To find out if tax payers are aware of all their tax obligations and policies. The effect of tax payment on the performance of smes. Making up about 97% of the entire economy, they serve. Society for business research promotion 2 cease to exist when taken over by another firm. Particularly in developing countries the problems of taxing small businesses are welldocumented, but at a smaller scale, problems of tax evasion of small businesses may also be disproportionate in developed economies.
Abstract this is a research work on the impact of taxation on small scale business in a developing economy. Following our previous reports on the total cost of administration1 to small and medium enterprises smes, and the impact of late payments2, this study examines the issue of taxation on smes. Impact of multiple taxation on small and medium scale. Perhaps the greatest generator of interest in entrepreneurship and small business is the widely held belief that small businesses in the united. The role of small and large businesses in economic development. Effect of multiple taxation on the performance of small. Small and medium sized enterprises smes are important for their contribution to employment, innovation, economic growth and diversity. Small and medium scale enterprises according to akinsulire 2010 accelerate rural development while. Gordon keith the impact of the federal tax system on small business has been a matter of increasing interest and concern to many persons. Implication of multiple taxation on the performance of small scale enterprises. A study carried out by the federal office of statistics shows that in nigeria, small and medium. This study therefore seeks to assess the essence of keeping accounts in small scale business in nigeria. Indus university business research report by jawad ahmed and osama siddiqqui, bba 6th impact of multiple taxation on small.
Impact of taxation on the operation of small and medium. The purpose of the study was to evaluate the impact of taxes on performance of small scale business enterprises in rivers state. For instance, what is categorized as smes in europe or america, may not be similar to that of africa. The study was carried out to find out the impact of taxes on small and medium scale business enterprises in. The role of small and large businesses in economic. Effect of multiple taxation on the performance of small and. The study aimed at assessing the performance of business enterprises in nigeria, finding out if tax payers are aware of all their tax obligations. The higher the task risk of the greater the efforts to fulfill taxation requirements as well as to check how those requirements are met, the lower the initiatives for small and medium scale businesses. The relevance of accounting records in small scale business. The purpose of the study was to evaluate the impact of taxes on small scale business enterprises in nigeria. Impact of taxation on small and medium scale business in nigeria abstract small and medium enterprises play a very important role in development of the nigerian economy. Small and medium scale businesses alongside with microenterprises smmes contribute 36.
This is approved for students in accountancy, business. Abstract this is a research work on the impact of taxation on smallscale business in a developing economy. Biggs and uncle joes bakery abstract an expansive wisdom is bought by experience learning teaching more in one year then experience in twenty. Ideally, taxes should be neutral with regard to the business decisions of smes, including decisions related to their creation, form and growth. Over the years, small and medium scale enterprises smes have been an. Smes have to recognize what their resources are and they need to know how to utilize them, flex them into an advantage for their business.
It is evident from the table that all the categories of taxes have been increasing during the period under study. Ideally, taxes should be neutral with regard to the business. The specific objectives of this study were as follows. Issues, challenges and prospects of small and medium scale. Government policies that affects small and medium scale. The most frequent upper limit designating an sme in nigeria is 5250 employees. For instance, what is categorized as smes in europe or america, may not be similar. This is approved for students in accountancy, business, computer science, economics, engineering, arts. Another problem in taxing small and medium sized enterprises is tax evasion. Taxation of small and medium enterprises by a thesis. Proportionality the tax compliance burden should not be disproportionate to the businesses sizes, sme should have correspondingly small and medium compliance burden. Another problem in taxing small and mediumsized enterprises is tax evasion.
The study thus investigated the performance of the small and medium enterprises subsector of the nigerian economy, its problems and prospects and recommended measures to make the subsector. The small and medium sized enterprises smes play an important role for economic growth in vietnam. Taxation of small and medium enterprises semantic scholar. Access to finance is necessary in order to initiate, operate, develop and facilitate growth. This study examines the impact of the microfinance on growth of the small and medium entrepreneurs smes in morogoro municipality. In akwa ibom state, the importance of small and medium scale business as a creator of jobs, particularly for those with a low skills level, is widely recognized.
Pdf the effect of tax payment on the performance of smes. Profit maximization is the major goal of every small scale enterprise. Aug 15, 2016 in akwa ibom state, the importance of small and medium scale business as a creator of jobs, particularly for those with a low skills level, is widely recognized. Over the years, small and medium scale enterprises smes have been an avenue. Impact of taxation on the operation of small and medium scale.
In addition, business rates have been enhanced since the introduction of devolved government hence increasing the tax burden to most small and medium sized enterprises. Businesses in whatever form, size or sector are required by law to comply with all relevant legislation including taxation. The impact of taxation on small and medium scale business in nigeria taxes have existed virtually as long as there have been organized governments. Business, whether small, medium or largescale can be defined as the sum total of activities involved in the creation and distribution of goods and services for private or personal profit isimoya, 2005. This study is on the effects of multiple taxation on the performance of small and medium scale enterprises smes. The relevance of accounting records in small scale. Government policy and performance of small and medium. Small scale enterprises form the core of majority of the worlds. Apr 07, 2017 the purpose of the study was to evaluate the impact of taxes on small scale business enterprises in nigeria.
