Tax Determinants and Sustainable Economic Growth of MSMEs in South – South, Nigeria (Published)
This study investigated the influence of tax determinants on sustainable economic growth of micro, small and medium enterprises (MSMEs) in South-South, Nigeria. A cross sectional survey design was conducted on a sample of micro, small and medium enterprises (MSMEs) in South-South, Nigeria. The study anchored on the fiscal exchange theory. Primary data was collected using a questionnaire with a five-point Likert scale. The sample was 535 owners of micro, small and medium enterprises (MSMEs) taxpayers were purposively selected. The data collected was presented with the use of descriptive statistics, while bivariate and multivariate analysis was used in the estimation of the regression model developed for the study. The results suggested that tax knowledge positively and significantly influenced sustainable economic growth among MSMEs in south-south Nigeria; tax compliance cost positively and significantly influenced sustainable economic growth among MSMEs in south-south Nigeria; tax awareness has no positive and significant impact on sustainable economic growth among MSMEs in south-south Nigeria; taxpayers’ perception on accountability positively but not significantly influenced sustainable economic growth among MSMEs in south-south Nigeria and tax rate positively and significantly influenced sustainable economic growth among MSMEs in south-south Nigeria. On the basis of the findings, the study concluded that tax determinants influence the level of sustainable economic growth of micro, small and medium enterprises in South-South Nigeria. The study recommended amongst others that government should continuously invest on tax education both at the basic and secondary levels of education. This can be done by putting in place tax clubs in different schools so that as learners get to the taxpaying brackets they are fully aware of tax responsibilities as well as improve tax information thereby simplifying tax procedures for higher revenue generation for sustainable economic growth.
Citation: Appah, E. and Duoduo, G. (2023) Tax Determinants and Sustainable Economic Growth of MSMEs in South – South, Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.11, No. 4, pp.15-46
Keywords: Tax Rate, sustainable economic growth, tax awareness, tax knowledge
TAX RATE AND TAX COMPLIANCE IN AFRICA (Published)
The paper examines the correlation as well as the effect of tax rate on tax compliance in Africa using cross-country data. The study used all the African countries as population, upon which sample were selected using multi-stage approach. Data was analyzed using SPSS version 19.The findings showed that there is significant negative correlation between tax rate and tax compliance and tax rate has a negative effect on tax compliance. Thus, it is recommended that since average tax rate is 29.1985% in Africa, countries with tax rates above average that are experiencing noncompliance should reduce their tax rate to the mean tax rate in Africa. It is further recommended that future researchers on the subject should consider the increase in the sample size and observation years as data becomes available so as to increase the robustness of findings.
Keywords: Compliance, Evasion, Noncompliance, Tax Rate