Tax Compliance Cost of SMEs in Ghana
| Autor: | Ernest Bruce-Twum, Danie Schutte |
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| Rok vydání: | 2021 |
| Předmět: | |
| Zdroj: | journal of accounting finance and auditing studies (JAFAS). 7:1-22 |
| ISSN: | 2149-0996 |
| Popis: | Purpose: The study sought to identify and measure the tax compliance costs incurred by SMEs in Ghana. It further sought to ascertain the compliance benefits earned by taxpayers. Methodology: Data was collected through a self-administered survey of 116 SMEs in five regions in Ghana. Findings: The study found that SMEs incur a gross compliance cost of GHC2 315 annually (excluding technological cost) or GHC4 687 where technological cost is included. The breakdown of the gross TCC by components showed the Internal Cost of GHC1 048, Incidental Cost of GHC121 and External Cost of GHC1 146. This study could not estimate the tax compliance benefits, even though most of the respondents agreed to the existence of benefits irrespective of their size. Small businesses were found to spend mostly on tax computational activities while medium and larger firms spent on tax planning activities. The results also depict the regressive nature of income tax in Ghana. Originality/Value: Very little is known about the magnitude of resource SMEs in Ghana devote to complying with tax. The paper thus provides a reference point for tax compliance cost against which future studies and improvement to the tax system could be measured. This study fills the literature gap on TCC in Ghana. peer-reviewed |
| Databáze: | OpenAIRE |
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