AN EVALUATION OF THE INFLUENCE OF TAX EDUCATION IN ENHANCING TAX COMPLIANCE IN CAMEROON

CHAPTER ONE

INTRODUCTION

Background of the Study

Shamana and Alito (2020) define taxpayer education as a mechanism intended to empower taxpayers with knowledge about tax rules and processes. They stated that the process includes training specialised units within the revenue departments to provide education, counselling, and support to taxpayers. This is done through various media channels such as newspapers, television, radio programmes, websites, seminars, and front desk assistance. The goal is to distribute important information to taxpayers in order to promote tax compliance among the general population. Tax compliance, as described by Tehulu (2016), refers to the act of accurately reporting all sources of income and completing the obligation to pay all taxes in accordance with the conditions outlined in laws, regulations, and court judgements. Tax compliance may be defined as the act of precisely completing the Income Tax Form, disclosing all taxable income, and promptly paying all the taxes within the specified timeframe, without requiring further action from the authorities (Musau, 2015). Harelimana (2018) said that taxpayers are required to compile all pertinent information in the Income Tax Form within the designated timeframe. The form must accurately disclose the tax due in compliance with applicable laws, regulations, and court rulings. Individuals who deliberately or unintentionally fail to comply with taxes regulations will be regarded as having committed an infraction. In her 2021 study, Ewa identified and compiled a comprehensive list of 14 key characteristics that have been extensively examined by scholars in relation to their impact on tax compliance. The elements that impact taxes include age, gender, education, income, occupation or status, the influence of peers or other taxpayers, ethics, legal consequences, the complexity of the tax system, the connection with the taxation authority (IRS), income sources, the perceived fairness of the tax system, the potential of being audited, and the tax rate.The amount of tax education among taxpayers is an important element that influences tax compliance. The significance of tax education in deciding tax compliance is apparent in Backer's (1964) human capital theory.The author's hypothesis asserts that education or training provides valuable information and skills, resulting in improved performance within the targeted population. The individual explicitly asserts that tax compliance will be significantly increased when tax education is provided to taxpayers, enabling them to get the necessary information and skills about the advantages of paying taxes. There is little research on the extent to which tax education campaigns improve tax compliance. The effectiveness of tax education programmes conducted by the government and tax authorities in influencing taxpayer behaviour is uncertain (Anyaduba & Oboh, 2019). Hence, it is important to assess the impact of tax education on tax compliance in Cameroon in order to provide guidance for policy-making and enhance tax administration tactics. The objective of this study is to evaluate the efficacy of tax education initiatives in improving tax compliance among various groups of the Cameroonian population. This research aims to analyse the correlation between tax education efforts and taxpayers' compliance behaviour. Its objective is to assess the effectiveness of current tax education programmes and suggest ways to enhance them. Therefore, the researcher sought to  evaluate the influence of tax education in enhancing tax compliance in Cameroon.

1.2 Statement of the Problem

Although the Cameroonian government has put in place tax regulations and enforcement tools, attaining substantial levels of tax compliance continues to be a major hurdle in the nation. The failure to comply with tax legislation persists, undermining the government's attempts to collect income and jeopardising its capacity to provide vital public services and maintain economic development projects (Wolde, 2016). Although tax education programmes are commonly seen as essential instruments for encouraging voluntary compliance, their impact in Cameroon remains little studied. The present literature on tax compliance behaviours in Cameroon lacks comprehensive research that evaluates the impact of tax education on diverse sectors of the public (Wolde, 2016). Policymakers and tax authorities are unable to develop and execute effective measures to enhance compliance rates because they lack actionable information due to a lack of knowledge of the effectiveness of tax education activities. Hence, the study evaluate the influence of tax education in enhancing tax compliance in Cameroon

1.3 Objective of the Study

The broad objective of the study is to evaluate the influence of tax education in enhancing tax compliance in Cameroon. The specific objectives is as follows

Examine whether tax education influences taxpayers' understanding of tax  obligations in Cameroon.

Examine the influence of tax education on tax compliance in Cameroon.

Identify the challenges to effective tax education implementation in Cameroon

Proffer recommendations aimed at improving tax education in other for enhanced tax compliance in Cameroon

1.4 Research Questions

The following questions have been prepared for the following

Does tax education influences taxpayers' understanding of tax  obligations in Cameroon?

What is the influence of tax education on tax compliance in Cameroon?

What are the recommendations aimed at improving tax education in other for enhanced tax compliance in Cameroon?

What are the challenges to effective tax education implementation in Cameroon?

1.5 Significance of the Study

The findings of the study will provide valuable insights for policymakers, tax authorities, and other stakeholders involved in designing and implementing tax education initiatives. Ultimately, the goal is to promote a culture of voluntary tax compliance, strengthen revenue mobilization efforts, and support sustainable economic growth in Cameroon.

Also the findings of this research will be significant to academia as it will contribute to the existing literature on tax compliance and education, particularly in the context of developing countries like Cameroon. 

1.6 Scope of the Study

The study focuses on the influence of tax education in enhancing tax compliance in Cameroon.  Empirically, the study will examine whether tax education influences taxpayers' understanding of tax  obligations in Cameroon, examine the influence of tax education on tax compliance in Cameroon, identify the challenges to effective tax education implementation in Cameroon and proffer recommendations aimed at improving tax education in other for enhanced tax compliance in Cameroon

1.7 Limitation of the Study

Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection (internet, questionnaire, and interview), which is why the researcher resorted to a moderate choice of sample size. More so, the researcher will simultaneously engage in this study with other academic work. As a result, the amount of time spent on research will be reduced.

1.8 Definition of Terms

Tax Compliance: The degree to which taxpayers adhere to tax laws and regulations by accurately reporting their income, calculating their tax liability correctly, and timely paying the required taxes.

Tax Education: The process of providing information, guidance, and knowledge to taxpayers regarding their tax rights, obligations, and responsibilities, with the aim of promoting understanding and compliance with tax laws.