CRITIQUE OF PUBLIC ADMINISTRATIVE REFORM SYSTEM

The general objective of this study was to ascertain the effect of multiple taxation on the financial performance of SMEs in Abia State of Nigeria. The survey research design was used. The study population comprised of SMEs in Aba metropolis of Abia State. Convenience sampling method which is a nonprobability sampling technique was used to select the respondents. After data processing, the Statistical Package for Social Science (SPSS) was used for the data analysis, while hypotheses in the study were tested with simple linear regression analysis. Findings showed that tax rate and complexities was statistically significant and negatively affects the profitability of SMEs in Abia State of Nigeria. Also, tax compliance cost was a negative and significant factor also influencing the profitability of SMEs in Abia State of Nigeria. Given that the rate of taxation and its complexities have negative effects on the financial performance of SMEs in Abia State, Abia State government should endeavour to reduce the rate of tax charged on businesses within the state especially the SMEs. Also, since tax compliance rate amongst SMEs in Abia State is very poor. There is need for Abia State government through the Abia State Board of Internal Revenue to vigorously educate SMEs on the benefits inherent in paying taxes.

MULTIPLE TAXATION AND FINANCIAL PERFORMANCE OF SMES IN ABIA STATE, NIGERIA