Peter Gbalam’s scientific contributions

This study examines the effect the various tax rates (i.e., corporate tax, personal income tax and sales tax) have on tax compliance in the African nations. The tax-to-GDP ratio of these countries were used as a proxy for tax compliance and these data were obtained from the 2019 OECD revenue statistics in Africa, KPMG and trading economic sites. SPSS version 25 was used to run the regression analysis. The result reveals that the corporate tax rate has a negative and statistically significant effect on tax compliance level in Africa. The result also shows that the personal income tax rate and the sales tax rate have a positive effect on tax compliance. However, these effects are not statistically significant.The study concludes that an increase in corporate tax rate will lead to further tax non-compliance in African nations. Therefore, the study recommends that countries whose corporate tax rate is above the continent average of 28.21% and are experiencing non-compliance should reduce their tax rate to the mean tax rate.