt different position on the compliance — non-compliance continuum, for a variety of reasons. The revenue authority must therefore have a range of tools, graduated in severity, to deal with non-compliance. These must be applied and seen to be applied as appropriate, in relation to the level of risk. The OECD has identified a number of strategies that progressively escalate the level of sanctions including: Customised letters alerting taxpayers to the fact that information they have reported is unusual for their industry or appears not to include income of which the authority is aware from third parties; walk-in (unannounced) visits to businesses. Such visits may provide the opportunity for a quick check of basic registration, record-keeping and reporting requirements; income/sales reviews which focus on the income of a business, recording processes, business procedures, matching of purchases and sales. Another issue is comprehensive audits. These are in-depth investigations seeking to identify the omission of income or overstatement of expenses, usually across more than one reporting period; serious evasion audits. Such audits may involve a range of compliance checks and lead to relatively higher penalties; and prosecution for cases of non-compliance involving large sums, persistent evasion or criminal activity. According to Mckerchar and Evans (2009), Some commentators suggest that a dedicated tax fraud unit should be established to tackle such cases, as it requires special skills including knowledge of the tax fraud legislation, knowledge of the courts and appeals systems, and law enforcement expertise and ability to liaise with other governmental offices. This appears to be a better idea than the introduction of a separate "Tax Police" introduced in some Eastern European and South American regimes which has a sub-optimal effect as it artificially splits tax law enforcement between two organisations . Gill (2003) noted that this "is perhaps still the weakest area in revenue administrations in most developing countries". It is therefore an area that deserves closer attention, by reference to specific further strategies (involving registration, verification, investigation and sanctions) that can ensure revenue authorities enforce compliance in the most efficient and cost-effective fashion. H3 Strengthening and enforcing compliance does not affect tax compliance. 4. METHODOLOGY The study attempted to empirically examine the effect of deterrent tax measures on tax compliance in Nigeria. The quota sampling method was used. The data used in the study was mainly primary data. A total of two hundred questionnaires were administered. Only one hundred and fifty questionnaires were returned and used for the analysis. Thus, the response rate was 75 percent. The questionnaires were administered to a cross section of Nigerian taxpayers in the private and public sectors respectively. The private sector establishments in focus include banking, manufacturing and construction industries. Organisations in the public sector considered for this study consist of Federal Government Ministries, Departments and Agencies in Nigeria. The questionnaires were administered to employees of these establishments to elicit responses on the perception of deterrent tax measures. The questions were structured on a five-point Likert scale ranging from Strongly Agreed to Strongly Disagreed. The administration procedure was by direct contact with the respondents. The method of data analysis used in the study is the ordinary least square (OLS) regression technique. This method was adopted because of its properties of consistency, unbiasedness and efficiency. The OLS regression technique was estimated using a computer software (Microfit 4.1). Model Specification In order to capture the effect of deterrent tax measures on tax compliance in Nigeria a model was built by the researcher. The variables used in the model were obtained from the questionnaires distributed. The model in its econometric form is specified as follows: Tax_Comp = β0 + β1Vol_Comp + β2Acc_Trans + β3Penalty + β4TaxDP + Ut Where: β0 = Intercept β1 – β6 = Parameters to be estimated Tax_Comp = Tax Compliance with Tax Administration Vol_Comp = Enforcing Voluntary Compliance Acc_Trans = Accountability and Transparency in the use of public funds PENALTY = Introduction of Stiff Penalties TaxDM = Tax Deterrent measures Ut = Stochastic error term 41 European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.11, 2012 5. DATA PRESENTATION AND ANALYSIS The result obtained from the preliminary ordinary least square estimation technique is presented below: Table 1: Ordinary Least Square Regression Result DEPENDENT Regressors Coefficient Standard Error T-Ratio VARIABLE TAX_COMP ACC_TRANS .067499 .083573 6.8767(0.24) PENALTY -2.2351 .10290 -3.4218(.001) Vol_Comp .044390 .078747 .56371(.574) TAXDM -.026872 .069108 -.38885(.698) Source: Researcher's Computation (2010) R-Squared = .63 R-Bar-Squared = .57 F-stat. F(5, 144) = 7.28 DW-statistic = 2.0284 Equation1 VOL_COMP = 2.36 + 0.07ACC_TRANS -2.23PENALTY + 0.044Vol_Comp - 0.026TAXDM 6. DISCUSSION OF RESULT The coefficient of determination (R2) with a value of 0.63 