Abstract:

This paper examined the effect of tax transparency and accountability on tax culture in Nigeria. The survey research method was adopted. Data obtained from respondents selected from four major audit firms in Nigeria (PwC, KPMG, Ernst & Young, Akintola Williams Deloitte) were analyzed using the method of ordinary least squares. A sample of 270 respondents was used for the study. Tax compliance, tax evasion, tax disclosure, tax avoidance, and tax revenue were adopted as proxies for tax transparency and accountability. The parameters were estimated at 5 per cent level of significance. The result shows that tax compliance has significant positive effect on tax culture while tax evasion and tax avoidance indicate significant negative effect. The study also produced evidence of positive effect of tax disclosure on tax culture but it is not significant. R² and adjusted R² values of 42.8 per cent and 38.2% show moderately strong explanatory power of the independent variables.