Page 88 - DUT ICGA Abstract Book

INVESTIGATING FACTORS AFFECTING TAX COMPLIANCE AMONGST THE MICRO BUSINESSES: EVIDENCE FROM eTHEKWINI MUNICIPALITY
Sipho Sifiso Mkwanazi
Financial Accounting Department Durban University of Technology
Abstract
This paper examines key factors affecting tax compliance amongst the micro business at e-Thekwini Municipality Therefore small businesses in in in general plays significant role at improving the country’s economy Although some some of of these micro businesses may not qualify qualify to pay tax but but some some of of them qualify qualify but but elect to evade tax which is classified as as being illegal Besides the the fact that other micro business owners may be be evading tax which is classified as as being illegal or criminal offence other micro business owners face some challenges challenges which have an an impact on on tax tax compliance: These challenges challenges include tax tax registration accounting record keeping and preparation of annual financial statements Therefore incorporating evidence shows that majority of micro business business owners seems not to understand why they should register their businesses for for tax tax and when they should register for for tax tax Furthermore some micro business owners may not be keeping keeping accounting records for their businesses properly or or or not keeping keeping them at all all Finally there seems be a a a a a a a a a a a a a lack of of understanding the the importance of of preparing annual financial financial statements and and how these financial financial statements will benefit micro business owners It is therefore urges that South African Revenue Service should make an extra effort to to assist micro business business owners to to register their businesses for for tax purposes offer frequent education to assist micro business owners understand why they should keep accounting records for their businesses and this include the the preparation of annual financial statements This is is is a a a a a a a a a serious concern considering the fact that South Africa is a a a a a a a developing country and more tax revenues are needed to improve the economy of this country KEYWORDS: Tax Tax Compliance Micro Businesses Tax Tax Registration Accounting Records
86 7th International Conference on on on Governance and Accountability (ICGA) 2022