Tax Knowledge, Compliance Cost and Legal Framework as Predictors of Tax Compliance among Small Scale Enterprises in Oyo State
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Date
2023-12
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Lead City University
Abstract
The research was undertaken with the intention of determining the extent to which small scale enterprise in Oyo state are complying with the payment of required tax to the government. Sachet water factories were the focus. Simple descriptive research design, where questionnaire were administered on the staff of selected sachet water factories was adopted, the measurement variable used include compliance cost, legal framework, and tax knowledge while correlation adregression analysis was use to analyze the data collected. The result showed that at (P ≤ 0.05) level of significant and with correlation coefficient(r) = 0.00 there was strong positive significant relationship between tax compliance and legal framework of small scale enterprises in Oyo state, there was strong positive significant relationship between tax compliance and tax knowledge of small scale enterprises operators in Oyo state, also there was a moderate positive relationship between tax compliance and compliance cost of small scale enterprises operators in Oyo state. Regression analysis carried out showed R-square variation for the dependent variable that could be explained by the independent variables. A value greater than 0.5 shows that the model is effective enough to determine the relationship. In this research, the value is .802, which is 80%, this means 80% of compliance cost, and legal framework and tax knowledge can predict tax compliance of small scale enterprise in Oyo state. Base on the findings it was recommended that government should create and put into action comprehensive tax education programs designed especially for small sachet water businesses, also government Enhance coordination between tax authorities and pertinent regulatory organizations to strengthen enforcement procedures. Establish thorough monitoring programs to identify tax evasion tactics, and impose suitable fines and consequences on noncompliant companies to discourage tax evasion.
Keywords: Compliance, Compliance cost, Legal framework, Small scale enterprise, Sachet water factories, Tax knowledge
Word Count: 286
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Keywords
Compliance, Compliance cost, Legal framework, Small scale enterprise, Sachet water factories, Tax knowledge
Citation
Kate Turabian