A STUDY ON THE IMPACT OF TAX EDUCATION IN PROMOTING TAX COMPLIANCE AMONG RESIDENTS IN CAMEROON

CHAPTER ONE INTRODUCTION 1.1 Background of the Study According to Shamana and Alito (2020), taxpayer education serves as a tool designed to equip taxpayers with a clear understanding of tax laws and procedures. This involves training specialized units within revenue departments to offer education, counseling, and support to taxpayers. Various communication channels are utilized in this effort, including newspapers, TV, radio programs, websites, seminars, and direct assistance at service desks. The primary aim is to disseminate crucial tax information to taxpayers, thereby encouraging widespread compliance. Tax compliance, as defined by Tehulu (2016), entails accurately reporting all income sources and fulfilling tax payment obligations according to existing laws, regulations, and judicial rulings. More specifically, Musau (2015) describes tax compliance as the precise completion of income tax forms, full disclosure of taxable income, and timely payment of due taxes without requiring follow-up from tax authorities. Harelimana (2018) further emphasizes that taxpayers must submit all relevant information in their tax forms within stipulated deadlines and ensure that the declared tax aligns with legal requirements. Any failure, whether intentional or accidental, to adhere to tax laws is considered a violation. In her 2021 study, Ewa compiled a comprehensive list of 14 key factors that have been widely researched regarding their influence on tax compliance. These factors include age, gender, education, income, occupation or status, peer influence, ethics, legal consequences, tax system complexity, relationship with tax authorities, income sources, perceived fairness of the tax system, likelihood of audits, and tax rates. Among these, the level of tax education stands out as a significant influence on taxpayers’ willingness to comply. The importance of tax education in improving compliance is supported by Backer’s (1964) human capital theory, which posits that education or training equips individuals with vital knowledge and skills that enhance their performance. Specifically, when taxpayers are educated about the benefits of paying taxes, their compliance levels tend to improve substantially. Despite this, there remains limited research on how much tax education campaigns actually boost compliance. The effectiveness of government-led tax education programs in shaping taxpayer behavior is not yet fully understood (Anyaduba & Oboh, 2019). Given this gap, it is crucial to evaluate how tax education impacts tax compliance in Cameroon. Such an assessment would offer useful insights for policy formulation and improve tax administration strategies. Therefore, this study aims to assess the effectiveness of tax education initiatives in enhancing tax compliance among various groups within Cameroon. It seeks to explore the relationship between tax education efforts and taxpayer compliance behavior, evaluate the success of current programs, and recommend improvements. Consequently, the researcher intends to investigate the role of tax education in fostering greater tax compliance in Cameroon. 1.2 Statement of the Problem Despite the establishment of tax laws and enforcement mechanisms by the Cameroonian government, achieving high levels of tax compliance remains a significant challenge. Non-compliance continues to undermine government revenue collection efforts, thereby threatening its ability to provide essential public services and support economic development projects (Wolde, 2016). While tax education initiatives are widely recognized as vital tools for encouraging voluntary compliance, their actual impact within Cameroon has not been adequately explored. There is a noticeable lack of comprehensive research examining how tax education influences compliance behavior among different segments of the Cameroonian population (Wolde, 2016). This gap in knowledge limits policymakers’ and tax authorities’ ability to develop and implement effective strategies to improve compliance rates. Hence, this study aims to evaluate the influence of tax education on enhancing tax compliance in Cameroon. 1.3 Objective of the Study The main objective of this research is to evaluate how tax education influences the enhancement of tax compliance in Cameroon. The specific objectives include: i. To determine whether tax education improves taxpayers’ understanding of their tax obligations in Cameroon. ii. To assess the impact of tax education on actual tax compliance within Cameroon. iii. To identify the challenges hindering the effective implementation of tax education programs in Cameroon. iv. To propose recommendations that could improve tax education efforts to foster better compliance in Cameroon. 1.4 Research Questions The study seeks to answer the following questions: i. Does tax education influence taxpayers’ understanding of their tax obligations in Cameroon? ii. What is the effect of tax education on tax compliance in Cameroon? iii. What challenges affect the effective implementation of tax education programs in Cameroon? iv. What recommendations can be made to enhance tax education for improved tax compliance in Cameroon? 1.5 Significance of the Study This research is important for several groups. Policymakers, tax authorities, and stakeholders involved in tax education can benefit from the insights provided, helping them design and implement more effective tax education initiatives. Ultimately, the study aims to foster a culture of voluntary tax compliance, improve government revenue mobilization, and support sustainable economic growth in Cameroon. Additionally, the research will add to academic literature on tax compliance and education, particularly within the context of developing countries like Cameroon. 1.6 Scope of the Study The focus of this study is on the influence of tax education in promoting tax compliance among residents in Cameroon. Specifically, it will investigate whether tax education enhances taxpayers’ understanding of their tax responsibilities, examine its impact on compliance behavior, identify obstacles to effective tax education, and offer recommendations for improving such programs to boost compliance. 1.7 Limitation of the Study Like many research endeavors, this study faced certain limitations. Limited funding constrained the researcher’s ability to access all relevant materials and conduct extensive data collection through internet resources, questionnaires, and interviews. Consequently, a moderate sample size was chosen. Moreover, since the researcher had to balance this study alongside other academic commitments, the amount of time available for research was reduced. 1.8 Definition of Terms Tax Compliance: The extent to which taxpayers follow tax laws by accurately reporting income, calculating tax liabilities correctly, and paying taxes on time. Tax Education: The process of providing taxpayers with information, guidance, and knowledge about their tax rights, responsibilities, and obligations, aimed at improving understanding and compliance with tax regulations. REFERENCES Anyaduba, J.O., & Oboh, T. (2019). Determinant of tax compliance behaviour under the selfassessment scheme in Nigeria. Accounting and Finance Research. 8(2), 13-31. Ewa, U. E. (2021). Appraisal of self-assessment tax policy in Nigeria. European Journal of Business and Management Research, 6 (1), 189 – 197. Doi: http://dx.doi.org/10.24018/ejbmr.2021.6.1.693. Harelimana, J.B. (2018). The role of taxation on resilient economy and development of Rwanda. Journal of Finance Marketing, 2(1), 28-39. Musau, N. (2015). Determinants of tax compliance among small and medium enterprises in Kenya: A case of Nairobi Country. School of Economics, University Of Nairobi. Shamana, T.T. and Alito, W. A. (2020). The Influence of Tax Education on Obeying Tax Liability: A Statistical Methods and Results. Journal of Economics, Management and Trade. 26(7), 38-52, DOI: 10.9734/JEMT/2020/v26i730273. Tehulu, T.A. (2016) Factors Influencing Tax Compliance Attitude in Ethiopia: A Multivariate Analysis. Journal of Policy and Development Studies. 10 (3), 104-117. Wolde, K. D. (2016). Factors Affecting Tax Compliance of Small and MediumBusiness Profit Taxpayers in Addis Ababa. 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