Tax Compliance Behaviour Among Small and Medium Enterprises in Oyo State

Tax compliance among small and medium enterprises remains a critical challenge for revenue authorities in Nigeria, affecting government capacity to fund public services and infrastructure development. This study examines the determinants of tax compliance behaviour among small and medium enterprises registered with the Federal Inland Revenue Service and Oyo State Board of Internal Revenue, located within the South West geopolitical zone. Using a cross-sectional survey design, primary data are collected from 240 enterprise owners and managers in Ibadan metropolis and Ogbomosho through structured questionnaires. The data are analysed using logistic regression to identify factors that predict compliance versus non-compliance. The theoretical framework draws on the economic deterrence model of tax compliance, social norms theory, and the slippery slope framework. The study investigates whether tax knowledge, perceived fairness of the tax system, trust in government, tax authority enforcement capacity, and proximity to tax offices significantly influence compliance decisions. Recent studies confirm that informal sector enterprises exhibit distinct compliance profiles compared to formally registered businesses, and this study accounts for this distinction in its sampling design. The prevalence of multiple taxation by local government authorities is also examined as a potential compliance barrier. Findings are expected to inform the Joint Tax Board, the Federal Inland Revenue Service, and state revenue services on how to design incentive structures and simplified processes that improve voluntary compliance among small and medium enterprises. Keywords: tax compliance, small and medium enterprises, Oyo State, revenue, deterrence model