E-PAYMENT TAX COLLECTION SYSTEM AND LEVEL OF COMPLIANCE AMONG THE SMALL AND MEDIUM ENTERPRISES IN ONDO STATE, NIGERIA

Abstract The study examined the influence of e-payment tax collection systems on the level of compliance among SMEs in Ondo State. The study employed a cross sectional survey research design with the population of one thousand, nine hundred and ninety-nine (1,999) registered SMEs in Ondo State. The krejcie and Morgan (2010) table were used to select the sample size of 154. Purposive and stratified sampling techniques were adopted. Data were obtained from SMEs business owners. A self-designed closed-ended questionnaire designed on a 4-point Likert scale was used. This instrument was validated, and the reliability of the instrument were tested with the aid of Cronbach Alpha statistics and revealed a coefficient of 0.762. The data collected were analysed using descriptive and categorical regression analysis. The statistical package for social sciences (SPSS) software were used to analyse the data. The study revealed ETCC (B = 0.025; t = 0.408; p = 0.684 > 0.05); CCCS (B = -0.072; t = -1.113; p = 0.267 > 0.05) and CTSS (B = -0.049; t = -0.834; p = 0.406 > 0.05). The null hypotheses formulated was accepted. The study therefore concluded that electronic payment tax collection code, credit card collection service, and cash transfer collection system have no significant influence on the level of tax compliance among SMEs in Ondo State. Based on this findings, it was recommended that tax authorities should increase awareness and education on the benefits of e-tax systems to improve compliance rates. KEYWORDS: E-Payment, Taxation, Tax Collection System, Tax Compliance Small and Medium Enterprises