Tax Socialisation and Voluntary Tax Compliance Behaviour: Does Public Trust Matter?

This study examined the moderating effects of public trust on association between tax socialization and voluntary tax compliance behaviour of informal sector operators in Bayelsa State, Nigeria. The study employed cross sectional survey research design with a population of 30,450 informal sector operators and stratified sampling technique was adopted. Primary data was obtained from questionnaires after validity and reliability tests were conducted and the responses obtained from the administered questionnaires were analysed using univariate, bivariate and multivariate analysis. The results from the analysis suggested a positive and significant relationship between tax socialization and voluntary tax compliance of informal sector operators in Bayelsa State, Nigeria; a positive and significant relationship between public trust and voluntary tax compliance of informal sector operators in Bayelsa State, Nigeria; and Public trusts positively and significantly moderates the relationship between tax socialisation and voluntary tax compliance of informal sector operators in Bayelsa State, Nigeria. The study concludes that tax socialisation influences voluntary tax compliance of taxpayers with public trusts as a moderator. Consequently, the study recommends amongst others that the government and revenue authorities should provide continuous accountability and transparency of government activities with both direct and indirect tax socialization of taxpayers and fashion appropriate ways of recapturing the public trust of taxpayers.