shows that about 63% of the total systematic variations in the dependent variable (Tax_Comp), have been explained by the explanatory variables taken together. The adjusted R-square shows that after adjusting for the degree of freedom, the model could still explain about 57% of the total systematic variations in Tax_Comp, while about 43% of the systematic variation in Tax_Comp was left unaccounted for, which has been captured by the stochastic disturbance term in the model. This indicates a good fit of the regression line and also the model has a high forecasting power. On the basis of the overall statistical significance of the model as indicated by the F- statistic, it was observed that the overall model was statistically significant since the calculated F- value of 7.28 was greater than the critical F- value of 2.2 at 5% level of significance. This shows that there exist a linear relationship between the dependent variable (Tax_Comp) and all the explanatory variables taken together. Furthermore, on the basis of the individual statistical significance, as shown by the t-ratios, it was observed that PENALTY, and ACC_TRANS, were statistically significant since their calculated t-values of 6.8 and -3.4 respectively was greater than the critical t-value of 1.96 at 5% level of significance under the two-tailed test. This means that PENALTY, and ACC_TRANS have a significant impact on Tax_Comp. While Vol_Comp, and TAXDP do not have any significant impact on Tax_Comp. The result also showed that ACC_TRANS and Vol_Comp had the expected a priori sign while PENALTY and TAXDM did not have the expected a priori sign. This means that an introduction of the stiff penalties would lead to a decrease in tax compliance. The reason for this result may be because in Nigeria, the laws are not fully implemented to the letter; hence tax compliance may not be enhanced even if stiff penalties are put in place. This appears inconsistent with the position of Gill (2003) who has suggested that the introduction of stiff penalties will boost tax compliance. The result also showed that the Durbin Watson statistic of 2.0 indicates the complete absence of first order autocorrelation in the model, hence we can have confidence in the model in predicting the tax compliance in Nigeria. 7. TEST OF HYPOTHESES In order to test the hypothesis of the study, the t-ratios obtained from the regression result was used. The study adopted 5% level of significance under the two-tailed test. Hypothesis 1 H1: The existing deterrent tax measures in Nigeria have not helped to enforce tax compliance. From the empirical analysis it was observed that TAXDP with a calculated t-value of 0.388 is less than the critical t- values of 1.96 at 5% level of significance. We therefore reject the null hypothesis and accept the alternative hypothesis which states that the existing deterrent tax measures in Nigeria have not helped to enforce tax compliance. Hypothesis 2 H2: Fostering voluntary compliance and enhancing tax payers' morale does not affect tax compliance. The empirical analysis shows that Vol_Comp with an observed t-value of 0.563 is less than the critical t-value of 1.96 at 5% level of significance. We therefore accept the null hypothesis and reject the alternative hypothesis which states that fostering voluntary compliance and enhancing tax payers morale does not affect tax compliance. Hypothesis 3 H3: Strengthening and enforcing compliance does not affect tax compliance. 42 European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.11, 2012 The empirical analysis shows that PENALTY with a calculated t-value of -3.4218 is lesser than the critical t-value of 1.96 at 5% level of significance. Therefore, we reject the null hypothesis and accept the alternative hypothesis which states that. Strengthening and enforcing compliance will affect tax compliance. SUMMARY, CONCLUSION AND RECOMMEDATIONS This paper examines the effects of deterrent tax measures on tax compliance in Nigeria. Questionnaire was designed and administered to a cross section of Nigerian tax payers. The responses from the field study were analysed using the OLS regression model and the hypotheses were tested therefrom. The results of our analysis revealed that the existing deterrent tax measures in Nigeria are inadequate and have not helped to promote tax compliance in the country. It was also discovered that fostering voluntary compliance and enhancing taxpayer's morale will enhance tax compliance in the country and finally that strengthening and enforcing taxpayers morale will enhance tax compliance. These findings appear to be consistent with OECD (2004) prescription on ways developing countries can increase their revenue base through taxation. We can therefore say that there is no single appropriate tax compliance strategy for Nigeria or for any developing country. Nigeria as well as other developing economies should explore the existing body of researches and practical experience from both developed and developing countries in order to come up with a strategy that works for her and that can help to enhance the countries taxpayers compliance. 