EFFECT OF TAX ADMINISTRATION EFFICIENCY ON TAX COMPLIANCE AMONG SMES IN ADAMAWA STATE, NIGERIA
Denis Basila, PhD and Ishaku Thomas, PhD
Volume 14 Issue 1
Abstract
This study examines the effect of tax administration efficiency on tax compliance among small and medium-sized enterprises (SMEs) in Adamawa State, Nigeria. The study adopts a cross-sectional survey design, using primary data collected from 320 SME operators across Yola, Mubi, and Jimeta. Tax administration efficiency was proxied by taxpayer education, audit effectiveness, service delivery, and tax system simplicity, while tax compliance was measured through filing accuracy, timely payment, and voluntary disclosure. Data were analyzed using multiple regression analysis. Findings reveal that taxpayer education, audit effectiveness, and service delivery have significant positive effects on tax compliance, while tax system complexity negatively affects compliance. The study concludes that efficient tax administration enhances compliance behavior among SMEs. It recommends that tax authorities strengthen taxpayer education programs, simplify tax procedures, and improve service delivery mechanisms. Keywords: Tax Compliance, SMEs, Tax Administration, Nigeria, Adamawa State
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