Tax Compliance Barriers and Internally Generated Revenue in Nigeria: Empirical from Small and Medium Enterprises in Portharcourt Metropolis

The study examined the effect of taxation barriers on government’s revenue generation in Nigeria. The specific objectives were to determine how the problems of ‘lack of reliable tax database/tax automation’ and ‘prevalence of cash transactions among Small and Medium Enterprises’ affect revenue generation. The theoretical frameworks used for the study were: ‘the benefit theory’ and ‘the ability -to- pay theory of taxation’. The study objectives guided the empirical review. The Researchers used the survey approach. Primary data were collected using structured questionnaires, while formulated hypotheses were analyzed using SPSS software. The result of the study showed that problems lack of reliable tax database and the prevalence of cash transactions impede government’s internal revenue generation in Nigeria. The study recommended effective tax automation, regular education of tax payers on the benefits of paying tax, training of revenue staff and provision of adequate logistics for efficient tax administration; as some of the measures to ensure improved revenue generation in Nigeria.