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Impact Of Taxation On The Operation Of Small And Medium Scale Business
[A CASE STUDY OF SMEs IN ABEOKUTA METROPOLIS]
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Mugulusi (2001) found out that a large proportion of business community
is ignorant about taxes they pay and how these tax are commuted. Most
Nigerians have poor/lack understanding of the rationale of taxes and
knowledge of different taxes imposed on them. As a result, the tax
compliance in Nigeria is still very low. Besides that, various surveys
conducted on small and medium scale businesses in Nigeria suggest that
about 60% of them keep no records at all, while 25% keep partial records
making it difficult to assess taxes (Ndandiko, 2000).
Alwedi (2002)
found out that most small and medium scale businesses are managed on
unprofessional lines (poor or no business records) thus there is great
uncertainty among traders in Nigeria as regard to tax matters and to
some extent due to their own making.
Ludega (2002) asserts that, many
traders have expressed ignorance about taxes imposed on their
businesses. They say this is highly attributed to the poor work being
done by the tax authorities leaving traders ignorant about issues like
the way taxes are assessed, advantages of paying taxes and the use to
which it is put. Therefore there is a need to sensitize the public
especially business owners. The sensitization should be done on
different taxes that impact the business owners and the rationale that
underlines the imposition of taxes, because tax payers are not aware of
the reasons for paying taxes, evasion of tax duties, laws and
regulations are very rampant. (World Bank Survey, 1994).
Eckeston
(1983) has said that a good tax should not impose tax that are
impossible to enforce even when people comply to tax laws voluntary, the
government should verify the tax payments, if not the tax becomes an
invitation to break law. Also, tax which each individual bound to pay
ought to be certain and not arbitrary. The form of payment, the manner
of payment, the manner of payment, the quantity to be paid ought all to
be clear and plain to the contributor and every other person. The scope
of tax should be clear. It should be certain that the tax can and will
be forced, for a tax that is easily evaded causes resentment among the
honest taxpayers and often decline in taxpayers morality. Secondly, the
taxes should be fair, that is the burden should be spread as fair as
possible, with regard to the tax payer’s ability to pay and in light of
his family circumstances, obligations and wealth. The tax should be
equitable as between one tax payer and another; they should be of
universal (general) application, and imposed without distinction of
persons between citizens in similar circumstances.
2.5 GAP IN LITERATURE
Many
researchers have really contributed to this research but they fail to
contribute on the negative impact of taxation on the growth of small and
medium scale businesses, which is among the objective of this research
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTSmall and Medium Enterprises play a very important role in development of the Nigerian Economy. Making up about 97% of the entire economy, they serve as a source of employment generation, innovation, competition, economic dynamism which ultimately lead to poverty alleviation and national growth. Tax policy is one of the factors that constitute the Small businesses’ economic environment. This research work tries to establish if any relationship exists between the growth of Small bu ... Continue reading---
QUESTIONNAIRE - [ Total Page(s): 3 ]QUESTIONNAIRETHE IMPACT OF TAXATION ON THE OPERATION OF SMALL AND MEDIUM SCALE BUSINESS (A CASE STUDY OF SMEs IN ABEOKUTA METROPOLOIS)COLLEGE OF HUMANITIES MANAGEMENT AND SOCIAL SCIENCESDEPARTMENT OF BUSINESS AND ENTREPRENEURSHIPKWARA STATE UNIVERSITY, MALETE.Dear Sir/Ma, This questionnaire is designed to acquire information on the effect of entrepreneurial characteristics on business performance in Nigeria. In order to enable me carry out this research work. All information collecte ... Continue reading---
TABLE OF CONTENTS - [ Total Page(s): 2 ]TABLE OF CONTENTSContentsCERTIFICATION DECLARATION DEDICATION ACKNOWLEDGEMENTS TABLE OF CONTENTS LIST OF TABLES ABSTRACT CHAPTER ONE INTRODUCTION 1.1Background of the Study 1.2 Statement of Research Problem 1.3 Research Aim and Objectives 1.4 Research Questions 1.5 Research Hypotheses 1.6 Significance of the Study 1.7 Limitation of the Study 1.8 Scope of the Study 1.9 Outline of Chapters 1.10 Operationalization 1.11 Defini ... Continue reading---
CHAPTER ONE - [ Total Page(s): 4 ]Taxation can help small business to get a high profit target bearing in mind that they will pay tax from the profits they make. From the above assertion, it is obvious that taxation has some impact on the establishment of small business. In the economy, there are manipulations of taxation rules for the encouragement of small business. This research work is an attempt to Enquirer whether a high incidence of corporate tax will go a long way to reducing the number of small business establishments w ... Continue reading---
CHAPTER THREE - [ Total Page(s): 3 ]Hence, the sample size for this study is 109 3.7.2 SAMPLING TECHNIQUES According to Abosede (2010) sampling techniques are approaches used in selecting samples from a study population. Given the large scale of SMEs in Abeokuta metropolis, the judgmental sampling procedure and non-random sampling technique will be used because it will not guarantee randomness, that is, elements of the population do not have the opportunity of being given an equal chance of selection. 3.7.3 SAMPLE FRAMEThe rese ... Continue reading---
CHAPTER FOUR - [ Total Page(s): 14 ]The F-Test (ANOVA)This is used to test the overall statically significant of the variables. It is meant to test the overall significance of the entire model as regards the dependent variable. It checks the joint variance of the explanatory variables. The level of significance to be used is 5%. Hence, if the probability is ≤ 0.05, the explanatory variables’ parameter estimates will be jointly statistically significant.The correlation between productivity and progressive tax is 0.71 w ... Continue reading---
CHAPTER FIVE - [ Total Page(s): 2 ]CHAPTER FIVESUMMARY, CONCLUSION AND RECCOMENDATIONS5.0 Introduction This chapter of this research work gives an overview of the entire research work. It starts with the summary of the work from the first chapter to the last chapter. The findings were looked at from the theoretical and the empirical point of view, conclusions were also made on all the content and contexts already discussed, after which recommendations were proffered as a means of setting benchmark and target for f ... Continue reading---
REFRENCES - [ Total Page(s): 2 ]REFRENCES• Aderemi, A. (2003). Small and Medium Scale Enterprises: The Nigerian Situation. [Power Point Slides] Capital Partners Limited. Retrieved from www.capitalpartnersltd.com/Small%20Medium%20Scale.ppt• Ariyo, D. (2005): Small Firms are the Backbone of the Nigerian Economy. Retrieved October 22nd, 2010, from http://www.africaeconomicanalysis.org/articles/gen/smallhtm.html.• Aryeetey, E. & Ahene, A. (2004): Changing Regulatory Environment for Small-Medium ... Continue reading---
