ABSTRACT
Tax is an important stream of revenue for government’s development projects. The importance of tax system as a major revenue source in a country is undeniable, these statistics have evidenced that tax revenues are one of main income sources for many governments throughout the world but to maximize tax collection and minimize tax evasion among taxpayers is difficult to achieve in practice. However, tax compliance among Small and Medium Enterprises (SMEs) is poor which may be due to certain characteristics such as age, gender, state of origin and level of tax literacy of the chief executive officers of the SMEs.
This research was a survey whose data is collected from fifty chief executive officers (CEOs) in Small and Medium Enterprises. After the data was collected, it was analyzed using percentage analysis, descriptive statistics then summarized and presented using statistical tool such as the Chi-Square.
From the findings, it was discovered there is a relationship between CEO’s characteristics and tax compliance behaviour of SMEs. The following were also part of findings of this work.
Age as a characteristic of CEOs affect tax compliance behaviour of SMEs while level of education as a characteristics of CEOs does not affect tax compliance behaviour of SMEs. Gender as a characteristic of CEOs also does not affect tax compliance behaviour of SMEs.
Lastly, level of tax literacy of CEOs has no significant effect on tax compliance behaviour of SMEs.
