Factors influencing Tax Compliance among Small and Medium Enterprises in Kwara State
The proportion of income taxes from small and medium enterprises in Kwara State has been on the decrease. This is due to low tax compliance. This study investigates the factors underlying individual taxpayers compliance of SMEs owners in Kwara State. Primary data were collected through self-administered questionnaire. The population of the study is the 365 owners of SMEs registered with the Kwara State Internal Revenue Service. The sample size is 186 obtained through stratified sampling technique. The data was analyzed using multiple regression technique. Results of the study show that tax awareness has positive significant effect on tax compliance. Results also show the taxpayers’ perception about government responsibilities has significant positive effect on tax compliance. The study concluded that tax awareness and taxpayer’s perception on government responsibilities are important considerations as far as tax compliance by SMEs owners in Kwara State is concerned. The study therefore recommends that government should further increase public awareness on tax matters and endeavor to increase the provision of social amenities and infrastructural facilities such as good health services among others.
