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


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.


Tax Compliance, GDP, SMES, Multiple Tax

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