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Tax Knowledge and Tax Compliance Behavior of Small Business Owners in Bayelsa State

IHENYEN, Joel Confidence, CHINOMSO, Racheal Okundegbe, MARCUS, Rebecca, Bassey

Abstract

This study examined the relationship between small business owners' compliance behavior and their tax knowledge in Bayelsa State. According to SMEDAN (2017), the study used a survey research design and focused on 548,049 SMEs. Structured questionnaires were used to collect data, and a sample size of 400 respondents was determined by applying the Taro Yamane formula at a 5% significant level. While regression analysis assessed the stated hypothesis at a 5% significance level, descriptive statistics provided a summary of the responses. The results showed that tax knowledge and compliance were strongly positively correlated, and the null hypothesis was rejected since the regression coefficient (B = 5.420, t = 4.462, p = 0.000) was statistically significant. The study found that small business owners' compliance is significantly improved by having more tax knowledge. In order to promote voluntary compliance and improve revenue collection in Bayelsa State, it was suggested that tax authorities step up their sensitization campaigns, awareness campaigns, and training on tax obligations and available incentives.

Keywords

Tax knowledgeTax compliance behaviorSmall business

References

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