ABSTRACT
The study considered the effectiveness of tax incentives on small and medium scale enterprise in Akwa Ibom State. The specific objectives were to examine socio economic characteristics of small and medium scale enterprise owners, to identify the awareness level of tax payers of tax incentives available in the study area, identify the various incentives available and to determine the effects of tax and tax incentives on the profit of small and medium enterprises. A multi staged sampling technique was used in the selection of the respondents and tools used for analysis were the descriptive statistical tools, and correlation analysis. It was found that tax incentive has a positive influence on profit and tax had a negative effect on profit. From the findings policy recommendations were made and government was advised to increase the frequency of incentives to enable tax payers enjoy more profit and should also sustain awareness level of the incentives enjoyed by tax payers.
TABLE OF CONTENTS
Cover page i
Dedication ii
Certification iii
Declaration iv
Acknowledgment v
Table of contents vi
List of tables ix
Abstract x
CHAPTER ONE
1.0 introduction 1
1.1 Background of the study 1
1.2 Statement of the Problem 3
1.3 Research Question 4
1.4 Objective of the Study 4
1.5 Research Hypothesis 5
1.6 Significance of the Study 5
1.7 Scope of the Study 6
1.8 Limitation of the Study 6
CHAPTER TWO
2.0 Review Of Related Literature 7
2.1 Conceptual Framework 7
2.2 Overview Of Tax And Tax Incentives 8
2.3 The Effect Of Tax Incentives On Small And Medium Scale Enterprise 13
2.4 The Role And Characteristics Of SMES In Developing Countries 13
2.5 The Need For Small And Medium Scale Enterprises In Nigeria 14
2.6 Justification For Small And Medium Scale Enterprises Development In Nigeria 15
2.7 Problems Of Small And Medium Scale Enterprise In Nigeria 16
2.7.1 Poor And Inadequate Start-Up Process 16
2.7.2 Financial Problems 17
2.7.3 Management Problems 18
2.7.4 Strategic Planning Problems 18
2.7.5 Lack Of Infrastructural Development 18
2.7.6 Socio-Cultural Problems 18
2.7.7 Global Economic Problem 19
2.7.8 Trade Groups 19
2.7.9 Multiple Taxation 19
2.8 Possible Solutions To Problems Of Tax Administration In Small And Medium
Scale Enterprise In Nigeria 20
2.9 Empirical Review 21
CHAPTER THREE
3.0 Research Methodology 22
3.1 Area Of Study 22
3.2 Sampling Technique 23
3.3 Sources And Method Of Data Collection 23
3.4 Method Of Data Analysis 24
3.5 Specification Of Model 24
CHAPTER FOUR
4.0 Results And Discussion 25
4.1 Socio Economic Characteristics Of Tax Payers 25
4.1.1 Rank 25
4.1.2 Age 25
4.1.3 Sex 26
4.1.4 Marital Status 27
4.1.5 Education 27
4.1.6 Experience 28
4.2 Analysis Of The Level Of Tax Payers Awareness Of Tax Incentive Available 29
4.3 Analysis Of Available Tax Incentives In Akwa Ibom 29
4.4 The Analysis Of The Effect Of Tax And Tax Incentives On The Profit Of Small
And Medium Scale Enterprise 30
CHAPTER FIVE
5.0 Summary, Conclusion And Recommendations 32
5.1 Summary 32
5.2 Conclusion 32
5.3 Recommendation 32
REFERENCES 33
APPENDIX