ODIKA Samuel Benedict

This study investigated the factors affecting voluntary tax compliance by SMEs. Specifically, the study sought to establish the effect of complexity of Nigerian tax system, SMEs perception of tax fairness, tax education and awareness, external stakeholders, cultural and socioeconomic factor on voluntary tax compliance by SMEs. The study used the primary research instrument through the administration of questionnaire to source data needed for the study. The study targeted a sample of two hundred (200) respondents, in which a total of 200 questionnaires were distributed and same number (200) was filled, retrieved, cleaned and used for this study. The data collected was analyzed using SPSS version 20.0 and descriptive statistics was used to present the results while regression test was employed to make findings on the research hypotheses. It was revealed that: the complexity of Nigerian tax system is not significantly related to voluntary tax compliance by SMEs; SMEs’ perception of tax fairness is significantly related to voluntary tax compliance by SMEs; tax education and awareness is not significantly related to voluntary tax compliance by SMEs; external stakeholder is not significantly related to voluntary tax compliance by SMEs; and cultural and socioeconomic factor is significantly related to voluntary tax compliance by SMEs. Based on these findings, it was recommended that: it is essential to invest in more comprehensive and targeted tax education programs for SMEs; tax authorities should strive for transparent and equitable tax policies and practices; simplifying tax procedures and reducing bureaucratic hurdles can make it easier for SMEs to comply voluntarily; policymakers should cultural and socioeconomic aspects when designing tax policies and interventions; and it is still crucial for tax authorities to engage with external parties such as business support organizations, consultants, and tax professionals

This study investigated the factors affecting voluntary tax compliance by SMEs. Specifically, the study sought to establish the effect of complexity of Nigerian tax system, SMEs perception of tax fairness, tax education and awareness, external stakeholders, cultural and socioeconomic factor on voluntary tax compliance by SMEs. The study used the primary research instrument through the administration of questionnaire to source data needed for the study. The study targeted a sample of two hundred (200) respondents, in which a total of 200 questionnaires were distributed and same number (200) was filled, retrieved, cleaned and used for this study. The data collected was analyzed using SPSS version 20.0 and descriptive statistics was used to present the results while regression test was employed to make findings on the research hypotheses. It was revealed that: the complexity of Nigerian tax system is not significantly related to voluntary tax compliance by SMEs; SMEs’ perception of tax fairness is significantly related to voluntary tax compliance by SMEs; tax education and awareness is not significantly related to voluntary tax compliance by SMEs; external stakeholder is not significantly related to voluntary tax compliance by SMEs; and cultural and socioeconomic factor is significantly related to voluntary tax compliance by SMEs. Based on these findings, it was recommended that: it is essential to invest in more comprehensive and targeted tax education programs for SMEs; tax authorities should strive for transparent and equitable tax policies and practices; simplifying tax procedures and reducing bureaucratic hurdles can make it easier for SMEs to comply voluntarily; policymakers should cultural and socioeconomic aspects when designing tax policies and interventions; and it is still crucial for tax authorities to engage with external parties such as business support organizations, consultants, and tax professionals.