MULTIPLE TAXATION, HIGH TAX RATE AND TAX COMPLIANCE: IMPLICATIONS FOR SMES’ GROWTH IN ZAMFARA STATE, NIGERIA

Abstract

The study examines if multiple taxation and high tax rate have significant influence on tax compliance among SMEs in Zamfara State. The study focused on Gusau, the state capital of Zamfara, with an estimated population of 682,700. Method of Sampling the Population is the Taro Yamane's sampling formula. The sample size of the study is 400 people who are small and medium business owners in Zamfara state, Nigeria. The study made use of multiple regression analysis, Anova, Coefficient, Collinearity Test in other to find the impact of high tax rate and multiple taxation among SMEs in Zamfara state. The study revealed that multiple tax system has significant influence on tax compliance. The study also revealed that high tax rate has negative significant influence on tax compliance among tax payers who are small business owners. The study therefore recommends that government should avoid high tax rate as this could have negative effect on tax compliance among SMEs in Zamfara State.