EFFECT OF PUBLIC TRUST ON TAX FRAUD IN PLATEAU STATE INTERNAL REVENUE SERVICE (PSIRS)

Abstract

The study examined Effect of public trust on tax fraud in Plateau State Internal Revenue Service (PSIRS). A survey design was adopted for the study. In this study the total population is 453 made up of 250 staff of Plateau State Internal Revenue Service (PSIRS) in Plateau State and 203 workers of some selected Small and Medium Enterprises (SMEs) in Jos Metropolis in Plateau State. Taro Yamane formula for sample size determination was used to ascertain the sample size for this study to be 212. The study employed the use of structured questionnaire as method of data collection and the hypotheses were tested using multiple regression using SPSS 26 as method of data analysis. Findings showed that Transparency has a negative significant effect on tax fraud in Plateau State Internal Revenue Service (PSIRS) and public accountability has a negative significant effect on tax fraud in Plateau State Internal Revenue Service (PSIRS). The study concludes that public trust has a negative significant effect on tax fraud in Plateau State Internal Revenue Service (PSIRS). The study recommended that the PSIRS should strengthen transparency through full automation of tax administration, public disclosure of revenue reports, and taxpayer verification systems and that the PSIRS should reinforce public accountability through staff audit trails, whistleblower channels, regular compliance audits, staff rotation, and strict sanctions for fraudulent officers. The implications of the study suggest that the study extends existing tax compliance and public administration literature by demonstrating that accountability and transparency are not merely normative ideals but measurable determinants of fraud control within subnational revenue institutions such as PSIRS.