Effects of Taxation on Business Activities in South Sudan Case Study: Eastern Equatorial State (Souht Sudan)

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Kampala International University,College of Education, Open, Distance And E-Learning
This research was based on the effects of taxation on business activities in Southern Sudan and the case study was Eastern Equatoria State. I was interested in this Topic because taxation system in Southern Sudan is still very weak in areas such as harmonization, coordination and capacity of South Sudan National Revenue Authority staff. South Sudan National Revenue Authority is adopting progressive tax system while the states use both progressive and proportional taxation systems and both the national government and the states have no proper modalities in administering taxation in the country. Taxes are still being paid on cash basis to the tax collectors and sometimes government receipts are not given to the tax payers and some tax payers do not pay taxes because there are no proper mechanisms at present to check them. Smuggling, corruption and bribing are other major problems contributing to low revenue from taxes to government, although business people keep complaining of high taxes. The major methods I used in data collection included sample selection, interviews and self administered questionnaires, and all these methods have been categorized on the questions set. The major findings obtained indicated that 80% of the respondents were in the opinion that the government of Southern Sudan should come up with a strategy of harmonizing and coordinating taxes in the country. However ,Adam Smith, one of the scholars continue to urge that taxation principle should be based on social justice, convenience, and the burden of paying taxes should be distributed to tax payers according to ability to pay approach, and the tax payers must be certain of the amount to pay. Adam Smith further stated that the cost of collecting taxes should not exceed expected revenue to finance public wants. Some recommendations provided in this report include further research on the administrative mechanisms of the taxation system in South Sudan. Secondly, a research on offenses and penalties on the followings: e Unpaid interest on tax • Offenses by companies • Compounding offenses • Penal tax x
A Research Report Submitted To The College Of Education, Open, Distance And E- Learning For Partial Fulfillment Of The Requirement For The Award Of Bachelor Of Education In Business Double Main (Secondary) Of Kampala International University.
Taxation, Business, South Sudan