Browsing by Author "Atitsogbui Felix Ameko"

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    Investigating barriers to tax payment in the informal sector of Ghana: a case study in nkwanta north area.
    (Knust, 2021) Atitsogbui Felix Ameko
    The fiscal and economic growth of any country hinges largely on the amount of fund the government can raise to ensure good governance through the provision of the services and infrastructure that citizens needed. Taxes form a major part of generating revenue for government spending and there seem to exist a large sector of the economy which is not properly taxed. The dynamics in the informal sector makes it difficult for its taxation even though it has the potential to be a major revenue generator for the government than the formal sector. The study was therefore conducted to examine the barriers to tax payment in the informal sector of Ghana using the Nkwanta North Area as a case. The study adopted a descriptive research design since the research is a case study and questionnaires were the data collection instruments employed by the researcher to collect data using the purposive sampling technique. The findings of the study revealed that annual income generated from the informal sector is very low and the majority of businesses in the informal sector do not pay tax because most of them are not registered for tax. The study also shows evidence that tax payment is affected by business factors that informal sector business face such as poor record-keeping as well as behavioural factors such as perceived corruption of tax officials. Also, the study identified low revenue generation, fines and poor development as implications that emanate from non-payment of tax by the informal sector. The study recommended that tax agencies must adopt workable strategies and programs for registering businesses in the informal sector. Taxpayers in the informal sector should also be trained in the areas of bookkeeping and on related tax issues while the government works to simplify tax payment for informal sector businesses.