FACTORS THAT AFFECT TAX COMPLIANCE AMONG SMALL AND MEDIUM ENTERPRISES (SMES) IN ENUGU, SOUTH-EASTERN NIGERIA

Tax is an important source of revenue for governmental project developments. However, tax compliance among small and medium scale industries (SMEs) in Enugu Sout- East Nigeria is poor. Therefore, this study is aimed and conducted using SMEs in South-East Nigeria to evaluate and rank the factors that encourage non-compliance with tax obligation by SMEs. A survey and descriptive design was used in the study. It was found that high tax rates and complex filing procedures are the most crucial factors causing non-compliance of SMEs. Other factors such as multiple taxation and lack of proper enlightenment campaign affects tax compliance among the SMEs surveyed only affects tax compliance to a lesser extent. Therefore, it is recommended that SMEs should be levied lower percentage of taxes to allow enough funds for business development and better chances of survival in a competitive market. Tax incentives should also be increased by government to those potential viable tax payers