Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 189

Full Length Research Paper

The development of a scale to measure SMEs tax compliance in Nigeria: An adaptation of Fischer's model

Olusegun Vincent
  • Olusegun Vincent
  • School of Management and Social Sciences, Pan-Atlantic University, Lagos, Nigeria.
  • Google Scholar


  •  Received: 06 June 2021
  •  Accepted: 23 July 2021
  •  Published: 31 July 2021

Abstract

This study aims to investigate the reliability and validity of a new version of the tax compliance scale. The new scale extended the Fischer’s et al model of tax compliance by drawing more constructs and question items from the theoretical literature review, empirical results of the previous studies and similar questionnaires from different countries. There were 39 question items refined through the process of the pilot study (n = 53) for initial reliability. Finally, a complete questionnaire comprising 37 question items classified into seven main constructs (tax system complexity, tax noncompliance opportunity, tax deterrence sanction, tax rate, tax attitude and fairness perception, tax compliance cost, and tax information) were administered to 392 SMEs owners across all six geopolitical zones that make up Nigeria. All seven constructs demonstrated an acceptable level of internal consistency and intra-class reliability. The principal component analysis, correlational analysis and communality showed that the tax compliance scale fits the theoretical expectations and is well aligned with the prior empirical perspectives. The findings provide enough evidence that the new scale is reliable and valid and will be a useful instrument to the tax authority, policymakers and academics willing to gauge tax compliance amongst SMEs in Nigeria and beyond

 

Key words: Tax compliance scale, principal component analysis, Fischer’s model, reliability, validity, SMEs.