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Ibadan: Nigeria Institute for Social and Economic Research. Presidential Committee on National Tax Policy (2008) Draft Document on the National Tax Policy, Draft 1.1 16 July 2008, available at http://www.nigeriantaxpolicy.org/ accessed 18 August 2008 "Representation without Taxation: An Essay on Democracy in Rural Nigerian, 1952-1990", African Studies Review, Vol. 35 No. 1, pp. 41-79. Reported in [2007] 10 NWLR (pt 1043) pp. 537-563. Schneider, F., (2004), "The Size of the Shadow Economies of 145 Countries all over the World: First Results over the Period 1999-2003", Discussion Paper 1431, Institute for the Study of Labour, Bonn. Study Group on Tax Reform (2003). Nigerian Tax Reform in 2003 and Beyond: The Main Report of the Study Group on the Nigerian Tax System. Abuja, July. Taliercio, R., (2004), "Designing Performance: The Semi-Autonomous Revenue Authority Model in Africa and Latin America", Policy Research Working Paper 3423, World Bank, October. Vehorn, C. and J. Brondolo, (1999), 'Organizational Options for Tax Administration', paper presented at 1999 Institute of Public Finance Conference, Zagreb, June. World Bank (2000). 'Review of the Flow of Funds in the Nigerian Petroleum Sector'. World Bank cited in Arowolo, O., (2007), "Moving Toward Responsible Tax Administration in Nigeria", Tax Notes international, December 17, pp. 1145-1147 at p. 1145. Guyer, J., (1992,) 44 This academic article was published by The International Institute for Science, Technology and Education (IISTE). The IISTE is a pioneer in the Open Access Publishing service based in the U.S. and Europe. The aim of the institute is Accelerating Global Knowledge Sharing. More information about the publisher can be found in the IISTE's homepage: http://www.iiste.org The IISTE is currently hosting more than 30 peer-reviewed academic journals and collaborating with academic institutions around the world. 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How To Hold Back An Orgasm And Last Longer in Bed - 7 Tips to Gain Extra Stamina Tonight!
Are you looking for ways to hold back your orgasm and last longer in bed?
As a man, you must last at least 10 minutes during intercourse in order to satisfy your lady. Many men suffer from premature ejaculation and they ejaculate within a minute (or seconds) into intercourse which leave their ladies unsatisfied.
If you can't hold orgasm long enough to satisfy your lady in bed, you ought to do something immediately. Premature ejaculation can affect your relationship... and in some cases, causes breakup and affair.
I would not want to see you in that situation.
To hold your orgasm and last longer in bed is not something rocket science. In fact, if you know the steps to do it, you can add extra few minutes to your intercourse starting tonight.
Now, let me share with you some tips to start lasting longer:
1. Release your tension before intercourse. You can either masturbate or tell her to give you a blowjob till you ejaculate. If you ejaculate too fast when she gives you the blowjob, just tell her that that is the best headjob ever. This will save you some face.
2. Don't start with the missionary position.The missionary position makes it very tight for your penis and cause ejaculation easily. Start with woman on top position which can allow you to last the longest. If your girl insist for the missionary position and you don't have a choice, there are ways to last longer in a missionary positions. Put a pillow underneath her bottom and keep your body upright. Don't lean forward.
3. Rotate your hip when you are about to ejaculate. Wait till the urge to ejaculate subsides before you continue thrusting.
4. Switch positions when you feel you are about to ejaculate. This is another easy way to add a few extra minute to your lovemaking.
5. Use a condom. Condoms decrease pleasure and allow you to last longer in bed.
6. Go slow in the beginning. Don't go thrusting like a porn star right from the beginning. Go slow, control your breathing and take it easy. Gradually increase your pace as time goes by.
7. Go deep inside her when you feel you are about to ejaculate (don't wait till the last minute!). This is a great technique as you don't need to stop stimulation at all. When you are inside her and feel the urge to ejaculate, just go as deep inside her as possible. Instead of thrusting in and out, start grinding up and down inside her.
I hope the techniques I have shared with you here will be useful to you. Try them out and see for yourself.
If you are looking for more effective tips to last longer in bed, check out the bonus tip below:
Discuss this Article
Premature ejaculation frustrates and embarrasses the man, frustrates the woman, and generally leaves both feeling uncomfortable and certainly unsatisfied. Now you can banish premature ejaculation with the simple steps below which all come together to help you last longer in bed and banish premature ejaculation.
Premature ejaculation can be fixed forever. And there are simple ways to overcome PE and truly enjoy sex in its full splendor... without blowing prematurely. Here I'll share one simple maneuver that will give you a lot more staying power... and tantalize her with the most jaw-dropping sex, yet!
