Tax compliance is a critical issue in modern societies, as it ensures that governments have sufficient resources to fund public goods and services. Non-compliance with tax regulations can lead to significant revenue losses and undermine the provision of essential public services. This study adopted quantitative research methodology based on questionnaire …
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Tax compliance is a critical issue in modern societies, as it ensures that governments have sufficient resources to fund public goods and services. Non-compliance with tax regulations can lead to significant revenue losses and undermine the provision of essential public services. This study adopted quantitative research methodology based on questionnaire which were adopted from the literature. The study used primary sources of data, utilizing questionnaires as the research instrument. The simple random sampling was used to select MSMEs for the study. The study used both descriptive and inferential data analysis for the study. In all, 215 MSMEs were involved in the study. The descriptive analysis made use of tables and figures to present findings of respondents and percentages. The results indicated that taxpayer attitude explained approximately 25% of the variance in tax compliance intention. Additionally, tax fairness (TF) showed the strongest positive correlation with tax compliance (TC), followed by trust in government (TG), and tax control (TCTRL). Components of subjective norm explained 51.9% of the variation in tax compliance intention. The findings revealed that perceived behavioural control significantly impacted tax compliance intention. Furthermore, the power of authority positively influenced tax compliance intention, whereas tax complexity negatively affected it. Conversely, risk assessment did not have a significant effect on tax compliance intention, and tax information also did not significantly impact tax compliance intention It is recommended that tax authorities pay attention to the subjective norm components of tax fairness and trust in government when seeking to improve tax compliance intention among MSMEs. Additionally, trust in government and tax control were also positively correlated with tax compliance intention, suggesting that building trust and providing effective tax control measures can further enhance compliance
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