Determinants of Tax Compliance Among Small and Medium-Scale Enterprises in Ekiti State, Nigeria

Abstract

The study investigated the factors influencing tax compliance among small and medium-scale enterprises (SMEs) in Ekiti State. The population of the study consisted of all full-time staff members of Ekiti State Internal Revenue Services, totaling 321 individuals. Taro Yamane formula was used to determine the sample size. The primary data for this study was collected through a survey questionnaire. Both descriptive and inferential statistical techniques were applied to analyze the data. Descriptive statistics, including mean, standard deviation, and frequency distribution, were employed to provide a comprehensive overview of the variables under investigation. The findings from the study indicated that the social-cultural factor exhibited a negative and statistically insignificant influence on tax compliance among SMEs. Similarly, the political factor showed a positive but statistically insignificant effect on tax compliance. However, the religious factor exerted a positive and statistically significant impact on tax compliance among SMEs in Ekiti State. The study concluded that government has a vital role to play in enhancing the benefits of taxation to taxpayers and fostering a more positive relationship between taxpayers and tax authorities. The study therefore recommended that in order to improve a better understanding in the dynamics of tax compliance among SMEs in the region,Top of Form tax revenues should be allocated towards public goods that benefit society as a whole, whereby taxpayers may perceive their contributions as part of a strategic collective action, enhancing their commitment to paying taxes to the government in return. Top of Form