Tax Knowledge and Voluntary Tax Compliance

ABSTRACT

This study investigated the impact of tax knowledge on voluntary tax compliance among small and medium scale enterprises in the informal sector in Benin city. The cross-sectional and correlational research design were adopted for this study. The data used in the study were obtained from self-administered questionnaires. This study employed the regression analysis using the ordinary least square regression technique. Diagnostic tests were also carried out to confirm stability and certify the integrity of the data. The findings of the regression analysis revealed that Rights of Taxpayers, Tax Education, Tax Penalties, and Tax Credits have a positive relationship with a significant impact on Voluntary Tax Compliance among Small and Medium Scale Enterprises in the Informal Sector in Benin City. However, Tax Complexity was found to have a negative relationship with Voluntary Tax Compliance.