The Effect of Online Tax Filling on Tax Compliance among Small and Medium Size Enterprises (SMEs) in the Littoral Region of Cameroon

Abstract

The study aims to examine the effect of online tax filing on tax compliance among small and medium enterprises in the Littoral Region of Cameroon. The independent variables were accessibility and reliability, Tax awareness, Computer literacy level and tax education while the dependent variable was tax compliance. The study adopted a descriptive survey research design to attain these objectives where a sample of 200 tax payers were selected using stratified random sampling technique of companies and business familiar with the online tax system. The qualitative methods of data collection were used in this work were a self-administered questionnaire composed of closed ended, and likert scale questions was used to collect data from the respondents. Data obtained through a structured questionnaire were analysed using analysed using descriptive statistics and the multiple regression analysis (Ordinary Least Square Regression Technique) with the help of Statistical Package for Social Sciences (SPSS) software. The findings show that online tax filing has a significant positive effect on tax compliance among small and medium enterprises in the Littoral region. Specifically, tax awareness, computer literacy level and tax education have a positive and significant effect on tax compliance among SMEs while accessibility and reliability had an insignificant relationship with tax compliance. The study therefore recommends that the government should make the site to be user friendly that is very easy to use and accessible by all Cameroonian tax payers. The study further recommends that computer literacy levels should be emphasized by SMEs in order to improve on tax compliance levels.