The effects of non-compliance to taxation and statutory regulations on company financial performance: Case of Small to Medium Enterprises (SMEs) in Harare, Zimbabwe
- Author
- Dozva, Rutendo
- Title
- The effects of non-compliance to taxation and statutory regulations on company financial performance: Case of Small to Medium Enterprises (SMEs) in Harare, Zimbabwe
- Abstract
- The research project focussed on assessing the influence of non-compliance to taxation and statutory regulations on the financial performance of Small to Medium Enterprises in Harare, Zimbabwe. The study found out that Zimbabwe still experiences over 60% non-compliance rates to taxation and statutory regulations. The research was centred on 3 main objectives; to determine the reasons for tax and statutory regulations non-compliance by SMEs in Harare, Zimbabwe, to assess the effects of taxation non-compliance on organizational financial performance in relation to SMEs in Zimbabwe and to identify alternative measures that can be implemented by regulatory authorities to reduce taxation and statutory regulations non-compliance. The study adopted a descriptive research design and the sample of the study was purposively selected from the targeted population. The researcher collected primary data using questionnaires and secondary data was obtained from published sources such as academic journals. The researcher presented, analysed and interpreted the information obtained from participants using bar graphs, tables and pie charts. The results of the study showed that, non-compliance is influenced by tax complexities, company size, and lack of tax knowledge and liquidity crisis. The study also unpacked that due to non-compliance SMEs experience reduction in sales volumes, profits and might face prosecution charges. As a result, the study recommends alternative measures that can be implemented to ensure compliance; tax education, legal legislation and outsourcing consultants.
- Date
- June 2023
- Publisher
- BUSE
- Keywords
- SMEs
- Taxation non-compliance
- Financial performance
- Supervisor
- Mr. Ngwende
- Item sets
- Department of Accountancy