Impact of taxation on small and medium scale business in nigeria pdf

Small and medium sized enterprises smes are important for their contribution to employment, innovation, economic growth and diversity. Brown 2007 identified competition as one of the major hindrances to the growth of small firm. Research objectives the research objectives are as follows. The impact of taxation on small and medium scale buisiness in nigeria. To assess the impact of taxation on small and medium scale business enterprises in nigeria. Taxation of small and medium enterprises semantic scholar. What are the effects of taxation in small business enterprise.

Problems of establishing small business enterprise in nigeria. To evaluate the long term benefit of granting tax incentives to small and medium enterprises by the government in the economy. The most frequent upper limit designating an sme in nigeria is 5250 employees. Over the years, small and medium scale enterprises have been an avenue of job creation and the empowerment of nigerias citizen, providing about. Small scale enterprises form the core of majority of the worlds economic. Impact of taxation on small and medium scale businesses in. Davidsson 1989 noted that an unfavorable tax system, complicated rules. Effect of multiple taxation on smallmedium enterprises in nigeria. Society for business research promotion 2 cease to exist when taken over by another firm. The study was carried out to find out the impact of taxes on small and medium scale business enterprises in nigeria.

Over the years, small and medium scale enterprises smes have been an avenue of job creation and the empowerment of nigerian citizens, providing about 50% of all jobs in nigeria and also for local capital formation. Impact analysis of tax policy and the performance of small and medium scale enterprises in nigerian economy. The study aimed at assessing the performance of business enterprises in nigeria, finding out if tax payers are aware of all their tax obligations, policies and. However, the mortality rate of these small firms is very high. Effects of multiple taxation on the performance of small. Building up a domain helpful for smes development while guaranteeing charge c. The impact of accounting system on the performance of small and medium scale enterprises in nigeria a survey of smes in oyo statenigeria. The impact of taxation on small and medium scale buisiness in. Abstract this is a research work on the impact of taxation on small scale business in a developing economy.

Small and medium enterprises smes form the core of majority of the worlds. Pdf the study examined the effects of multiple taxation on the growth of small and medium enterprises smes in nigeria. However, it is accepted that there are only a small proportion of new firms that grow to employ 50 or more workers. Abstract this is a research work on the impact of taxation on smallscale business in a developing economy. Establishing the factors affecting the growth of small and. Chapter one of impact of taxation on small and medium scale business in nigeria. Ideally, taxes should be neutral with regard to the business decisions of smes, including decisions related to their creation, form and growth. This study is on the quantitative impact of small and medium scale enterprises smes on nigerias economic growth performance for the sample period 1993 to 2011. Every business operates within an economic environment and are therefore susceptible to the changes that takes place in the economic policies overtime. The higher is the share of small and medium businesses in the economy, the higher productivity can be potentially realized with the sme sector. In this paper, the impact of two current policies in ukraine on sme taxation is analyzed. Impact of taxation on small and medium scale business in. Pdf effects of multiple taxation on the performance of.

Tax payment is the demonstration of such a desire, although some income earners see it as a means of exploitation by the government. Impact analysis of tax policy and the performance of small and medium scale enterprises in nigerian economy stephen i. Get free research paper on the impact of government policy on the growth of small and medium scale business in nigeria project topics and materials in nigeria. Problems and prospects, was undertaken to find out if the sme subsector in nigeria has performed its critical role of driving the countrys industrial transformation and development as it. The desire to build a civilized country with a strong and sound economy is the desire of every country, including nigeria. It also looked at the impact of multiple taxation on investment decision of smes operators. This study is on the effect of multiple taxation on the performance of small and medium scale enterprises. Government policies that affects small and medium scale. A study carried out by the federal office of statistic shows that in nigeria, small scale enterprises make up of 80% of the economy ariyo, 2005. When the heavy spending during world war ii forced congress to increase very sharply. Among the factors responsible for these untimely closeups are tax related issues, ranging from multiple taxations to enormous tax burdens.

Small business enterprises make a larger contribution pro rata in the economy and with efficient control and management techniques of smes the benefit it gives can be much greater. The econometric technique adopted for the study was multiple regression method based on ordinary least squares technique. This study, small and medium scale enterprises smes in nigeria. Effect of multiple taxation on smallmedium enterprises in nigeria dr. Gordon keith the impact of the federal tax system on small business has been a matter of increasing interest and concern to many persons durinj the last few years. Small and medium enterprises smes and its tax implication. Over the years, small and medium scale enterprises have been an avenue of job creation and the empowerment of nigerias citizen, providing about 50% of all jobs in nigeria and also for local capital formation. Sep 15, 2017 tax assessment can adversely affect many parts of the economy, including impacts on firm creation and on the advancement of little and medium sized undertakings smes. Effects of multiple taxation on the performance of small and. This study is on the effects of multiple taxation on the performance of small and medium scale enterprises smes.

Impact of taxation on the operation of small and medium scale. Small and medium enterprises smes form the core of majority of the worlds economies. Adaramola 2012 defines business as a commercial activity, a means of livelihood. The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. Introduction small and medium enterprises smes form the core of majority of the worlds economies. A study carried out by the federal office of statistics shows that in nigeria, small and medium enterprises make up 97% of the economy ariyo, 2005. Particularly in developing countries the problems of taxing small businesses are welldocumented, but at a smaller scale, problems of tax evasion of small businesses may also be disproportionate in developed economies. The impact of accounting system on the performance of. Businesses in whatever form, size or sector are required by law to comply with all relevant legislation including taxation.

