AN INVESTIGATION INTO TAX COMPLIANCE BEHAVIOUR OF SMALL AND MEDIUM-SIZED ENTERPRISES IN THE KUMASI METROPOLIS

ABSTRACT

The purpose of the study was to examine the tax compliance behavior of ownermanagers

of Small and Medium-sized Enterprises (SMEs). The study employed

the survey design underpinned by the quantitative approach to research. The

sample comprised 150 owner-managers of SMEs in the Kumasi Metropolis

selected from three major sectors – manufacturing, trading and services using the

stratified sampling technique. Data was collected using a questionnaire and

analyzed using mean scores and standard deviations. The results show that the

major acts of tax non-compliance committed by SMEs includedunderstatement

of income, failure to file tax returns, and failure to pay taxes within the period

required. It was found that majority of owner-managers of SMEs could not

compute their tax liabilities and file their tax returns by themselves. Moreover, it

was revealed that the factors that influence tax compliance behaviour of SMEs

could be classified into four major categories – economic factors, social factors,

institutional factors, and demographic factors. It was deduced from the findings

that SMEs engage in various forms of tax non-compliance due to their limited

knowledge in taxation and the seeming weaknesses in the tax administration

system in terms of strict enforcement of tax laws and effective tax education.

Hence, it was recommended that the Ghana Revenue Authority (GRA) should

heighten its public tax education and awareness campaigns with the aim of

encouraging positive tax morale among taxpayers.

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APA

ANDOH, C (2021). AN INVESTIGATION INTO TAX COMPLIANCE BEHAVIOUR OF SMALL AND MEDIUM-SIZED ENTERPRISES IN THE KUMASI METROPOLIS. Afribary. Retrieved from https://tracking.afribary.com/works/an-investigation-into-tax-compliance-behaviour-of-small-and-medium-sized-enterprises-in-the-kumasi-metropolis

MLA 8th

ANDOH, CYNTHIA "AN INVESTIGATION INTO TAX COMPLIANCE BEHAVIOUR OF SMALL AND MEDIUM-SIZED ENTERPRISES IN THE KUMASI METROPOLIS" Afribary. Afribary, 02 Apr. 2021, https://tracking.afribary.com/works/an-investigation-into-tax-compliance-behaviour-of-small-and-medium-sized-enterprises-in-the-kumasi-metropolis. Accessed 25 Nov. 2024.

MLA7

ANDOH, CYNTHIA . "AN INVESTIGATION INTO TAX COMPLIANCE BEHAVIOUR OF SMALL AND MEDIUM-SIZED ENTERPRISES IN THE KUMASI METROPOLIS". Afribary, Afribary, 02 Apr. 2021. Web. 25 Nov. 2024. < https://tracking.afribary.com/works/an-investigation-into-tax-compliance-behaviour-of-small-and-medium-sized-enterprises-in-the-kumasi-metropolis >.

Chicago

ANDOH, CYNTHIA . "AN INVESTIGATION INTO TAX COMPLIANCE BEHAVIOUR OF SMALL AND MEDIUM-SIZED ENTERPRISES IN THE KUMASI METROPOLIS" Afribary (2021). Accessed November 25, 2024. https://tracking.afribary.com/works/an-investigation-into-tax-compliance-behaviour-of-small-and-medium-sized-enterprises-in-the-kumasi-metropolis