Tax evasion and avoidance among small and medium sized enterprises in effiduase, ashanti region

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This research study was undertaken to examine Tax evasion and avoidance among small and medium sized enterprises in Effiduase, Sekyere – East District of the Ashanti Region of Ghana. The design of this research work was a case study one and the approach adopted was the mixed methodology incorporating both qualitative and quantitative questions based on the research objectives. The sampling procedure that was used for the study was a probability sampling while the technique used for a combination of purposive and convenience sampling. due to the interview guide developed. The population for the study was 349 comprising all small and medium size businesses within the study area. The sample size used for the study was 126 SMEs business owners. The study used both primary and secondary data and tools for data collection was were relied upon and used for this study. The main tools for the collection of data was an interview guide and a structured questionnaire. Nvivo software was used to analysed the responses obtained from the interview while SPSS version 27 was used for the responses obtained via the structured questionnaire. Three study objectives were formulated for the study which were firstly, to examine awareness and measures on tax commitment, secondly, the evaluations used for tax payments and lastly, challenges in the tax administration regime. Findings from the study shows, the practice of tax evasion and avoidance among SMEs within the under-studied district is very prevalent and widespread. Also, it is imperative for officials at Ghana revenue authority to constantly and consistently review and monitor the strategies they deploy to get business owners to honestly and without compulsion honour their tax obligations. Some key recommendations made to support the study were; active promotion of citizen participation and tax education on avoidance and evasion as well as strengthening the punitive regime for public officials who aid and abet in tax evasion.
A thesis submitted to the department of accounting and finance kwame nkrumah university of science and technology for the award of a master of science degree in accounting and finance