EFFECT OF TAX ADMINISTRATION EFFICIENCY ON TAX COMPLIANCE AMONG SMALL AND MEDIUM SCALE ENTERPRISES IN NORTH CENTRAL OF NIGERIA

LAMINO MUHAMMAD ABUBAKAR

doi:10.65922/3qd70m83

Authors

ABUBAKAR LAMINO MUHAMMAD Author

DOI:

https://doi.org/10.65922/3qd70m83

Abstract

This study investigated the Effect of Tax administration efficiency on Tax compliance among Small and Medium-sized Enterprises (SMEs) in North Central of Nigeria. The research focused on four key indicators of Tax administration efficiency: Electronic tax filing, Taxpayer education, Tax audit frequency, and Ease of registration, with Tax compliance as the Dependent variable. Employing a survey research design, the study targeted a population of 2,344 SMEs and analyzed responses from a final sample size of 375. Data were analyzed using multiple regression analysis. The findings revealed that all four Independent variables had positive and statistically significant effects on Tax compliance. Among them, Electronic tax filing and Tax audit frequency exerted the strongest influence, while Taxpayer education and Ease of registration also contributed meaningfully. The model explained 45.7% of the variance in Tax compliance, indicating a substantial influence of Tax administration efficiency. Based on these findings, the study recommends enhancing digital tax systems, expanding taxpayer education, conducting strategic audits, and simplifying registration processes to improve compliance rates among SMEs in the region.

Keywords: Electronic Tax Filing, Taxpayer Education, Tax Audit Frequency, and Ease of Registration, Tax Compliance.

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