TAX SERVICE QUALITY AND TAX COMPLIANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES IN BAYELSA STATE

Abstract

The purpose of this study is to examine the relationship between tax service quality and tax compliance in Nigeria. Three research questions and three hypotheses were formulated in line with the objectives of the study. The population used in this study is forty-eight thousand seven hundred and eighty-eight (48,788) micro, small, and medium scale enterprise in Yenagoa, Bayelsa State. The Taro Yamane sampling technique was used to draw a sample of 8299 respondents. The instrument for data collection was a closedended
questionnaire with a reliability index of .78. Descriptive and simple regression technique was used in analyzing the data collected from the participants. The findings of the study indicated that tax service responsiveness, tax service reliability, and tax service accuracy had a positive and significant relationship with tax compliance. The study concluded that tax service quality is significantly related to tax
compliance. In view of the findings, it was recommended that continuous awareness programs should be conducted to educate taxpayers on tax procedures, obligations, and benefits, which will further encourage voluntary compliance. Also, tax authorities should prioritize prompt and efficient service delivery by responding quickly to taxpayers’ inquiries, complaints, and requests, thereby improving communication channels and reducing delays in tax offices, which will encourage taxpayers to comply with their tax obligations on time.