Determinants of Voluntary Tax Compliance in SMES.

Author(s) :

1Amedu, Jimoh Michael Adinoyi, , 2Umaigba, Franklin Taiye, 3Aiworo, Doris Esohe.

Volume/Issue :

Abstract :

The objective of the study is to examine the determinants of voluntary tax compliance in SMEs. The research design used in the study is the survey research design. The study adopted a sample of 354 SMEs operating in Edo State using simple random sampling technique. The nature and non-availability of publicly available secondary data on SMEs necessitated the use of primary data for the study. This study adopts questionnaire as the research instrument. The study made use of chi-square non-parametric statistics in the analysis of the data. The chi-square statistics is used in this study to show the relationship between the independent and dependent categorical variables. Based on the study findings, the following recommendations are made; that there is the need for both formal and non-formal trainings for SMEs operators. And that tax authorities should work at improving their tax service quality as this has been found to influence voluntary compliance. Finally, many SMEs do not understand the basics of tax filling especially under the new self-assessment regime. Thus, the study recommends that there is the need to reduce any bottlenecks and complexity in the tax system so as to make it easier for SMEs to comply voluntarily. Key words: Tax determinants, Voluntary Tax, Non-voluntary tax, tax knowledge, tax compliance

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