The study was carried out to find out the impact of taxes on small and medium scale business enterprises in Nigeria.The study aimed at assessing the performance of business enterprises in Nigeria, finding out if tax payers are aware of all their tax obligations, policies and problems affecting them as well as their businesses. The study applied both qualitative and quantitative research designs where interviews and questionnaires were used. Data was collected from both primary and secondary sources. Data was processed and analysed using formal tables, pie charts, narrative text, and correlation to find out the relationship between the impact of taxes and performance of small scale businesses. A total of 50 respondents were considered out of the entire population of small scale and medium enterprises.  The findings indicated that the performance of small scale business is affected by stock levels, capital employed, daily expenses, daily sales and the average amount of taxes paid annually.Most business owners are aware of taxes paid, uncertain of the mode of assessment and little assistance is given as regards tax awareness. The findings revealed the problems faced by the small and medium business men as regards mode of assessment, collection and tax collectors, inefficiency by tax collectors, loss of equipment, loss of sales and loss of stock as a result of taxes. Recommendations on impact of taxes included; improvement on the method of collecting taxes, educating the business community about its different tax rates and  introducing a scheme that allows tax payers to pay the tax obligation.

Certification………………………….…………………………………I

Dedication…………………………..…………………………………..ii

Acknowledgement……………………………………………………….ii

Outline page……………………..……………………………………….iv

Abstract……………………………………………………………………1

CHAPTER ONE

INTRODUCTION

1.5.3 Time scope………………………………………………………..…….….5

1.6 Significance of the study…….…………………………………………….5

CHAPTER TWO

 LITERATURE REVIEW

2.1 Introduction …………………………………………………………..………7

2.2 Theoretical Review …………………………………………….………..……9

2.3 Theory of Planned Behavior……………………………………………..…..12

2.4 Theory of Taxation…………………………….……………………………….12

2.5 Ability-to-Pay Principle…………………...…………………………………….13

2.6 Concept of Small Scale Enterprises…………………………………………….14

2.7 The concept of tax compliance……………………..……………………………16

2.8 problem of tax compliance ……………………………………………………..19

2.9 Contribution of Tax Policy on the Growth of SMEs……………………………21

2.10 Factors that Favor the Growth in SMEs………………………………………22

2.11 Policy Measures that will Encourage SMEs Growth…..………………………24

CHAPTER THREE

METHODOLOGY

3.1 Research Design…………………………………...………………………………28

3.2 Population of the study……………………………………………………………28

3.3 Sample design……………………………………………………………………..28

3.4 Method Of Data Collections………………………………………………………29

3.5 Methods of Data Analysis…………………………………………………………29

CHAPTER FOUR

DATA ANALYSIS AND RESULTS………………………………………………30

4.1 Introduction……………………………………………………………….………….30

4.2 Results of correlation and multiple linear regressions……..…………………………30

CHAPTER FIVE

SUMMARY,CONCLUSION AND RECOMMENDATION

5.1      Summary………………………………………….…………………………………….35

5.2     Conclusion……..……………………………………………………….………………..35

5.3 Recommendation………………………………………………………………………….37

Bibliography………………………………………………………………………….…..38

Appendix A..........................................................................................................................39

Appendix B………………………………………………………………………………..40