The Moderating Effect of Tax Knowledge on the Relationship between Tax Rates and Tax Compliance of MSMES in Nigeria

Authors

  • Abdulhamid Ellawule Department of Accounting, Abubakar Tafawa Balewa University, Bauchi, Nigeria
  • Yusuf Maiwada Bashir Department of Accounting, Abubakar Tafawa Balewa University, Bauchi, Nigeria
  • Bala Sulaiman Dalhat Department of Accounting, Abubakar Tafawa Balewa University, Bauchi, Nigeria
  • Naziru Suleiman Department of Accounting, Abubakar Tafawa Balewa University, Bauchi, Nigeria

DOI:

https://doi.org/10.33003/fujafr-2024.v2i1.81.118-133

Keywords:

Tax Compliance, Tax Rates, Tax Knowledge, MSMEs, Nigeria

Abstract

Findings from prior studies have confirmed the inconsistencies and weak relationship that exists between tax rates and tax compliance. This study, therefore, tested the strength of the relationship between tax rates and tax compliance of MSMEs by introducing tax knowledge as the moderating variable. From 500 questionnaires administered, 325 were collected and from data cleansing 304 respondents were tested. Stratified and proportional sampling techniques were used in selecting the samples. The study found that tax knowledge moderated the relationship that exists between the tax rates and tax compliance of MSMEs in Nigeria. Also, the study found that tax rates and tax knowledge have a significant effect on the tax compliance of MSMEs in Nigeria. Tax literacy is important in improving the basic tax education of the citizens and trust in government. The study, therefore, recommended that the government should include taxation in the curriculum of elementary classes in Nigeria.

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29-04-2024

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Vol. 2 No. 1 (2024): March 31, 2024

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How to Cite

Ellawule, A., Bashir, Y. M., Dalhat, B. S., & Suleiman, N. (2024). The Moderating Effect of Tax Knowledge on the Relationship between Tax Rates and Tax Compliance of MSMES in Nigeria . FUDMA Journal of Accounting and Finance Research [FUJAFR], 2(1), 118-133. https://doi.org/10.33003/fujafr-2024.v2i1.81.118-133

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