The research was carried out in Wa Zonal Council, within the Wa Municipal District in the Upper West Region of Ghana. The main objective was to ascertain the impact of taxation on the performance of small-scale businesses in the study area. Questionnaires, interview guide and observation were used in getting primary data on the field and a sample of eighty (80) respondents from among two strata were randomly selected after being stratified into common groups. Percentage, frequency charts, and n using the Statistical Package for Social Sciences (SPSS) and Microsoft Excel were the methods used in analyzing the data.
Table of Contents
1.0 INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Significance of the Study
1.4 Purpose of the Study
1.5 Objectives of the Study
1.6 Research Questions
1.7 Scope of the Study
1.7.1 Subject Scope
1.7.2 Geographical Scope
2.0 LITERATURE REVIEW
2.1 Introduction
2.2 Definition of Small-scale Enterprise
2.3 Types of Small-scale Businesses
2.4 Characteristics of Small-scale Enterprise
2.5 Some Common Features of Small Scale Enterprises in Ghana
2.6 Contribution of the Small-scale Enterprise
2.7 What is Tax
2.7.1 The Concept of Taxation
2.7.2 Forms of Taxes
2.7.3 Objectives of Taxation
2.7.4 Tax Policies
2.7.5 Identification of Tax Payer
2.7.6 Fines and Penalties
2.8 Methods of Taxing the Small Scale Business
2.8.1 Administering Small Business Taxation
3.0 METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Study Population
3.4 Sampling
3.4.1 Sampling Design
3.4.2 Sample Size and Sampling Procedure
3.5 Study Variables
3.6 Sources of Data
3.6.1 Secondary Data Collection
3.6.2 Primary Data Collection
3.7 Methods of Data Collection and Instruments
3.7.1 Questionnaires
3.7.2 Interviews
3.7.3 Observation
4.0 PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS
4.1 Introduction
4.2 Background Characteristics of the Respondents
4.2.1 Age of the Respondents
4.2.2 Level of Education of the Respondent
4.2.3 Gender of Respondents
4.3 Assets/Stock Level Held in Business
4.3.1 Shortage in the Stock Level
4.3.2 Stock Level and Profitability
4.3.3 Average Daily Sales
4.3.4 Capital Employed
4.3.5 Average Daily Expenditure
4.3.6 Average Amount of Tax Paid
4.3.7 People Employed
4.4 Tax Awareness of Tax Payers
4.4.1 Tax Awareness
4.4.2 Tax Assessment
4.4.3 Records Kept by Business
4.4.4 Assistance Regarding Tax Awareness
4.5 Problem Faced By Tax Payers
4.5.1 Mode of Assessment, Collection and Tax Collectors
4.5.2 Efficiency of Tax Officers
4.5.3 Specific Effects of the Taxes on Business
4.5.4 Suggestions from Tax Payers
5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
5.2 Summary of Findings
5.3 Conclusion
5.4 Recommendations
5.5 Areas for Further Research
5.6 Limitation of the Study
Objectives and Research Themes
The primary objective of this dissertation is to investigate and evaluate the impact of taxation policies on the operational performance of small-scale business enterprises specifically within the Wa Zonal Council region of Ghana.
- Analysis of tax literacy and obligation awareness among small-scale business owners.
- Identification of operational problems faced by taxpayers in the informal sector.
- Evaluation of the correlation between tax burdens, stock levels, and overall profitability.
- Assessment of the effectiveness of tax collection methods and officer interaction.
- Development of recommendations for policy adjustments to support business sustainability.
Excerpt from the Book
2.8 Methods of Taxing the Small Scale Business
There are fundamental differences in initiating a tax regime in developed and developing economies. In developed economies, most small businesses are within the formal category and it has been easy to customize the existing tax legislation to suit their needs. Essentially, the system used does not represent a major departure from existing systems. Furthermore, the location of the taxpayer is easily traceable. However, in developing countries, the task is more difficult in that small taxpayers are not generally compliant with tax, registration, local government requirements and regulations (through ignorance as well as intent). Furthermore, they cannot be easily located or identified by the tax administration because they overwhelmingly operate the informal sector.
The following are the key features of the small taxpayers’ sector;
a. Small, transient, and often cash-based businesses.
b. High turnover rates – many new businesses created, many others fail, and a few grow. Many of them are family based, sole proprietorships and partnerships.
c. Low revenue potential (typically 5-10 percent) of total revenue
d. Expensive to administer.
e. Many remain outside the net due to challenges in complying with tax and other government regulation
f. They have weak accounting capabilities coupled with rudimentary accounting systems.
Summary of Chapters
1.0 INTRODUCTION: Outlines the importance of taxation for government revenue while establishing the research focus on how taxation impacts the performance of small-scale businesses in Wa Zonal Council.
2.0 LITERATURE REVIEW: Examines theoretical perspectives and existing literature on small-scale enterprise definitions, features, and the conceptual framework of taxation policy within developing economies.
3.0 METHODOLOGY: Details the descriptive survey design used to collect primary data from eighty business owners through questionnaires, interviews, and observations in the study area.
4.0 PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS: Provides an analytical breakdown of survey data concerning respondent demographics, stock management, tax awareness, and the specific challenges faced by business owners regarding tax compliance.
5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS: Synthesizes the core findings and presents evidence-based recommendations, such as introducing installment payment schemes to reduce the burden on small-scale enterprises.
Keywords
Taxation, Small Scale Business, Business Performance, Wa Zonal Council, Tax Compliance, Revenue Mobilization, Informal Sector, Tax Assessment, Ghana Revenue Authority, Fiscal Policy, Entrepreneurship, Economic Development, Tax Burden, Business Operations, Small Scale Enterprises.
Frequently Asked Questions
What is the core subject of this research paper?
The research explores the impact of taxation on the performance, growth, and operational viability of small-scale businesses located in the Wa Zonal Council area of Ghana.
What are the central themes addressed in the study?
Central themes include the relationship between tax burdens and profit margins, the level of tax awareness among small business owners, and the administrative challenges faced by both taxpayers and collectors.
What is the primary objective of this study?
The primary goal is to assess how current tax obligations and policies affect small businesses and to identify the specific problems that hamper their performance in the study area.
Which scientific methodology was employed?
The study utilized a descriptive sample survey approach, combining qualitative and quantitative research methods, including questionnaires for business proprietors and interviews with relevant authorities.
What does the main body of the work cover?
The body covers a comprehensive literature review, the methodological framework, and a detailed presentation of collected data regarding business assets, stock levels, daily sales, and encountered taxation problems.
Which keywords best describe this research?
Key terms include Taxation, Small Scale Business, Business Performance, Fiscal Policy, and Ghana Revenue Authority.
How does capital level influence the impact of taxes on these businesses?
The study reveals that businesses with lower capital bases (≤ GH¢ 2,500) are particularly susceptible to stagnation or business decline when faced with heavy tax burdens and fines.
What do respondents suggest to improve the current tax system?
Respondents suggested increasing the time allowed for tax payment deadlines, improving tax education to clarify assessment methods, and allowing payments made via bank accounts to avoid constant disruption of operations by tax officials.
Does the study find tax collectors efficient?
A majority of respondents indicated dissatisfaction, specifically noting that tax collectors are often ineffective in registration and assessment, emphasizing significant inefficiencies within the system.
- Quote paper
- Belinda Jane Owusu (Author), 2017, The impact of taxation on the performance of small scale businesses in Ghana. A case study of Wa zonal council, Munich, GRIN Verlag, https://www.grin.com/document/1270174
