The Relationship Between Tax Morale and Tax Compliance: Evidence from SMEs in Mogadishu, Somalia

In both developed and developing countries, tax compliance has become an important topic for personal and corporate taxation and stresses the taxpayer's duty to record income and assess tax liability. Moreover, tax compliance remains a crucial vehicle for increasing revenue generation and mobilization. Therefore, this study attempted to investigate the relationship between tax morale and tax compliance by using determinants of tax morale and its effect on tax compliance of taxpayers among small and medium-
sized enterprises in Mogadishu. Also, the study linked the results to literature and presented some suggestions. The study used an adapted questionnaire and distributed 399 questionnaires to the respondents of taxpayers of business owners, managers and accountants to achieve the study's objectives. The data were analyzed using SPSS software version 21 for descriptive statistics and multiple regression. The study found that government trust and national pride have significant but negatively effects on tax compliance. Also, the study found that socioeconomic and individual factors have a significant and positive impact on tax
compliance among SMEs.