THE EFFECT OF TAX POLICY ON COMPLIANCE AMONG SMALL AND MEDIUMSCALE ENTERPRISES IN SOUTHWESTERN, NIGERIA

Abiodun O. Oladejo,, James Unam Monday, and Olubode Olusegun Oladele
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Abiodun O. Oladejo,: Department of Management and Accounting, Postal: Obafemi Awolowo University, Ile-Ife, Nigeria, https://journal.citn.org/
James Unam Monday,: Department of Management and Accounting, Postal: Obafemi Awolowo University, Ile-Ife, Nigeria, https://journal.citn.org/
Olubode Olusegun Oladele: Olaolubode Professional Services, Postal: Osogbo, Osun State, Nigeria, https://journal.citn.org/

Journal of Taxation and Economic Development, 2019, vol. 18, issue 3, 48-72

Abstract: Major objective of Nigeria National tax policy is to ensure a robust tax system that will promote voluntary compliance with tax policy by taxpayers and enhance constant revenue generation by governments at all levels. However, the objective has not been achieved in Nigeria due to the alarming level of SMEs’ non-compliance with tax policy. This study specifically determined the level of awareness of tax policy among SMEs in Southwestern Nigeria; examined the extent of compliance with tax policy among SMEs; and analysed challenges encountered by the SMEs on compliance with tax policy. The study employed primary data. The population of the study comprised 730 registered SMEs in Southwestern Nigeria. Using Yamane’s formula, a sample of 452 SMEs was selected. Structured questionnaires were used to obtain data on voluntary compliance and taxpayers’ awareness. Data collected were analysed using percentage, mean, least square method and Chi-square test of independence. The results showed that the operators of SMEs in the Southwestern Nigeria have low level of awareness of tax policy (𝑋 ̅ = 2.88). The study also revealed low level of compliance with tax policy among SMEs (𝑋 ̅ = 2.87). Furthermore, the results revealed that awareness of tax registration (t = 6.755, p

Keywords: Tax policy; SMEs; Taxpayer’s awareness; Compliance level; Southwestern Nigeria (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jotaed:0030

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