Impact of Taxation on Performance of Small and Medium Enterprises in Kansanga, Makindye Division
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Date
2019-10
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Publisher
Kampala International University. College of Economics & Management
Abstract
The general purpose of the study was to evaluate the impact of taxes on
performance of small and medium business enterprises in Kansanga and the specific
objectives were; to assess the performance of small scale business enterprises
in Kansanga, to find out if tax payers are aware of all their tax obligations and
policies and to find out problems affecting tax payers and their businesses in Kansanga
The study revealed that taxes mainly affects the performance of Small and Medium
Enterprises through lost sales during closure of the business premises by URA, the
loss of machinery and equipment due to delay in remitting the tax and the loss of
capital due to the fines imposed by URA onto SME5 that default on their tax obligation.
Overall business performance was fair as most businesses could duly cover up their
expenses, had enough stock, awareness of tax payers was poor and a number of
problems were encountered. It can be concluded that taxes are major limitations to
the growth and expansion of SMEs in Kansanga. This is because very little and
sometimes nothing is left after covering expenses and tax to allow the expansion and
growth of the existing SMEs. The findings further revealed that tax officials are
inefficient, the mode of tax collection and assessment was un fair, taxes levied are
unfriendly and also most of the respondents revealed they do not get assistance from
the tax authorities.
The study recommended that, URA should find a way of assessing the tax in that the
SMEs should pay early in the financial year in order to give enough time to the
businesses to pay their dues rather than make an assessment and demand for payment
spontaneously, the tax authorities should introduce a scheme that allows tax payers to
pay the tax obligation in the installments over a given period of time as opposed to
lump sum at once and that URA should reach out and educate the business community
about the different tax rates and mode of payment
Description
Research Report Submitted to the College Of Economics
And Management in Partial Fulfillment of the Requirements for the Award of a Bachelor of Business Administration of Kampala International University.
Keywords
Taxation, Enterprises, Makindye Division, kampala