LOW TAX TO GDP RATIO, A PARADOX OF MULTIPLE TAXATION ON SMES IN LAGOS STATE. A STUDY OF ASSOCIATION OF MASTER BAKER AND CATERERS OF NIGERIA, LAGOS BRANCH

Rahmon Olawale Saka (PhD), Rabiu Onalapo Olowo (PhD), Abiola M.A. Tonade (PhD)

Abstract


This research study examined the low tax to GDP ratio, a paradox of multiple taxations among the Master Bakers Association in Lagos State. One of the reasons for this study is to investigate the link between tax and GDP in Lagos and to identify the variables that influenced the relationship. In order to achieve this, survey research design was adopted to selected SMEs in Lagos State. SMEs were identified as respondents while samples for the study were randomly selected. Data extracted via the questionnaire were analyzed using regression analysis with the aid of statistical package for social science (SPSS) 2.0 version software. Hypotheses were formulated and tested. Results revealed that there is a correlation between tax remittance and tax compliance behaviour of SMEs operators. The recording system of SMEs also influences the rate of tax remittance. Inability to locate SMEs significantly affect their tax compliance level, and multiple taxes affect SMEs behaviour towards tax compliance. Government should engage the SMEs operators by educating them on the need to pay tax and ensure that SMEs are compelled to register their businesses so that they can be visible to government, and multiple taxations should be resolved in a way that SMEs have more confidence in the system.


Keywords


Tax Compliance, GDP, SMES, Multiple Tax

Full Text:

PDF

References


Abdulrazaq, M. T. (2012). Introduction to VAT in Nigeria 2nd Edition, Ababa Press Ltd, Ibadan Value Added Tax Act no 102 1993

Abiola, S. (2012) Multiplicity of taxes in Nigeria: Issues problems and solutions. International Journal of Business and Social Sciences, 3(17), 229.

Adum, S. O (2018) Burning issues in Nigeria tax system and tax reforms on revenue generation: Evidence from Rivers state. International Journal of Finance and Accounting, 7(2), 36-48.

Akinboade, O. A.(2015). Correlates of Tax Compliance of Small and Medium Size Businesses in Cameroon. Managing Global Transitions, 13 (4), 389–413

Anyanwu J.C (1997). Nigeria public finance. Joanee Educational Publishers Ltd., Onitsha

Bhatia, H.L (2009). Public finance. New Delhi: Vikas Publishing House PVT Ltd.

Bismark, A. Oppong, A. Abruquah, L.A & Ashalley, E. (2016) Informal sector tax compliance issues and the causality nexus between taxation and economic growth: Empirical evidence from Ghana. Modern Economy, 7(12), 1478-1497

Brautigam, D., O.H. Fjeldstad, & M. Moore (eds.) (2008). Taxation and State-Building in Developing Countries: Capacity and Consent. Cambridge: Cambridge University Press.

CBN Annual accounts and reports: Various issues

Cooper, D. and Schindler, P. (2011) Business Research Methods. 11th Edition, McGraw Hill, Boston.

Creswell, John W. (2008) Educational research :planning, conducting, and evaluating quantitative and qualitative research Upper Saddle River, N.J. : Pearson/Merrill Prentice Hall,

Daniel, C.O. (2019). Effect Of Multiple Taxation On Small/Medium Enterprises In Nigeria. International Journal of Advanced Research and Publications. 3(4). Pp. 26-31

Ebere,U.O Eunice, C.O & Chimaobi,V.O (2016) Effect of multiple taxation on investment in small and medium enterprises in Enugu State, Nigeria. International Journal Economics and Management Engineering 10(1), 378-385

Ebiringa, & Emeh (2012). Analysis of Tax Formation and Impact on Economic Growth in Nigeria. International Journal of Accounting and Financial Reporting

Faloyin, S. K (2015) Unveiling the potentials of entrepreneurship Contemporary studies 68(6), 273-284

Fasch, K. U (2013) Growth matrix of an economy. Journal of Entrepreneurship Development 5(4), 10-16

Fischer, C. M., M. Wartick, M., & M. Mark. (1992). ‘Detection Probability and Tax Compliance: A Review of the Literature.’ Journal of Accounting Literature 11 (2), 1–46.

Goolsbee A (2004). The impact of the corporate income tax: evidence from state organizational form data. Journal of Public Economics 88(11):2283-2299.

