Multiple Taxations and Performance of Small and Medium Scale Enterprises in Southwest Nigeria
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Date
2024-12
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Lead City University, Ibadan
Abstract
The study examines the effect of multiple taxations on performance of SMEs in southwest Nigeria, the specific objective was to determine the extent to which Value Added Tax, Company Income Tax and Pay As You Earn Tax influences the performance of SMEs in Southwest, Nigeria. This study used the ex post facto research design, and the study population concentrated on SME’s within southwest, Nigeria who have their data with the Nigerian government from year 2018 to 2023, simple random sampling technique was also used such that all population elements are accorded a proportionate likelihood of being nominated within the sample. Panel Ordinary Least Square (OLS) regression analysis was applied using E-views 10, statistical package for the data analysis. The outcome of the first hypothesis shows a P-value of Value Added Tax to be 0.5462 (t= -0.611458) meaning that Value Added Tax has no statistically significant effect on performance of SME’s in Nigeria, Also The result from hypothesis two shows a significant value of Company Income Tax to be 0.0054 (t= -1.097030) meaning that the null hypothesis is rejected and can be confirmed that Company Income Tax have a statistically significant effect on Performance of SME’s in Nigeria. Hypothesis three also revealed a P- value of pay as you earn to be 0.0034 (t=11.27749) meaning that the null hypothesis is rejected and can be confirmed that pay as you earn have a statistically significant effect on performance of SMEs in Nigeria. The findings
showed that multiple taxation is a key factor affecting the performance of SME’s. Data analysis showed a significant relationship which indicate that Company Income Tax is
paramount to performance of SMEs in Nigeria. It is recommended that SMEs should understand current tax rates and stay updated with changes in legislation, develop a strategic tax plan that aligns with business goals, focusing on the timing of income and expenses to manage taxable profit
Keywords: Pay As You Earn, Multiple Taxation, Company Income Tax, Value Added Tax, Taxation
Word Count: 315
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Keywords
Pay As You Earn, Multiple Taxation, Company Income Tax, Value Added Tax, Taxation
Citation
Kate Turabia