Assessing SMEs tax non-compliance behaviour in Sub-Saharan Africa (SSA): An insight from Nigeria

Abstract

The existing studies on determinants of small and medium enterprises (SMEs) tax compliance behaviour in Sub-Saharan Africa have been criticised on account of limited study scope which compromises generalisation and poor theorisation that have little or no support for the research questions of such studies. The current study is rooted in behavioural economics theory and elicits information from 392 participants from all geopolitical zones of Nigeria using paper-and-pencil survey instruments. The study's findings reveal that tax system complexity, tax deterrence sanction, tax noncompliance opportunity, tax information and tax attitude and perception are important determinants of tax compliance behaviour, while tax rate and tax compliance cost may not necessarily exert significant influence. The overall conclusion from the study reveals that certain economic and behavioural factors are effective in either encouraging or discouraging tax compliance behaviour. The study also reveals tax information to be one of the most significant drivers of tax compliance; however, little or nothing is known of this construct in the existing literature. The theoretical and policy implications of the study are discussed and suggestions for future studies are offered.

Assessing Tax Compliance Behavior Among Romanian Taxpayers: An Empirical Case Study

“…In the past few decades, tax researchers have increased their efforts to better understand issues such as tax compliance behavior, tax morale, and tax evasion. Their findings support the theory of behavioral economics as a theoretical framework (Vincent, 2021). According to this line of research, various economic and behavioral factors affect tax compliance decisions.…”

“…According to this line of research, various economic and behavioral factors affect tax compliance decisions. The economic components of behavioral economics theory highlight the taxpayers’ predisposition toward non-compliance when the estimated gains outweigh the costs (Vincent, 2021). Coercive measures may be used as tools for driving taxpayers to exercise compliant behavior.…”

Tax Payment and the Performance of SMEs: A Longitudinal Analysis on EU Countries

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“…Timothy and Abbas (2021) [24], considering a sample of Indonesian SMEs, found that SMEs' tax compliance is positively related to their trust in public authorities but also the level of tax morality and their perception of justice. Considering SMEs from Nigeria, Vincent (2021) [25] revealed that several economic and behavioural factors determine tax compliance behaviour and also that tax information can be seen as one of the main drivers of tax compliance. Further, Wadesango et al (2020) [26] analysed the relationship between tax amnesty and tax compliance among SMEs in Zimbabwe and obtained an inverse relation.…”

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