An assessment of the level of tax compliance among small and medium enterprises in the cape coast metropolis

No Thumbnail Available
Journal Title
Journal ISSN
Volume Title
The purpose of the study is to assess the level of tax compliance amongst small and medium enterprise in the cape coast metropolis. The study utilized the quantitative method. Two hundred (200) business owners and attendants of the cape coast metropolis were sampled using the simple random sampling technique. Descriptive statistics, correlation and regression were employed in the analysis of data. The study found low knowledge level of business owners and attendants of smes in cape coast regarding tax compliance and obligation issues. The study found that the most dominant indicator underscoring factors causing non-compliance of smes to tax laws and obligations is digital economy, followed by level of education, next is attitudes of sme operators, behaviour of tax administrators, structure of the tax system and the least being the rate of taxes. The study found that tax education exerts significant effects on tax compliance behaviour of smes. It was discovered that improving tax compliance comes with adopting strategies that can target some specific tax areas namely tax education, tax system, tax administration, tax payers, and digitization or technology issues. It was concluded that adequate knowledge, education, training on tax laws, compliance would improve amongst smes in cape coast. The study recommended that adequate tax education is required in order to improve the work of smes on regular basis in relation to tax compliance.
A thesis submitted to the department of accounting and finance, Kwame Nkrumah university of science and technology in partial fulfillment of the requirement for the award of a degree in Master of science (accounting and finance)