The study was carried out to find out the impact of taxes on small and medium scale business enterprises in nigeria. The higher the task risk of the greater the efforts to fulfill. Pdf taxation plays important role in the development of every economy as well as the growth of small and medium enterprises smes. Research objectives the research objectives are as follows. To assess the impact of taxation on small and medium scale business enterprises in nigeria. However, it is accepted that there are only a small proportion of new firms that grow to employ 50 or more workers.
Factors that effect taxation of small and medium sized. Particularly in developing countries the problems of taxing small businesses are welldocumented, but at a smaller scale. It consists of existing literature on taxation by different scholarsresearch studies from magazines, text books, journals and news papers. This chapter consists of the background to the study, statement of the problem, purpose of the study, objectives of the study, research questions, scope and significance of the study. Definitions are mainly based on the number of employees as well as the total assets of the enterprise. Small and medium enterprises smes and its tax implication. Implication of multiple taxation on the performance of. To determine whether poor financing constitute a major challenge in the performance of smes in portharcourt city. The higher is the share of small and medium businesses in the economy, the higher productivity can be potentially realized with the sme sector. Perhaps the greatest generator of interest in entrepreneurship and small business is the widely held belief that small businesses in the united states create most new jobs.
In this paper, the impact of two current policies in ukraine on sme taxation. Small and medium enterprises smes form the core of majority of the worlds economies. The econometric technique adopted for the study was multiple regression method based on ordinary least squares technique. This study is on the effect of multiple taxation on the performance of small and medium scale enterprises. Over the years, small and medium scale enterprises have been an avenue of job creation and the empowerment of nigerias citizen, providing about 50% of all jobs in nigeria and also for local capital formation. Impact of taxation on small and medium scale business in nigeria abstract small and medium enterprises play a very important role in. Ocheni1 abstract the mortality rate of small and medium enterprises which make. Furthermore, the processes of production in smes setting are labour intensive and manual. Small and medium enterprises are the catalyst for economic growth in most economies thus, the fundamental objective of this study is to investigate the impact of loans on small and medium enterprises smes in nigeria. Pdf impact of tax on small businesses edwin oyaro academia. To assess the impact of taxation on small and medium scale. Get free research paper on impact of multiple taxation on small and medium scale businesses in nigeria project topics and materials in nigeria. This paper discusses the importance of creating taxation systems which promote sme tax compliance. Effects of multiple taxation on the performance of small.
Simplicity the tax system should be easy to administer and comply with. Oct 16, 2015 small and mediumsized enterprises smes are nonsubsidiary, independent firms which employ less than a given number of employees. The impact of accounting system on the performance of. Small and medium enterprises small businesses form the core of majority of the worlds economies. Gordon keith the impact of the federal tax system on small business has been a matter of increasing interest and concern to many persons durinj the last few years. Sep 15, 2017 tax assessment can adversely affect many parts of the economy, including impacts on firm creation and on the advancement of little and medium sized undertakings smes. 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. Over the years, small and medium scale enterprises smes have been an avenue of job creation and the empowerment of nigerian citizens, providing about 50% of all jobs in nigeria and also for local capital formation.
Certainty in tax liability is important for smes that sometimes need to make seat of the pants. Effects of multiple taxation on the performance of small and. Development of small and medium enterprises is heavily influenced by the level of taxation. Abstract small and medium enterprises play a very important role in development of the nigerian economy. The evidence suggests that small businesses indeed create a substantial majority of net new jobs in an average year. Over the years, small and medium scale enterprises have been an avenue of job creation. For many new and small companies, profit margins can be very low, particularly when the cost of finance and building up stock is taken into account. Pdf factors affecting small and medium enterprises smes. The higher is the share of small and medium businesses in the economy, the higher.
The performance and importance of smes going forward are bound to be even bigger and more immanent with a detectable impact on the rising world commercialism order. A study carried out by the federal office of statistics shows that in nigeria, small and medium enterprises make up 97% of the economy ariyo, 2005. Every business operates within an economic environment and are therefore susceptible to the changes that takes place in the economic policies overtime. However, the mortality rate of these small firms is very high. This study is on the quantitative impact of small and medium scale enterprises smes on nigerias economic growth performance for the sample period 1993 to 2011. The impact of innovation on small and medium enterprises. The study was meant to establish the impact of taxes on performance of small scale business enterprises in ntungamo town council, ntungamo district. What are the effects of taxation in small business enterprise. Impact analysis of tax policy and the performance of small. Pdf the study examined the effects of multiple taxation on the growth of small and medium enterprises smes in nigeria. Ocheni1 abstract the mortality rate of small and medium enterprises which make up 95% of the economy is very high and these small and medium enterprises serve as source of employment generation. Most small medium scale enterprises are located in the interiors of the nation. Taxation can have important effects on many parts of the economy, including impacts on firm creation and on the development of small and mediumsized. Tax assessment can adversely affect many parts of the economy, including impacts on firm creation and on the advancement of little and mediumsized undertakings smes.
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