TAXPAYERS SERVICE DELIVERY AND VOLUNTARY TAX COMPLIANCE

Abstract

Improving voluntary compliance of taxpayers is a major concern for governments all over the world. In Nigeria, government has employed certain tools in form of service delivery, in order to achieve voluntary compliance among taxpayers. This paper therefore investigated the taxpayers’ service delivery and voluntary tax compliance among small and medium scale enterprises (SMEs) in Ondo State, Nigeria.The study employs the survey research design through the use of primary data source by the distribution of a likert-scale questionnaire to respondents. The tax population consist 355,222 formal sector using taxpayers in Ondo State civil service. A survey of 100 copies questionnaire was distributed to the formal sector. The findings of the paper showed a negative correlation between e-tax filling and voluntary tax compliance of SMEs in the study area. The findings also showed that there is positive correlation between self-assessment tax system and voluntary tax compliance of SMEs in the study area. The findings of the paper further revealed a positive correlation between tax education and voluntary tax compliance of SMEs in the study area. The paper therefore recommended that since the SMEs have little capital strength, a bearable amount of tax should be levied on them by the government, and that tax incentive, as well as tax exceptions should be given to them in order to reduce non-compliance of SMEs in Nigeria.