IMPACT OF TAX PAYMENT ON THE PERFORMANCE OF SMES. THE CASE OF SELECTED SMES IN SUNYANI MUNICIPALITY.

The study aimed to determine the impact of tax payment on the performance of SMEs in the Sunyani Municipality, Bono Region, Ghana. The specific objectives of the study were: To analyze the financial impact of taxation on SMEs in the Sunyani Municipality, to assess the perception of SME owners on … See more

The study aimed to determine the impact of tax payment on the performance of SMEs in the Sunyani Municipality, Bono Region, Ghana. The specific objectives of the study were: To analyze the financial impact of taxation on SMEs in the Sunyani Municipality, to assess the perception of SME owners on the current tax environment for SMEs in the Sunyani Municipality; and to investigate the administrative burden of tax compliance on SMEs in the Sunyani Municipality. A survey research design was employed with a quantitative research approach. The convenience sampling technique was used to select respondents for the study. The total sample size considered for the study was 98 SME owners. Data collected from the field were collated and processed for easy comprehension. Data was processed with the aid of Microsoft Excel and SPSS. Data was presented in tables and charts using mean and standard deviation as well as regression analysis. The study revealed that high annual turnover leads to less negative or even positive financial from taxes. The transparency and clarity of tax regulations for SMEs were perceived neutrally according to the study findings. The study finally revealed that the majority of the participants find filing tax returns to be moderately challenging and time-consuming, with some individuals experiencing even greater difficulty. The study recommends that the Ghana Revenue Authority (GRA) implement a multi-pronged to improve the SME tax environment. Thus, GRA to develop clear and concise tax guides targeted specifically for SMEs.

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