TAX AUTHORITY SERVICE QUALITY AND TAX COMPLIANCE BEHAVIOUR AMONG SMALL ENTERPRISES INCROSS RIVER STATE, NIGERIA
DOI:
https://doi.org/10.67199/ry0hz762Keywords:
Tax compliance, service quality, empathy, assurance, small enterprisesAbstract
This study investigates the relationship between tax authority service quality and voluntary tax compliance behaviour of small enterprises in Cross River State, Nigeria. The study is anchored on the Fiscal Exchange Theory, which conceptualizes taxation as a reciprocal relationship between taxpayers and the state. A cross-sectional survey design was adopted, and data were collected from 298 registered small enterprises using a structured questionnaire. Ordered logit and probit regression techniques were employed to analyze the data. The findings reveal that empathy and assurance of tax officials have statistically significant positive effects on voluntary tax compliance behaviour, while responsiveness and reliability, although positive, do not exert significant influence. The results suggest that relational and trust-based dimensions of tax administration are more critical for fostering voluntary compliance among small enterprises than procedural efficiency alone. The study contributes to the tax compliance literature by providing sub-national empirical evidence from Nigeria and highlighting the importance of taxpayer-centric service delivery. Policy implications emphasize the need for tax authorities to strengthen empathy, professionalism, transparency, and communication in order to enhance voluntary tax compliance and achieve sustainable domestic revenue mobilization.
Keywords: Tax compliance, service quality, empathy, assurance, small enterprises.
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