How to achieve tax compliance of small and medium enterprises (SMEs) by university’ tax centre: A perspective of the slippery slope theory

Our research aims to explore the multifaceted reasons behind the prevalent issue of tax noncompliance among SMEs and the ways to solve such issues through the university’s tax center. We interviewed lecturers who specialize in taxation, heads of financial departments of SMEs, and SME owners. Our study reveals that tax noncompliance among SMEs stems from a blend of factors, including a lack of awareness and understanding of tax regulations, the overwhelming complexity of tax laws, and an educational gap between SME owners’ formal education and the practical knowledge required for effective tax management. This issue is compounded by rapidly changing tax laws, limited resources, and day-to-day operational demands. Additionally, distrust in government institutions, influenced by perceptions of corruption or inefficiency, and a culture of tax avoidance within some business communities further exacerbate noncompliance. The perceived complexity and administrative burden of tax filing, financial constraints, and fear of making mistakes also play significant roles. In this sense, we found that university’s tax centers are crucial in addressing these challenges by offering educational programs, personalized consulting services, and fostering a culture of compliance, thus supporting SMEs and promoting a broader culture of tax compliance.