Trying to find ways to prevent premature ejaculation can be difficult. Especially when you're not sure what to do to prevent it. So, what I'm going to do is share with you some ways to prevent premature ejaculation. That way, you'll be able to last longer when you are having sex.
Sex is almost an absolute necessity in life and forms the basis of many enduring relationships. But many men simply fall short when it comes to lasting longer in bed. Premature ejaculation or PE is often the bane of guys who wish they have the endurance to
Is your sex life taking a turn for the worse because you are not lasting long enough in bed? Do you fear your wife or girlfriend cheating behind your back because of the lousy sex you are giving her? When it comes to making love, most men are unrealistic about the expected duration of intercourse. Many guys are influenced by hearsay amongst male friends who brag about how long they can last in bed, or even from adult movies that depict male actors seemingly going on for hours during the sets.
How to Beat Premature Ejaculation & Improve Stamina in Bed - Secrets That Porn Stars Are Not Telling
When it comes to getting accolades for lasting long enough in the bedroom, many men simply fall short of it. The vast majority of men do not last beyond 4 minutes of straight sex, and a number of us even have the dubious distinction of ejaculating within seconds. But the
It is every guy's predominant fear in the bedroom. It often rears its ugly head before the fun even begins and takes the sizzle out of a night of great sex. Premature ejaculation is an embarrassing problem that makes real men think they are inadequate when it comes to pleasing their women. Yet most guys prefer to suffer in silence, sorely mistaken there is nothing they can do about it. But the simple truth is this -
It is every guy's predominant fear in the bedroom. It often rears its ugly head before the fun even begins and takes the sizzle out of a night of great sex. Premature ejaculation is an embarrassing problem that makes real men think they are inadequate when it comes to pleasing their women. Yet most guys prefer to suffer in silence, sorely mistaken there is nothing they can do about it. But the simple truth is this -
There are many techniques, and claims of products that will help you with premature ejaculation, but in fact, if you finish quickly, there is a reason for it. You are under stress; you are too excited, or just in a hurry. The following guide will show you how to last longer in bed and prevent premature ejaculation, without any special product or expensive counseling.
Premature ejaculation is not something out of this world because it happens to almost 48% of men at some stage of their lives. The only problem is that if this is not treated it will have a negative impact on your personal life especially when you are married.
Sex tips can help men improve their sexual encounters. When considering such tips, remember that the condition of the bedroom has an impact on sex.
Uncontrolled penis odor can result in a major date disaster. Men want to make sure they take appropriate steps to eliminate unwanted penis odor before an outing with a potential partner.
Pornography is not everyone's cup of tea, but many couples who view it together find the experience can lead to better sex.
The search for perfect Valentine's Day gifts is on. This year, why not invest in presents that both partners can enjoy together? The following list of sex toys will help guide men and their partners to greater pleasure.
While some causes of penis bumps require treatment, others are natural and harmless. Men can learn about three types of bumps that may affect the penis but are not causes for concern here.
It's hard to fully enjoy sex when one has a numb penis. Restoring lost sensitivity (or preventing it from occurring) enables a man to enjoy sexual pleasure to the fullest.
An itchy penis is a common problem for many men, but it may present a special problem for those with a latex allergy, as it may make using condoms an issue.
Exercise is beneficial to several areas of one's life, including sex. Learn the best exercises for better sex.
Are you trying to slow down your orgasm and last longer in bed to satisfy your lady?
I believe the reason you are reading this article is because you have a problem with premature ejaculation. If you are looking for tips to go longer in bed, you are at the right place.
The reason you need to act now is because if you are not lasting longer enough during intercourse, your partner will not be satisfied with your performance. She won't be able to reach orgasm.
You can last longer in bed naturally without the need of any pill or cream. In fact, the tips that I am going to share with you here are easy to implement and you can start seeing result as soon as tonight.
When you can't last long enough to satisfy your lady, she is going to be deprived of great sex and it will hurt your relationship. And also not to mention in some cases, women cheat on their men because of their inability to satisfy them in bed.
Premature ejaculation affects one-third of all men around the world. It is the most common male sexual problem and is affecting the sex life of many couples.
One of the most common reasons why women cheat on their men is because of their inability to satisfy them in bed due to premature ejaculation.
Are you looking for methods to last longer in bed? Is premature ejaculation making you embarrassed about your performance in the bedroom and leave your girlfriend/wife unsatisfied?

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