EFFECT OF TAX POLICY AND TAX ADMINISTRATION ON BUSINESS CONTINUITY OF SMALL AND MEDIUM ENTERPRISES IN NIGERIA

This study investigates the impacts of tax policies and administration on the business continuity of Small and Medium Enterprises (SMEs) in Nigeria. The study аdоpted a descriptive survey research design. The population consists of the total number of registered Small and Medium Scale Enterprise Owners within the selected four major commercial states (Lagos, Kano, and Port-Harcourt, and Abuja) in Nigeria, with an estimated number of twenty-five thousand, six hundred and sixty-one. The study made use of the quantitative research method Statistical Package for Social Sciences (SPSS) was used to analyze the data. Findings showed that tax policy seems to have an impact on the SMEs in Nigeria, and the results from the regression analysis confirm this hypothesis. The relationship is moderately positive, which implies that tax policy affects business continuity, but it is not the sole factor. Therefore, tax incentives, tax reliefs, and simplified tax rules and regulations can significantly lower the operational burdens placed on SMEs, enhancing their financial stability and prospects for growth. This study concludes that an efficient tax policy positively enhances the continuity of SMEs as it minimized the compliance burden, improved accountability, and built confidence of the SMEs in the tax authorities and therefore recommended that tax authority ought to consider setting up dedicated support desks or help centers for SMEs which could help business owner’s access information, make inquiries and resolve issues with ease.