Journal • CITN Journal

Editorial Board

Editor-in-Chief

Professor Rafiu Oyesola Salawu

Department of Management & Accounting, Faculty of Administration, Obafemi Awolowo University, Ile-Ife

Managing Editor

Professor Godwin Emmanuel Oyedokun

Department of Management & Accounting, Lead City University, Ibadan, Nigeria

Editorial Board Secretary

Mary-Fidelis Chidoziem Abiahu

Director, Research and Professional Standard, Chartered Institute of Taxation of Nigeria

Editorial Board Members

Professor Chinedum Nathaniel Nwezeaku

Federal University of Technology, Owerri

Professor John Adeoti

Nigeria Institute of Social and Economic Research (NISER), Ibadan

Professor Uche Jack-Osimiri

Faculty of Law, River State University, Port Harcourt

Professor Aruwa Suleiman Akwu-Odo Salihu

Nasarawa State University, Keffi Nasarawa State Nigeria

Dr. Eiya Ofiafoh Ofiafoh (Associate Professor)

Department of Accounting, University of Benin, Benin City, Nigeria

Dr. Stephen Chukwuemeka Mark Abani

MCSA Worldwide Projects Limited, Abuja, Nigeria

Dr. Kenny Adedapo Soyemi

Department of Accounting, Olabisi Onabanjo University, Ago Iwoye, Ogun State, Nigeria

Professor Joseph Uchenna Uwaleke

Department of Banking & Finance, Nasarawa State University, Keffi Nasarawa State, Nigeria

Barrister Chukwuemeka Eze

Faculty of Law, Nasarawa State University, Keffi Nasarawa State, Nigeria

Mr. Simon Nwanmaghyi Kato

Federal Inland Revenue Service, Chairman’s Office, Abuja, Nigeria

TAX REFORM, DIGITALIZATION, AND TAX COMPLIANCE AMONG SMALL AND MEDIUM ENTERPRISES IN NIGERIA: A CASE STUDY OF ONDO STATE

Description

TAX REFORM, DIGITALIZATION, AND TAX COMPLIANCE AMONG SMALL AND MEDIUM ENTERPRISES IN NIGERIA: A CASE STUDY OF ONDO STATE

Authors

OLOGUN Olubunmi Veronica and OLORUNTOBA Sunday Rufus

Abstract

Effective tax compliance is crucial for improved economic growth and development. The increasing focus on taxes has led to tax reform and digitalization throughout the Nigerian system. This study, therefore, examined the effect of tax reform proxied by value-added tax reform, online tax payment platforms (OTPP), integrated tax administration systems (ITAS), and digitalization on tax compliance among Small and Medium Enterprises in Ondo State, Nigeria. This study employed the survey research design using primary data. The study population is comprised of seven thousand eight hundred ninety-nine (7899) registered SMEs across the eighteen (18) local government areas in Ondo state as of 2023 (SMEDAN, 2023). Questionnaires were administered to a sample of three hundred and eighty SMEs obtained using the Taro Yamane Formula. The demographic information was analyzed with frequency distribution, and the ordinary least square regression method was used to examine the relationship between the variables and tax compliance using E-view 13. The findings revealed that the variables of value-added tax reform, online tax payment platforms (OTPP), and integrated tax administration systems (ITAS) were statistically significant at 1%. The study, therefore, concluded that value-added tax reform, online tax payment platforms, and integrated tax administration systems positively and significantly affect the tax compliance of SMEs in Ondo State. The study recommends that for improved tax compliance among SMEs in Ondo State, SME Managers should incorporate value-added tax reform into their business strategy since it impacts their businesses and benefits tax compliance. Also, the government should further improve and expand online tax payment services to enhance tax compliance. Similarly, at all levels, the government should invest further in improving and expanding the integrated tax administration system through the relevant tax authorities.

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