Background of the Study
Tax compliance refers to the extent to which taxpayers adhere to tax laws and regulations. For SMEs in the Abuja Municipal Area Council (AMAC), tax compliance is essential for maintaining legitimacy and avoiding penalties. However, compliance levels among SMEs in AMAC remain low due to a lack of awareness, complicated tax processes, and mistrust in the use of tax revenues (Abubakar & Umar, 2024).
Non-compliance not only deprives the government of revenue but also exposes SMEs to legal and financial risks. Factors influencing compliance levels include tax knowledge, perception of fairness, and the efficiency of the tax collection system. Studies suggest that simplifying tax processes and increasing transparency can significantly improve compliance rates (Eze & Adewale, 2023).
Statement of the Problem
Despite the importance of tax compliance, SMEs in AMAC continue to exhibit low compliance levels. Challenges such as inadequate tax education, poor administration, and distrust in government use of taxes exacerbate the problem. While broader studies on tax compliance exist, specific insights into the challenges faced by SMEs in AMAC remain scarce.
Objectives of the Study
To assess the current tax compliance levels among SMEs in AMAC.
To identify factors affecting tax compliance among SMEs.
To propose strategies for improving tax compliance in AMAC.
Research Questions
What are the current tax compliance levels among SMEs in AMAC?
What factors influence tax compliance among SMEs in AMAC?
What strategies can enhance tax compliance in AMAC?
Research Hypotheses
H₀: Tax knowledge does not significantly influence compliance levels among SMEs in AMAC.
H₀: Perception of tax fairness does not significantly affect compliance levels.
H₀: Simplifying tax processes does not significantly improve compliance rates.
Scope and Limitations of the Study
This study focuses on SMEs within the Abuja Municipal Area Council, exploring their compliance levels and influencing factors. The study excludes large enterprises and SMEs outside AMAC. Limitations include the potential difficulty in obtaining accurate self-reported compliance data.
Definitions of Terms
Tax Compliance: The adherence of taxpayers to tax laws and regulations.
AMAC: Abuja Municipal Area Council, a key administrative region in Nigeria's capital.
Perception of Tax Fairness: Taxpayers' view of whether the tax system is equitable and just.
Abstract: The impact of digital literacy on adult learning outcomes is crucial in the contemporary educational landscape where digital skills...
ABSTRACT
The study is geared towards exploring some predicting variables of alcohol use among police officers in Nigeria...
Huge amount of hydrocarbon in place is left unrecovered. Integrated reservoir management, inaddition to the u...
ABSTRACT
Phosphorus status of three wetland types in Akwa Ibom State was investigated. The aim was to find out phosphoru...
Background of the Study
Sustainable farming practices are essential for ensuring food security, preserving natural resou...
ABSTRACT
What if the transportation section, stagnant, almost every section of any given economy will not perform well as expected. Te im...
ABSTRACT
Corrupt practices among Female Civil Servants (FCS) seem to be increasing despite the establishment of Anti-Corruption and Trans...
ABSTRACT: The influence of early childhood education on memory retention i...
ABSTRACT
The child abuse menace is as old as the birth of the first child, until very recently child maltreatment has ne...
Background of the Study
The Internet of Things (IoT) is transforming industries by enabling the seamless connection of devi...