The small scale industries association of nigeria 1973 defined small scale business as those having investment i. Implication of multiple taxation on the performance of small scale enterprises. Effect of multiple taxation on the performance of small. Business, whether small, medium or largescale can be defined as the sum total of activities involved in the creation and distribution of goods and services for private or personal profit isimoya, 2005. Small and medium enterprises small businesses form the core of majority of the worlds economies. This research is based the effects of multiple taxation on smallmedium enterprises in nigeria focused on finding the changes. The relevance of accounting records in small scale business. Apr 07, 2017 the purpose of the study was to evaluate the impact of taxes on small scale business enterprises in nigeria. This makes it highly important for businesses to be informed on various ways these policies affect their sales, profitability and overall objectives. The study aimed at assessing the performance of business enterprises in nigeria, finding out if tax payers are aware of all their tax obligations, policies and problems affecting them as well as their. A study carried out by the federal office of statistics shows that in nigeria, small and medium enterprises make up 97% of the.

This paper discusses the importance of creating taxation systems which promote sme tax compliance. To find out if tax payers are aware of all their tax obligations and policies. Impact analysis of tax policy and the performance of small. In nigeria the importance of small business as a creator of jobs. Get free research paper on impact of multiple taxation on small and medium scale businesses in nigeria project topics and materials in nigeria. Small, medium and microenterprises smmes contribute 36.

The specific objectives of this study were as follows. Small and medium scale enterprises according to akinsulire 2010 accelerate rural development while. Small and medium enterprises sme play an important role in production sector of many developed countries. Gordon keith the impact of the federal tax system on small business has been a matter of in creasing interest and concern to many persons durinj the last few years. Download complete project materials on impact of taxation on the operation of small and medium scale business from chapter one to five with references and abstract. Development of small and medium enterprises is heavily influenced by the level of taxation. Small and medium scale enterprises in nigeria, the.

Effect of multiple taxation on investments in small and medium. This study therefore seeks to assess the essence of keeping accounts in small scale business in nigeria. Health centers, telecommunication, roads, schools and electricity and this have helped to improve the performance of small and medium. In a middleincome country like ghana, the role of smes is critical. Impact of taxation on the operation of small and medium. To ascertain the reaction of the smes to the various. Another problem in taxing small and mediumsized enterprises is tax evasion. Oct 16, 2015 the most frequent upper limit designating an sme in nigeria is 5250 employees. Over the years, small and medium scale enterprises smes have been an avenue of.

The study aimed at assessing the performance of business enterprises in nigeria, finding out if tax payers are aware of all their tax obligations. Factors that affect tax comp liance among small and. Impact of taxation on small and medium scale business in nigeria abstract small and medium enterprises play a very important role in development of the nigerian economy. Effects of multiple taxation on the performance of small and medium scale business enterprises in benue state. Although, government policies may come in different forms, this short article. Problems and prospects, was undertaken to find out if the sme subsector in nigeria has performed its critical role of driving the countrys industrial transformation and development as it has done in other developed countries. Implication of multiple taxation on the performance of. Impact of multiple taxation on small and medium scale. This study examines the impact of the microfinance on growth of the small and medium entrepreneurs smes in morogoro municipality. In nigeria the importance of small business as a creator of jobs, particularly for those with a low skills level, is widely recognized. Small and medium enterprises play a very important role in development of the nigerian economy. The impact of microfinance on small scale business in nigeria ashamu, sikiru o. Pdf the effect of tax payment on the performance of smes. Factors that effect taxation of small and medium sized.

Development plan of 1980 defined a small scale business in nigeria as any manufacturing process or service industry, with a capital not exceeding n150,000 in manufacturing and equipment alone. Taxation of small and medium enterprises by a thesis. The purpose of the study was to evaluate the impact of taxes on small scale business enterprises in nigeria. Effect of multiple taxation on the performance of small and. To ascertain the extent to which small scale business keep accounts of their financial transactions. Impact analysis of tax policy and the performance of small and. Smes are characterized by uncertainty, innovation and evolution. Descriptive statistics was used to study the data collected for this work through a wellstructured questionnaire. This is approved for students in accountancy, business, computer science, economics, engineering, arts. Ocheni1 abstract the mortality rate of small and medium enterprises which make up 95% of the economy is very high and these small and medium enterprises serve as source of employment generation.

Tax assessment can adversely affect many parts of the economy, including impacts on firm creation and on the advancement of little and mediumsized undertakings smes. Taxation plays important role in the development of every economy as well as the growth of small and medium enterprises smes. Another problem in taxing small and medium sized enterprises is tax evasion. The relevance of accounting records in small scale. Relationship between tax policy, growth of smes and the nigerian. Business, whether small, medium or large scale can be defined as the sum total of activities involved in the creation and distribution of goods and services for private or personal profit isimoya, 2005. Impact of taxation on small and medium scale business in nigeria abstract small and medium enterprises play a very important role in. Making up about 97% of the entire economy, they serve as a source of employment generation, innovation, competition, economic dynamism which ultimately lead to poverty alleviation and national growth.