CHALLENGES OF PAYING TAX: A CASE STUDY OF SMALL AND MEDIUM SCALE ENTERPRISES IN THE KUMASI METROPOLIS

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July, 2015
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Abstract
This study uses a sample size of 400 respondents to examine the challenges of paying tax in the Kumasi metropolis in the Ashanti Region of Ghana using descriptive statistics, the study find out that lack of understanding of the tax laws; lack of proper book keeping; distance between the office and place of business is too high; cumbersome procedure involved in paying taxes to be the main challenges of paying tax by the small and medium scale enterprises. The study also found that, to the Ghana Revenue Authority; the procedures for tax filling are too complicated; inadequate managerial skills; inadequate managerial skills; government interference; inaccurate reporting of income and tax liability (keeping two separate books); and inadequate logistics. The study recommends tax reform and education; simplification of the tax law, monitoring and enforcement of tax laws, opening of more tax offices, stiffer punishment, proper use of tax revenue, reduction of tax rates and improvement in tax collection methods.
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A Thesis submitted to the Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the degree of Master of Business Administration (Accounting Option)
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