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 comprised 2,093 registered SMEs in Anambra State, from which a sample of 393 enterprises was selected using proportionate sampling. Data were gathered with a structured questionnaire. The instrument's face validity was confirmed, and 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 were analyzed using the Pearson Product-Moment Correlation Coefficient (r), and regression analysis was used to test the null hypotheses at the 0.05 level of significance. The findings indicated a generally positive, yet 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 focus not only on awareness campaigns but also on strengthening enforcement mechanisms, incentivising compliance, and trust-building efforts to improve actual tax compliance behaviour.