TITLE:
Tax Knowledge, Penalties and Tax Compliance in Small and Medium Scale Enterprises in Nigeria
AUTHORS:
Adesina Olugoke Oladipupo, Uyioghosa Obazee
KEYWORDS:
Tax Compliance, Tax Knowledge, Tax Penalty
JOURNAL NAME:
iBusiness,
Vol.8 No.1,
March
2,
2016
ABSTRACT: The study investigated
the impacts of tax payers’ knowledge and penalties on tax compliance amongst
small and medium enterprises in Nigeria using a survey research design. The
data obtained from questionnaire were analyzed using the Ordinary Least Square
regression method. The results showed that tax knowledge had a
positive significant impact on tax compliance while tax penalty had
insignificant positive impact on tax compliance. Thus, the study shows that tax knowledge has a
higher tendency to promote tax compliance than tax penalty. Government should
therefore do everything possible to increase public knowledge on tax matters
and tax education should be included in school curricula at all times. Small
and medium scale business owners should also seek to advance their tax
knowledge and awareness for the mutual benefits of the governments and
taxpayers.