TAXPAYERS’ MOTIVATION AND COMPLIANCE BEHAVIOUR OF SMALL AND MEDIUM ENTERPRISES IN AKWA IBOM STATE

Abstract

This study examined taxpayers’ motivation and tax compliance behaviour of SMEs in Akwa-Ibom State. The research adopted descriptive survey research design. The population for this study was two thousand seven hundred and eighty-four small and medium enterprises in Akwa-Ibom State and a sample size of three hundred and fifty staff of small and medium enterprises in Akwa-Ibom State.  The study used questionnaire instrument, and data were analysed in the Statistical Package for Social Sciences (SPSS) Version 22. The research questions were analysed using mean and standard deviation and hypotheses were tested using Simple bivariate regression analysis at a significance level of 0.05.  The results of the findings showed that there is a positive significant influence of self-assessment, and tax incentives on compliance behaviour of SMEs in Akwa-Ibom State. It was further revealed that there was positive and significant combined influence of taxpayers’ motivation measures on compliance behaviour of SMEs in Akwa-Ibom State. Therefore, the study concludes that there is a strong positive relationship between taxpayers’ motivation measures and tax compliance behaviour of SMEs in Akwa-Ibom State. The study recommends that Small and Medium Scale Enterprises should adopt and comply with the tax laws provisions in order to claim the available Tax incentives in order to trigger capacity for improved performance. Relevant tax authority should boost small and Medium Scale Enterprises compliance motivation with adequate tax incentives and policies including self-assessment as this is one of the major drivers in increasing Tax revenue. The Small and Medium Scale Enterprises should continuously improve on tax filings and returns through proper record keeping, as this will go a long way in enhancing the firms’ compliance to tax laws and policies. The tax authorities should organize seminars, workshop and trainings of taxpayers periodically on tax compliance. This will encourage self-compliance. Tax education is recommended to further enlighten people about the need to fulfil tax obligations even right from the schools.