Gravelle J (2013). Corporate tax incidence: review of general equilibrium estimates and analysis. National Tax Journal 66(1):185214. Available at: https://www.ntanet.org/NTJ/66/1/ntj-v66n01p185214-corporate-tax-incidence-review.pdf

Izedonmi & Okunbor (2010). Empirical examination of value added tax to the development of the Nigeria economy .Retrieved from www.iiste.org.

James, S., & Alley. C, (2000). ‘Tax Compliance, Self-Assessment and Tax Administration.’ Journal of Finance and Management in Public Services 2 (2), 27–42.

Keen M (2013). Taxation and development: Critical issues in taxation and development. Cambridge: MIT Press.

Lawal, K. S & Aduku, N. R (2016) Strategies for wooing investors in Nigeria. Paper Presented at entrepreneurship conference Federal Polytechnic Idah, May 8th – 10th.

Lawal, M. & Abdullahi, I.I. (2018). Impact of Financial Record Keeping on the Growth and Survival of Small and Medium Enterprises (SMEs) in Zaria. Umaru Musa Yar’Adua University, Kastina Journal of Economics and Development (UJED). 1(2). Pp. 293-301

Lederman, L., (2018). "Does Enforcement Reduce Voluntary Tax Compliance?". Articles by Maurer Faculty. 2732. https://www.repository.law.indiana.edu/facpub/2732. Pg, 623-694

Massey, C., & P. Quin. (2001). ‘Final Report to the Ministerial Panel on Business Compliance Costs: Review of Responses from Business.’ New Zealand Centre for sme Research, Palmerston North.

Mohamad, M. & Mohd-Asri, M.A (2017). Examining the factors of tax non-compliance: a case study of small and medium enterprises in metro area. SHS Web of Conferences 36, DOI: 10.1051/shsconf/2017360001 ICGA

Njoku, P.O (2009) Public Finance. Sources, Administration and Management. Enugu: El’demak Publishers.

Nwamuo, C. (2017). Multiple Taxation and the Operations of Business Enterprises in Aba Metropolis. Pyrex Journal of Business and Finance Management Research. 3 (6) pp. 132-138.

Oboh, C.S., Yeye, O. & Isa, E.F. (2013). Multiple Tax Practices and Taxpayers’ Non-compliance Attitude in Nigeria. International Research Journal of Finance and Economics. 13(103). Pp. 151-161.

Obongo M. B., Memba, F.S. & Oluoch O.(2018) Influence of Tax Knowledge and Awareness on Tax Compliance Among Investors in the Export Processing Zones in Kenya. International Journal of scientific research and management. 6(10), 728-733

Ojo. S. (2009). Fundamental principles of Nigeria taxation (2nd edition): Sagribra Tax Publication: Lagos

Ojochogwu W.A. & Stephen, A. O. (2012) Factors that affect Tax Compliance among Small and Medium Enterprises (SMEs) in North Central Nigeria. International Journal of Business and Management. 7(12), 87-96

Olaoye, C.O. & Ekundayo, A.T. (2019). Effects of Tax Audit on Tax Compliance and Remittance on Tax Revenue in Ekiti State. Open Journal of Accounting 19(8). Pp 1-17.

Oloyede, F.L., Kupoluyi, A.K., Oyedokun, G.E. & Benjamin, R.D. (2017). Informal Sector Tax Administration and Monitoring in Nigeria. Journal of Taxation and Economic Development. 16(2). Pp. 16-24.

Phelan, C. and Julie, W. (2006) Exploring reliability in academic assessment. Reliability and validity.

Saunders, M., Lewis, P. and Thornhill, A. (2007) Research Methods for Business Students. 4th Edition, Financial Times Prentice Hall, Edinburgh Gate, Harlow.

Segun, I. A. & Osazee, G. I. (2018) Economica Journal 14 (1), 99 – 111.

Soyode. L & Kajola S. O (2006). Taxation principles and practice in Nigeria; Silicon Publishing Company: Ibadan

UNCTAD (2003). The financial grants to encourage investment and employment in non-traditional sectors. New York: UNCATAD.

Yamane, T. (1967). Statistics: An Introductory Analysis. (2nd Ed.) New York, NY: Harper and Row.

Zee H.H, Stotsky J.G, & Ley E (2002). Tax incentives for business investment: A primer for policy makers in developing countries. World Development 30(9):1497-1516.


Refbacks

  • There are currently no refbacks.


 

 

 

 

ISSN (Print): 2276-8645

 

 

   

 

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.