Tax Knowledge, Compliance Cost and among Small Scale Enterprises in Ibarapa East Local Government Council of Oyo State, Nigeria

The study investigated the influence of tax knowledge and compliance cost on tax compliance among small scale enterprises in Ibarapa East local Government council of Oyo state with a particular emphasis on the sachet water industry. The research adopted the descriptive survey design. The study populations are the entire staff of all the pure water factories from the selected local government councils of Oyo state. The data was collected by administering the questionnaire to a total number of 625 members of staff. Inferential conclusions were formed from the coding of quantitative data in the Statistical Package for Social Sciences (SPSS) data editor, and the analysis's findings were presented using descriptive statistics such response frequencies. Findings showed that there is a strong positive relationship between tax compliance and tax knowledge of small-scale enterprises operators in Oyo state and also there is significant relative influence among compliance cost, tax knowledge and legal frame work of small-scale enterprise on tax compliance in sachet water industry. Based on the above findings, this study concludes that there is the need for a more nuanced and comprehensive approach to enhancing tax compliance among small-scale industries, as exemplified by the sachet water factories in Oyo State. Recognizing that enforcement alone is insufficient, the study advocates for the cultivation of a culture of compliance through education, simplified procedures, and tailored support programs. The study therefore recommended that the government can effectively bridge the knowledge gap that often hinders small sachet water businesses from navigating the complexities of taxation by designing and executing such educational campaigns and also develop tailored support programs targeted at small-scale sachet water enterprises.