Page 90 - DUT ICGA Abstract Book

THE IMPLICATIONS OF TAX COMPLIANCE BURDEN ON ON SMALL AND MEDIUM ENTERPRISES IN DURBAN
Mary Mutanda
Durban University of Technology Email: marym@dut ac za
Lulu F Jali
Durban University of Technology Email: jalil@dut ac za
Abstract
Background: The main goal of the the South African government’s ‘New Growth Path’ is the the creation of of employment The small business sector sector is the the prevalent sector sector of of the the economy that can aid with accomplishing this this goal However this this sector’s development is is is is impeded by tax compliance regulations Throughout 2017 small businesses in in in in in KwaZulu-Natal declined by 13 5% SME growth index indicates that 40% of SMEs in in in SA view burdensome regulatory costs as the the the key factor inhibiting their growth and the the the burden burden has increased year year on year year and tax compliance costs remain regressive placing a a a a a a a a a a a greater burden burden on small businesses Significance: There is a a a a a a a a a substantial shortage of of information relating to the costs of of tax compliance for for small businesses The findings may assist owners in fin in in in understanding various tax compliance issues and and this will be pivotal in in their business development and sustenance Aim: The aim of of this study is is to diagnose and and understand the the magnitude of of the the tax compliance burden for SMEs SMEs in in in Durban achieved through investigating the implications of tax compliance burden on on SMEs SMEs evaluating the the the efficiency of the the the current compliance tax return system for SMEs determine the the the optimum method to to alleviate SMEs tax tax compliance compliance burden burden and recommend ways to to ease tax tax compliance compliance burden burden on SMEs Methods: Quantitative Cross-sectional and Survey research methods were used as they enabled the the researcher to evaluate and assess a a a a a a a a a a a a a range of variants simultaneously among small businesses in in Durban Findings: 60% of the respondents would prefer lower taxes and and simpler tax tax regime and and that a a a a a a a large portion of resources is is dedicated to tax tax compliance compliance Prior findings confirm that tax tax compliance compliance cost is is substantial regressive and keep increasing causing them administrative burden SA small business tax concessions are lackluster and most owners are are unaware of tax concessions from SARS It is recommended that more effective campaigns by SARS are required to inform small business owners about the concessions available Implications: The implications consist of Tax compliance compliance by small businesses and tax compliance compliance burden on small enterprises KEYWORDS: Tax Tax Tax Tax compliance Tax Tax Tax Tax concessions Tax Tax Tax Tax education Turnover Tax Tax Tax Tax 88 7th International Conference on on on Governance and Accountability (ICGA) 2022