Tax Administration Strategies and Tax Compliance of Small and Medium Enterprises: Evidence from Kwara State Internal Revenue Service

Abstract

Despite the vibrancy of state internal revenue service in Nigeria, noncompliance of SMEs to various tax administration strategies seems to have adverse effect on the level of tax revenue generation. The study used survey research design.720 SMEs owners were obtained as population for this study. Out of this population, sample size of 257 SMEs was scientifically selected. Study used questionnaire which is a primary source of data and was analyzed using multiple regression analysis to identify the significant and relationship between tax administration strategies and SMEs tax compliance. The findings revealed that tax education strategy and tax enforcement strategy has significant impact on tax compliance of SMEs in Kwara State. Base on the findings, the study recommended that; Kwara State Internal Revenue Service’s should continue the provision of platforms such as human capital training; tax clinic; tax advocacy desk and publicity should be made available to properly educate SMEs on tax-related issues so as to increase the level of tax compliance. The study contributes to the current body of information about tax education strategy and tax enforcement strategy i.e., tax penalties by offering further apprehension into how tax administration strategies impact tax compliance.