Chapter One — 1.1 Background to the Study

Presumptive Tax Assessment has increasingly attracted the attention of researchers, regulators, and practitioners concerned with taxpayer satisfaction. This growing interest reflects the recognition that presumptive tax assessment does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Selected States in South-West Nigeria.

Selected States in South-West Nigeria 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

While presumptive tax assessment is widely discussed in policy and industry circles, empirical evidence on its actual effect on taxpayer satisfaction within Selected States in South-West Nigeria remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to presumptive tax assessment are helping or hindering taxpayer satisfaction — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Presumptive Tax Assessment on taxpayer satisfaction in Selected States in South-West Nigeria.
2. To assess the extent to which presumptive tax assessment influences taxpayer satisfaction within the study area.
3. To identify the challenges associated with presumptive tax assessment in relation to taxpayer satisfaction.
4. To recommend strategies for optimizing presumptive tax assessment in order to improve taxpayer satisfaction.

1.4 Research Questions

1. What is the effect of presumptive tax assessment on taxpayer satisfaction in Selected States in South-West Nigeria?
2. To what extent does presumptive tax assessment influence taxpayer satisfaction within the study area?
3. What challenges are associated with presumptive tax assessment in relation to taxpayer satisfaction?
4. What strategies can be adopted to optimize presumptive tax assessment in order to improve taxpayer satisfaction?

1.5 Significance of the Study

Beyond its academic contribution to the field of taxation, this study has practical value for management teams within Selected States in South-West Nigeria seeking to understand how presumptive tax assessment translates into measurable outcomes around taxpayer satisfaction. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

The study is limited to an examination of Presumptive Tax Assessment and its relationship with taxpayer satisfaction within the context of Selected States in South-West Nigeria. It reflects a clearly defined scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.