Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between going concern assessment and voluntary tax compliance has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of the Federal Capital Territory, Abuja where operating conditions differ markedly from more developed markets.

the Federal Capital Territory, Abuja presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

Despite a growing body of literature on going concern assessment, there remains limited consensus on the precise nature of its relationship with voluntary tax compliance, particularly within the Federal Capital Territory, Abuja. Many organizations continue to make decisions about going concern assessment without a clear, evidence-based understanding of how those decisions ultimately affect voluntary tax compliance. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Going Concern Assessment on voluntary tax compliance in the Federal Capital Territory, Abuja.
2. To assess the extent to which going concern assessment influences voluntary tax compliance within the study area.
3. To identify the challenges associated with going concern assessment in relation to voluntary tax compliance.
4. To recommend strategies for optimizing going concern assessment in order to improve voluntary tax compliance.

1.4 Research Questions

1. What is the effect of going concern assessment on voluntary tax compliance in the Federal Capital Territory, Abuja?
2. To what extent does going concern assessment influence voluntary tax compliance within the study area?
3. What challenges are associated with going concern assessment in relation to voluntary tax compliance?
4. What strategies can be adopted to optimize going concern assessment in order to improve voluntary tax compliance?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around voluntary tax compliance. For managers and practitioners within the Federal Capital Territory, Abuja, the study provides practical insight into how going concern assessment can be better managed. Finally, it contributes to the academic literature on accounting by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

In terms of scope, this study confines itself to the Federal Capital Territory, Abuja, focusing specifically on how going concern assessment relates to voluntary tax compliance within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.