The Effect of Taxation On the Performance of Business: A Case Study of Mukw Ano Kamp Ala

TABLE OF CONTENTS

DECLARATION .............................................................................................................................. i

APPROVAL ........................................................................................................................... ;· ........ ii

DEDICATION ................................................................................................................................ iii

ACKNOWLEDGEMENT .............................................................................................................. iv

LIST OFT ABLES ........................................................................................................................ viii

LIST OF FIGURES ........................................................................................................................ ix

ABSTRACT···································································································································· X

CHAPTER ONE .............................................................................................................................. l

INTRODUCTION ........................................................................................................................... 1

1.1 Back ground ............................................................................................................................... 1

1.1.1 Historical perspective ............................................................................................................. 1

1.1.2 Conceptual background .......................................................................................................... 2

1.1.3 Contextual perspective ........................................................................................................... 3

1.1.4 Theoretical perspective ............................................................................................................ 3

1.2 Statement of the problem ........................................................................................................... 4

1.3 Objectives/purpose .................................................................................................................... 4

1.4 Research questions .................................................................................................................... 5

1.5 Scope ......................................................................................................................................... 5

1.5.1 Geographical Scope ................................................................................................................ 5

1.5.2 Time scope .............................................................................................................................. 5

1.5.3 Content Scope ......................................................................................................................... 5

1.6 Significance ............................................................................................................................... 6

1.7 Conceptual frame work ............................................................................................................. 7

CHAPTER TWO ................................................................................................................. 8

LITERATURE REVIEW ···••e••···· ···················••a••····································••oooo,00100101010••········· 8

2.0 Introduction ............................................................................................................................... 8

V

2.1 Theoretical review ..................................................................................................................... 8

2.2 The concept of taxation ............................................................................................................. 9

2.2.1 Tax .......................................................................................................................................... 9

2.2.2 Classification of taxes ........................................................................................................... 10

2.2.3 Purpose of taxation ............................................................................................................... 10

2.3 Tax policy ................................................................................................................................ 11

2.4 Approaches to tax administration ............................................................................................ 12

2.5 Tax payer's knowledge ............................................................................................................ 12

2.6 Small scale and medium enterprises ........................................................................................ 13

2.6.1 Performance of business enterprises .............................................................................. : ...... 14

2. 7 Taxation and performance of business enterprises .................................................................. 14

2. 7 .1 Taxation and profitability of business enterprises: ............................................................... 14

2.8 Impact of taxation on profitability, productivity, growth and innovativeness of a business

enterprise ....................................................................................................................................... 15

2.9 Conclusion ............................................................................................................................... 16

CHAPTER THREE•••••••••••••••••••••••••11•••••••11••••• .. ••11••••••eeo••••••••••••••eoeooooo•o•oeooeoeeoooooeoeooe11ooooooe•••o 17

METHODOLOGY , ............................................................................................................. 17

3.0 Introduction ............................................................................................................................. 17

3 .1 Research design ....................................................................................................................... 17

3 .2 Study population ...................................................................................................................... 17

3.3 Sampling, ................................................................................................................................. 17

3.3.1 Sample design, ............................................................................................................... : ...... 17

3 .3 .2 Sample size ........................................................................................................................... 18

3.4 Study variable .......................................................................................................................... 18

3 .5 sources of data, there are two sources of data used for research purposes .............................. 18

3.5.l Secondary data collection, .................................................................................................... 18

3.5.2 Primary Data collection ........................................................................................................ 18

3.6 Methods of data collection ...................................................................................................... 19

vi

3.6.1 Questionnaires: ..................................................................................................................... 19

3.6.2 Interviews: ............................................................................................................................ 19

3.7 Data analysis ..................................................................................................................... , ....... 19

3 .8 Data presentation ..................................................................................................................... 19

CHAPTER FOUR ••e••··········································••e••····················•e••·········•ooe,10,00,,,e,,, ........ 20

DATA ANALYSIS AND PRESENTATION ··••e••··················••n••·······••o••···························· 20

4.0 Introduction ............................................................................................................................. 20

4.1 Demographic factors ................................................................................................................ 20

4.2 Performance ofbusiness .......................................................................................................... 26

4.3 Taxation and profitability, productivity, growth and innovation of the business .................... 30

CHAPTER FNE .................................................................................................... "············ 39

CONCLUSIONS AND RECOMMENDATIONS ............................................................... 39

5.0 Introduction ............................................................................................................................. 39

5.1 Summary .................................................................................................................................. 39

5.2 Conclusion ............................................................................................................................... 40

5.3 Recommendations ................................................................................................................... 40

REFERENCES .............................................................................................................................. 42

APPENDICES ............................................................................................................................... 43

Appendix I: (Questionnaire) .......................................................................................................... 43

Appendix II: Gant chart ................................................................................................................. 47 ..

Appendix III: Budget ..................................................................................................................... 48