IMPACT OF DETERRENCE, GOVERNMENT PERFORMANCE AND RELIGIOUS ETHICS ON TAX EVASION OF SMALLAND MEDIUM ENTERPRISES IN KATSINA NORTH SENATORIAL ZONE

It is examined in the study the impact of deterrence, government performance and religious ethics on tax evasion of SMEs in Katsina State. The researcher collected data from 165 SMEs in Katsina North Senatorial Zone using a structured questionnaire. Three hypotheses were tested using (PLS-SEM). The study found deterrence, government performance and religious ethics are significantly related to tax evasion. Therefore, deterrence, government performance and religious ethics play a vital role in the changes of tax evasion activities of SMEs in Katsina State. It is recommended among other that tax authorities should redesign its deterrence factors in such a way that deterrence factors can be very effective in preventing tax payers from engaging in tax evasion activities. In addition, Katsina State government should provide adequate socio-economic projects in the state as it will motivate taxpayers to pay their taxes as at when due. Additionally, tax authorities should establish a religion unit within the State Board Internal Revenue Service to be charged with the responsibility of educating owners/managers of SMEs on the importance of regular and timely tax payments.