Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

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

Adigwe, P. D. (2025). The Impact of MSME Characteristics on Enhancing Voluntary Tax Compliance in Bayelsa State, Nigeria. FUDMA Journal of Accounting and Finance Research [FUJAFR], 3(2), 87-95. Alabi, A. W., & Akintoye, I. R. (2024). Impact of finance act 2022 on tax compliance among SMEs in Nigeria: A primary research study. Asian Journal of Social Sciences and Management Studies, 11(3), 41- Bello, U., Bayu, U. F., Adamu, N. S., Ogboji, O. A., Abubakar, M. A., Lass, R., ... & John, J. (2024). Tax Knowledge and Tax Compliance of Micro and Small Enterprises in Gombe State, Nigeria: Moderating Effect Of Record Keeping Practice. Kashere Journal of Management Sciences, 7(1). Ebimobowei, A. (2023). Tax education, fairness and penalty on compliance behavior of micro, small and medium enterprises in Bayelsa State, Nigeria. African Journal of Social Sciences and Humanities Research, 6(1), 123-149. Ellawule, A., Bashir, Y. M., Dalhat, B. S., & Suleiman, N. (2024). The Moderating Effect of Tax Knowledge on the Relationship between Tax Rates and Tax Compliance of MSMES in Nigeria. FUDMA Journal of Accounting and Finance Research [FUJAFR], 2(1), 118-133. Ellawule, A., Bashir, Y. M., Dalhat, B. S., & Suleiman, N. (2024). Effect of tax incentives on MSMEs’ tax compliance in Nigeria. Journal of Business Management and Accounting (JBMA), 14(2), 339-365. Eneh, O. M. R., Onwuchekwa, J. C., & Okoye, N. J. (2022). Effect of Tax Complexity on Tax Compliance of Small and Medium Scale Enterprises in Bayelsa State. International Journal of Advanced Academic Research, 8(2), 72-89. Fagbemi, T. O., Uadiale, O. M., & Noah, A. O. (2019). The influence of tax knowledge on tax compliance behaviour of taxpayers in Nigeria. Journal of Accounting and Taxation, 11(3), 45–52. https://doi.org/10.5897/JAT2018.0316 Garuba, A. O., & Eichie, D. (2022). Employment status, gender and tax compliance behaviour of informal sector operators in Nigeria. Accounting and taxation review, 6(2), 87-104. Gichohi, P. K. O. (2024). Tax Education and Tax Compliance of Manufacturing Small And Medium Enterprises in Nairobi City County, Kenya (Doctoral dissertation, Kenyatta University). Ikosimi, B. (2023). Tax Enforcement Mechanism: A Veritable Tool For Tax Compliance. FUO Journal of Management Sciences, 7(Special), 30-40. Lestari, D. N. L., & Fuadah, L. L. (2025). Systematic Literature Review: The Influence Of Tax Understanding, Taxpayer Awareness, And Tax Socialization On Tax Compliance Of Msmes In Indonesia. Journal of Management, Economic, and Accounting, 4(1), 203-212. Ndekwa, A. G. (2020). Tax knowledge and tax compliance among small and medium enterprises in Tanzania. International Journal of Business, Economics and Law, 21(5), 50–59. Njihia, M. I., Tenai, J., & Biamwera, B. (2025). Effect of Tax Knowledge on Pay as You Earn (PAYE) Tax Compliance Among Micro, Small, and Medium Enterprises (MSMEs) in Ruiru Town. Journal of Finance and Accounting, 5(5), 67-78. Obutor, I., & Iyere, S. (2022). Tax Payers Education and Tax Compliance of the Informal Sector in Bayelsa State. FUO Journal of Management Sciences, 6(1), 65-81. Oladiran, A. M. O., Festus, A. F., & Anaekenwa, A. T. (2024). Tax Justice and Tax Compliance: Empirical Evidence from South West Nigeria. Journal of Management World, 2024(4), 159-171. Olaeyea, S. A., & Busari, T. A. (2021). Implications of Tax Audit and Investigation on Taxpayers’ Compliance in Nigeria. International Journal of Innovation, Creativity, and Change, 15(3), 4-21. Popoola, D. J. (2022). Determinants of Tax Compliance Behaviour Among Small and Medium Enterprises in Kwara State (Master's thesis, Kwara State University (Nigeria)). Tonye, O., & Temitope, A. (2023). Tax Authority Effort in the Prevention and Detection of Tax Fraud in Nigeria. BW Academic Journal, 9-9.52. Wosowei, C., & Peter, M. (2024). An Assessment Of Factors Influencing The Development Of Small And Medium Enterprises In Bayelsa State.

More Articles from INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH

Building National Analytics Capacity: Advances and Future Pathways

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Root-Cause and Thematic Analysis for Major Incident Management: A Review

Author: Ifeanyichukwu Jeffrey Okwesa, Uchechi Mary-Linda Unamma, Uzoamaka Iwuanyanwu

Data-Quality and Single-Source-Of-Truth Frameworks for Inter- Agency Reporting: A Review

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Human-In-The-Loop Decision Systems: Advances and Future Directions

Author: Funmilayo Ashore-Onisemo, Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey, Okwesa,

Roles of Oil Subsidy Removal on Transportation Cost and Water Factory in Cross River South, Nigeria

Author: Onwuzurike Peter Tobechi, Owoh Akwa Owoh, Unoh Grace Inyang, Umaru Musa