Page 55 - CITN 2017 Journal
P. 55

IMPACT OF TAXATION ON THE

          GROWTH OF SMALL AND MEDIUM


                     ENTERPRISES IN NIGERIA



                                               By

                                      Ikani Stephen OCHENI
                   Department of Accounting, Kogi State University, Anyigba, Nigeria















         ABSTRACT


         This study examined the impact of taxation on the performance of small and mediumscale
         enterprises (SMEs) in Nigerian. The quest for this study came as a result of the  present high
         mortality  rate  of  SMEs  and  also  considering  the  fact  that  SMEs  serve  as  source  of
         employment  generation;  innovation,  competition,  and  economic  dynamism  in  the
         development of Nigerian Economy.  The quest for economic development in Nigeria and
         the attendant improvement in service delivery to the populace has taken its toll on the
         economic environment. Primary data was collected with the use of questionnaire and data
         were analyzed using descriptive statistics method, correlation matrix and binary logit. The
         study hypotheses were also validated and tested using z-test statistics to establish p < 0.05
         significant differences. The research hypotheses for this study were tested using z-test
         statistics to establish p < 0.05 significant differences. The analysis revealed that there is no
         significant difference in the mean opinion scores of managers and accountants on the best
         tax policy that encourages tax compliance by SMEs in Nigeria. It was also revealed that
         there is no significant difference in the mean opinion scores of managers and accountants
         of the implications of tax policy on SMEs growth. The paper therefore recommended that
         the rate of tax incentives and exemptions  should be increased by government and  should
         promulgate a policy that will help to avoid illegal taxes, such as community levy, boys or
         youth levy and as well as association or union levy. There should be consistency in tax
         policy that will cushion the effects of factors that militate against the expansion of SMEs
         in relation to their ability to pay taxes by government.
         Key words: Nigeria, Small and Medium Scale Enterprises, Tax policy
         JEL CLASSIFICATION:  H20,  H25,  M21






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