Effect of tax on performance of the small-scale businesses in Bujumbura, Burnuim:
Loading...
Files
Date
2019-09
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management.
Abstract
The study investigated the effect of taxes on performance of small scale businesses in
Bujumbura. The following objectives guided the study: i) to find out the effect of the tax mode of
assessment on the performance of small scale businesses in Bujumbura; ii) to find out the effect
of the tax mode of collection on the performance of small scale business in Bujumbura; and iii)
to find out the effect of the legal tax penalties on the performance of small scale business in
Bujumbura. The study used cross~sectiona1 research design. The target population was 1 60
business owners and managers. The sample was 114 respondents though only 100 respondents
successfully paliicipLlted. The main research instrument was questionnaires and data was
analyzed using frequency and percentages, mean and linear regression analysis. The study
revealed that tax mode of assessment significantly affect performance of small scale businesses
(R2=0 065 p=O.Ol 1). In addition, the study revealed that tax mode of collection significantly
affect performance of small scale businesses (R20.476, pO.000). Lastly, the study revealed that
legal tax penalties significantly affect performance of small scale businesses (R2=0.194,
pO.000). The study made the following conclusions: tax mode of assessment significantly
affects the performance of small scale businesses in Bujumbura; tax mode of collection
significantly affects the performance of small scale businesses in Bujumbura; legal tax penalties
significantly affect the pcrformai~ce of small scale businesses. The study made the following
recommendations: small scale business owners should use accounting software in the assessment
and management of their business tax liabilities in order to minimize the time and energy used in
the tax management and therefore enables the use of those resources to increase the performance
of their business. Furthermore, tax officers should increase their visits to business premises so as
to provide a better understanding of tax obligations and tax procedures, an occasion to answer
questions that small scale businesses owners may have and, in that way, help to increase the
awareness of small scale businesses owners about their tax liabilities which decreases tax
penalties and therefore positively affect the small scale businesses performance. Lastly, the tax
body of Buruncli should review the rate of tax interest on unpaid tax liability in order to reduce
the negative effect of taxes obligations and penalties on small scale businesses performance.
Description
a research report submitted to the college of economics and management in partial fulfillment of the requirements for the award of bachelor’s degree in accounting and finance of Kampala international university
Keywords
tax on performance, small-scale businesses, Bujumbura,