Effect Of Multiple Taxation On The Survival Of Small Scale Enterprises

Project and Seminar Material for Economics

Project and Seminar Material for Economics


Abstract


This study was undertaken to investigate the implication of multiple taxation on the performance of small scale enterprises in Asaba, Delta State. The objective of the study was to determine the extent to which multiple taxation affect the profitability and reinvestment rate of small scale enterprises. Data were collected from primary source using questionnaires. Survey research design was adopted. The hypotheses were tested using chi-square statistic. Result obtained show that most small scale enterprises surveyed were faced with the problem of high tax rates, complex tax regulations and lack of proper enlightenment or education about tax related issues.

Although, there is a general perception that tax is an important source of fund for development of the economy and provision of social amenities, this study shows that multiple taxation affects the performance of small scale enterprises. In order to obtain a vibrant and flourishing small scale enterprises sector, the tax policy needs to be reviewed such that it will neither be an encumbrance to the small scale enterprises nor discourage voluntary compliance. A suggested solution is by increasing tax incentives through reducing tax rates and increasing tax authorities’ support services through the provision of machinery for easier assessment of profit from small scale enterprises.


Chapter One


1.0 Background Of Study

1.1 Statement Of The Problem

There are lots of problems facing small scale enterprises world over. Although some of these problems are peculiar to many countries, the challenges faced by small scale enterprises in different countries and geopolitical divisions are basically the same. A study carried out by the Federal Office of Statistics shows that in Nigeria, small scale enterprises make up 80% of the economy (Ariyo, 2005). In spite of this importance, the mortality rate is very high as stated in Small and Medium Enterprise Development Agency of Nigeria (SMEDAN). SMEDAN has reported that about 80% of small scale enterprises in Nigeria die before their 5th anniversary. Among the factors responsible for these untimely shut-down are tax-related issues which are: (1) multiple taxations (2) high tax rates (3) low efficiency(4) high collection charges (5) low profitability etc.

Furthermore, owing to the compulsoriness of taxation as a charge against income and properties of individuals, partnerships, small scale enterprises and corporate bodies in the country, there has been an ample quest by the Nigerian government to increase the rate of some of the existing taxes as a means of generating additional revenue. This mostly affects small scale enterprises that are struggling to stay afloat in the business environment who still have to pay tax out of the little profit they make.


1.2 Objectives Of The Study

The broad objective of the study is to examine the implication of multiple taxations on the performance of small scale enterprises in Asaba, Delta State.

The specific objectives include;
  1. To ascertain whether there is a significant relationship between multiple taxations on the profit of small scale enterprises
  2. To determine if there is a relationship between multiple taxations on the reinvestment rate of small scale enterprises.
  3. To ascertain whether there is a relationship between multiple taxation on the growth of small scale enterprises.
  4. To determine if there is a relationship between multiple taxations on the productivity of small scale enterprises.

1.4 Statement Of Hypotheses

In order to carry out this study; the following research hypotheses were formulated. These hypotheses were structured in both null and alternative forms as follows:

  1. Ho1: There is no significant relationship between multiple taxations and the profit of small scale enterprises.
    HA1: There is a significant relationship between multiple taxations and the profit of small scale enterprises.
  2. H02: There is no significant relationship between multiple taxations and the reinvestment rate of small scale enterprises.
    HA2: There is a significant relationship between multiple taxations and the reinvestment rate of small scale enterprises
  3. H03: There is no significant relationship between multiple taxations and the growth of small scale enterprises.
    HA3: There is a significant relationship between multiple taxations and the growth of small scale enterprises.
  4. Ho4: There is no significant relationship between multiple taxations and the productivity of small scale enterprises.
    HA4: There is a significant relationship between multiple taxations and the productivity of small scale enterprises.

1.5 Significance Of The Study

The finding from this study will be of good benefit to the general Nigerian populace and the business community as it will help the tax payers to have a deep understanding of their obligations and the need to meet such duties on tax liabilities. Government and its agencies on their own part will equally see the need for effective planning, administration and collection of taxes and also providing incentive for tax payers so as to limit the problem of tax avoidance and evasion hence, achieving the overall macro-economic goals of the country.

Finally, it could serve as a possible benchmark for other further advanced studies in this regard.


1.6 Scope Of The Study

For the purpose of achieving acceptable and realistic results, this study is primarily focused on small scale enterprises in Asaba, Delta State.


Project Material Download

5,000 5000

The Complete Material Will Be Sent to You in Just 2 Steps

Quick & Simple…


Step One Purchase

Make Payment (Through Transfer) of ₦5,000 to Any of the Account Below

Access Bank PlcAcc No: 0811003731
Samphina Academy
Current Account
Zenith BankAcc No: 1225513212
Samphina Academy
Current Account

Or CLICK HERE To Pay With Debit Card


FOR STUDENTS OUTSIDE NIGERIA
CLICK HERE To Purchase Material ($15)
FOR GHANIAN STUDENTS
Make Payment of 120 GHS to 0553978005 | Douglas Cloud Osabutey | MTN MoMo

Step Two Purchase

Send the Following Details on WhatsApp ( 08143831497) After Payment

  1. Payment Details

  2. TOPIC: Effect Of Multiple Taxation On The Survival Of Small Scale Enterprises

The Complete Material Will Be Sent To You On WhatsApp After Receiving Your Details
T & C Apply


  Contact Our Help Desk


Need a Different Topic? Perform a Quick Search



List of Related Works

Click on Any Topic to Preview the Content

samphina.academy

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.