INTERVENING EFFECT OF ATTITUDE ON THE CORRELATION BETWEEN AWARENESS AND COMPLIANCE OF SMALL AND MEDIUM ENTERPRISES IN ANAMBRA STATE

Abstract

This study investigated how attitude mediates the relationship between tax awareness and tax compliance among SMEs in Anambra State. Three research questions guided the study, and three hypotheses were formulated and tested. The study adopted a correlational research design. The study population consisted of 2,093 registered SMEs in Anambra State, from which a sample of 393 enterprises was drawn using proportionate sampling. Data were gathered with a structured questionnaire. The instrument’s face validity was confirmed while its reliability was assessed using Cronbach's Alpha, yielding coefficients of 0.79 for tax awareness, 0.74 for tax compliance, and 0.84 for tax attitude. Data was analyzed using Pearson Product-Moment Correlation Coefficient (PPMCC) while regression analysis was used to test the null hypotheses at 0.05 level of significance. The findings indicated a generally positive but low correlation between tax awareness and tax compliance among SMEs in Anambra State. It was concluded that while SME owners in Anambra State demonstrate a reasonable level of tax awareness, positive tax attitudes, and compliance behaviours, these factors alone do not significantly influence tax compliance outcomes. Based on these results, it was recommended that tax enforcement Agencies need to focus not only on awareness campaigns but also on strengthening enforcement mechanisms, incentives for compliance, and trust-building efforts to improve actual tax compliance behaviour