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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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CHAPTER FIVE
SUMMARY, CONCLUSION AND RECCOMENDATIONS
5.0 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 future researches and providing solution to small and medium scale business and taxation constraints identified in this work.
The purpose of this study is to examine impact of taxation on small and medium scale business.
5.1 Summary of the Work
This research work started with the background of this research topic which was explained to the best of the ability of the researcher. The objectives of the study was drawn from the statement of the research problem; to define taxation. to ascertain whether taxation actually affects the survival and growth of small and medium scale business and their ability to pay taxation. In other for this study to be given full details. It was restricted to some specific variables includes; age of the entrepreneur, gender, marital status, location of business, year existence and type of business. Literature of other authors were reviewed as they relate to the research topic then the theories that are surrounding this research topic were brought to light in the theoretical framework, empirical framework and the gap in the literature reviewed.
In the course of this study, the researcher discovered that lack of proper assessment of business before taxation discourages the entrepreneur to pay tax. Over taxation by the government also responsible for the ability to pay tax. It is also discovered that contracting organization cannot influence provisions for contract labor as they are not their concern but the concern of the contract firm that employed them. In addition, contract labor were found to be working under a condition which is not conducive neither for their personal life nor to the organization.
As discovered in this study, though there are increase of number of establishment of small and medium scale business but needed tax holiday and progressive tax for the survival and growth of the business in the local government area.
5.2 findings
The findings for this study are divided into 2 parts, theoretical findings and empirical findings. The theoretical findings are abstracted from the literature review in chapter 2 while empirical findings were derived from data generated from the field survey.
5.2.1 Theoretical findings
Theoretical findings of this study revealed the findings of the theories propounded that are in one way or the other related to this study. These theories include Taxation Theories (Wenzel, 1984), the small and medium scale business; challenge and prospect (Fred, 1982), (Eckeston, 1983) taxation and tax payer
Wenzel, (1984) through his theory which he called ‘taxation theories’ revealed that tax system is a means of ensuring the redistribution of income and wealth in order to reduce poverty and promote social welfare. For example, taxation can be used as economic regulator for promotion of economic stability and sustainable growth through fiscal policy. Government also has responsibility for fighting inflation, unemployment and creating a sound infrastructure for business.
Eckeston (1983) has said that a good tax policy should not impose taxes that are impossible to enforce even when people comply to tax laws voluntary, the government should verify the tax payment, if not the tax becomes an invitation to break the law. Also, tax which each individual is bound to pay ought to be certain and not arbitrary. The form 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 also be clear. It should be certain that the tax can and will be enforced, for a tax that is easily evaded causes resentment among the honest tax payers and often decline in tax payers morality. Secondly, the tax should be fair, that is the burden should be spread as fair as possible, with regard to the tax payers ability to pay and in light of his family circumstances, obligations and wealth. The taxes should also 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.
Thirdly, the taxes should be easy, economical and convenient to administer that is the cost of collecting to the authority and the cost of compliance to the tax payer should be as low as possible and should be consistent with effective enforcement which means that the purpose and manner of payment of the taxes should be related to the habits of the community.
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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 TWO - [ Total Page(s): 7 ]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 rec ... 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---
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---
