Background of the Study
Tax education involves equipping taxpayers with the knowledge and skills needed to understand and fulfill their tax obligations. For SMEs in Kaduna State, tax education plays a crucial role in improving compliance levels and fostering a positive relationship between businesses and tax authorities (Aliyu & Musa, 2024).
Despite its importance, tax compliance among SMEs in Kaduna State remains low due to limited awareness of tax laws, the complexity of tax systems, and mistrust in government. Studies have shown that effective tax education programs can enhance compliance by addressing knowledge gaps and changing attitudes toward taxation (Bello & Adamu, 2025).
Statement of the Problem
Low tax compliance among SMEs in Kaduna State is largely attributed to inadequate tax education. This has led to widespread tax evasion, reduced government revenue, and financial penalties for SMEs. While tax authorities have initiated education programs, their effectiveness remains unclear due to poor implementation and limited reach.
Objectives of the Study
To assess the level of tax education among SMEs in Kaduna State.
To evaluate the relationship between tax education and compliance levels.
To propose strategies for improving tax education programs to enhance compliance.
Research Questions
What is the level of tax education among SMEs in Kaduna State?
How does tax education influence compliance levels among SMEs?
What strategies can improve tax education programs for SMEs?
Research Hypotheses
H₀: Tax education does not significantly influence compliance levels among SMEs in Kaduna State.
H₀: The level of tax education does not significantly impact SME tax behavior.
H₀: Improved tax education programs do not significantly enhance compliance.
Scope and Limitations of the Study
The study focuses on SMEs in Kaduna State and evaluates the impact of tax education on compliance. It excludes other states and large enterprises. Limitations include variability in education program implementation and difficulty in assessing behavioral changes.
Definitions of Terms
Tax Education: Programs designed to increase taxpayers' knowledge of tax laws and obligations.
Compliance: Adherence to tax laws and regulations.
Tax Behavior: The attitudes and practices of taxpayers regarding their tax obligations.
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