IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 8 2024
DOI: 10.56201/jafm.v10.no8.2024.pg199.212

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The Effect of Tax Compliance Costs on Small Businesses in Ondo State, Nigeria

Dr. ADETULA, Samuel Lanrewaju OLEMIJA, Temidayo Lawrence

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Abstract

This study examined the influence of tax compliance cost on small businesses in Ondo State, Nigeria. The research looked at three different areas of complexity: tax simplicity, tax service quality, and tax penalties. The exploratory research design was used in this study. The study's target sample consisted of 95 Ondo State small and medium enterprises that are registered with the Ondo State Board of Internal Revenue. The study relied on primary data collected using a well- structured questionnaire. Regression analysis was used to look into the validity of the components in the proposed research model. The study used SPSS 26 version to estimate the regression equation model (OLS). The study's findings indicated that tax simplicity and service quality had a bigger impact on tax compliance than tax penalties. As a result, the research advises that any bottlenecks and complexity in the tax system be removed in order to make it simpler for SMEs to comply willingly. In addition, tax penalties should be increased, and tax authorities should guarantee that offenders comply with the required demands through the specified channels.

keywords:

Tax compliance, tax simplicity, tax service quality, tax penalties

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