Correlates of Tax Compliance of Small and Medium Size Businesses in Cameroon
Taxation provides a predictable and stable flow of revenue to finance development objectives. This is important in a country like Cameroon that has serious challenges with meeting its development objectives. Small and medium enterprises (SMEs) are significant for economic growth in the country,...
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| Format: | Article |
| Language: | English |
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University of Primorska
2015-12-01
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| Series: | Managing Global Transitions |
| Subjects: | |
| Online Access: | http://www.fm-kp.si/zalozba/ISSN/1581-6311/13_389-413.pdf |
| _version_ | 1818129949896212480 |
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| author | Oludele Akinloye Akinboade |
| author_facet | Oludele Akinloye Akinboade |
| author_sort | Oludele Akinloye Akinboade |
| collection | DOAJ |
| description | Taxation provides a predictable and stable flow of revenue to finance development
objectives. This is important in a country like Cameroon that
has serious challenges with meeting its development objectives. Small and
medium enterprises (SMEs) are significant for economic growth in the
country, contributing as much as about 22 percent of the gross domestic
product. SMEs generate taxable incomes. They also collect employment
and value added taxes on behalf of the government. Taxation, however, imposes
high cost to small businesses. SMEs are less tax compliant in comparison
to large businesses. SMEs are considered the ‘hard to tax group
from the informal sector.’ As such, the literature suggests that only a fraction
of their taxable incomes is reported to tax authorities. Against this
background, factors that correlate with tax compliance of 575 small and
medium size companies in Cameroon are discussed from a survey of companies
in the manufacturing and wholesale sectors. High registration cost
and time-consuming processes promote tax non-compliance. The perception
that tax system is corrupt discourages registration and filing compliance.
When there are too many compliance hurdles, the probability of filing
compliance is reduced. However, a fair and static system encourages
filing and registration compliance. A clear and consistent tax system promotes
filing compliance. Authorities that understand their responsibilities
and are willing to respond to enquiries during the registration process promote
tax compliance in general. |
| first_indexed | 2024-12-11T07:57:17Z |
| format | Article |
| id | doaj.art-7dc17b967ac94f22947dd792f08ef38b |
| institution | Directory Open Access Journal |
| issn | 1581-6311 1854-6935 |
| language | English |
| last_indexed | 2024-12-11T07:57:17Z |
| publishDate | 2015-12-01 |
| publisher | University of Primorska |
| record_format | Article |
| series | Managing Global Transitions |
| spelling | doaj.art-7dc17b967ac94f22947dd792f08ef38b2022-12-22T01:15:13ZengUniversity of PrimorskaManaging Global Transitions1581-63111854-69352015-12-01134389413Correlates of Tax Compliance of Small and Medium Size Businesses in CameroonOludele Akinloye Akinboade0Gordon Institute of Business Science, South AfricaTaxation provides a predictable and stable flow of revenue to finance development objectives. This is important in a country like Cameroon that has serious challenges with meeting its development objectives. Small and medium enterprises (SMEs) are significant for economic growth in the country, contributing as much as about 22 percent of the gross domestic product. SMEs generate taxable incomes. They also collect employment and value added taxes on behalf of the government. Taxation, however, imposes high cost to small businesses. SMEs are less tax compliant in comparison to large businesses. SMEs are considered the ‘hard to tax group from the informal sector.’ As such, the literature suggests that only a fraction of their taxable incomes is reported to tax authorities. Against this background, factors that correlate with tax compliance of 575 small and medium size companies in Cameroon are discussed from a survey of companies in the manufacturing and wholesale sectors. High registration cost and time-consuming processes promote tax non-compliance. The perception that tax system is corrupt discourages registration and filing compliance. When there are too many compliance hurdles, the probability of filing compliance is reduced. However, a fair and static system encourages filing and registration compliance. A clear and consistent tax system promotes filing compliance. Authorities that understand their responsibilities and are willing to respond to enquiries during the registration process promote tax compliance in general.http://www.fm-kp.si/zalozba/ISSN/1581-6311/13_389-413.pdftax compliancesmall and medium size enterprisestax administrationCameroon |
| spellingShingle | Oludele Akinloye Akinboade Correlates of Tax Compliance of Small and Medium Size Businesses in Cameroon Managing Global Transitions tax compliance small and medium size enterprises tax administration Cameroon |
| title | Correlates of Tax Compliance of Small and Medium Size Businesses in Cameroon |
| title_full | Correlates of Tax Compliance of Small and Medium Size Businesses in Cameroon |
| title_fullStr | Correlates of Tax Compliance of Small and Medium Size Businesses in Cameroon |
| title_full_unstemmed | Correlates of Tax Compliance of Small and Medium Size Businesses in Cameroon |
| title_short | Correlates of Tax Compliance of Small and Medium Size Businesses in Cameroon |
| title_sort | correlates of tax compliance of small and medium size businesses in cameroon |
| topic | tax compliance small and medium size enterprises tax administration Cameroon |
| url | http://www.fm-kp.si/zalozba/ISSN/1581-6311/13_389-413.pdf |
| work_keys_str_mv | AT oludeleakinloyeakinboade correlatesoftaxcomplianceofsmallandmediumsizebusinessesincameroon |