scholarly journals Multiple tax amnesties and compliance in South Africa

2014 ◽  
Author(s):  
◽  
Sachin Vir Junpath
Keyword(s):  
South Africa ◽  
Small Business ◽  
Small Businesses ◽  
Quantitative Research ◽  
Structural Changes ◽  
Tax Compliance ◽  
Research Approach ◽  
Tax Amnesty ◽  
The Government ◽  
New Democracy

South Africa has seen tremendous changes since 1994, from the introduction of a new government to structural changes in tax administration; one of the challenges the government faced in the new democracy, was the restructuring of the tax system. Multiple tax amnesty programs were thus introduced between 1995 and 2010 to provide immunity for limited periods to citizens and small businesses for past non-compliance without being subjected to additional tax, interest, penalties or prosecution. Although extensive research conducted abroad has illustrated the potential problems and complexities that could arise from multiple amnesties, very little research has been conducted in South Africa to evaluate the viability of offering repeated amnesties. The emphasis in this study was therefore on the Small Business Tax Amnesty of 2006, and its primary purpose was to explore the effects that multiple tax amnesties have on compliance and whether it is possible for tax compliance to improve if further tax amnesties are introduced. This study used a quantitative research approach to gather data from 146 respondents from an Audit firm database containing information about taxpayers qualifying as small business who applied for amnesty and taxpayers that did not apply for amnesty between 1 August and 30 June 2007. Analysis of the data revealed that tax amnesties in South Africa should not be offered on a frequent basis to non-compliant taxpayers as it causes non-compliant taxpayers to anticipate further amnesties which could impact negatively on tax compliance as a whole. The findings also indicated that educating taxpayers about tax issues could result in better tax compliance thus contributing to the development of a fair and equitable society. Based on the findings, this study makes recommendations to government, the tax authority and policy makers regarding the effects of multiple tax amnesties.

scholarly journals Small Business and Their Challenges During COVID-19 Pandemic in Developing Countries; in Case of Ethiopia

2020 ◽  
Author(s):  
Abriham Ebabu Engidaw
Keyword(s):  
Developing Countries ◽  
Data Analysis ◽  
Small Business ◽  
Small Businesses ◽  
Quantitative Research ◽  
Secondary Data ◽  
Secondary Data Analysis ◽  
Research Approach ◽  
Non Governmental Organizations ◽  
The Government

Abstract The main objective of this study was to demonstrate the challenges of small businesses during corona virus pandemic in developing countries specifically in Ethiopia. Methodologically, the study deployed secondary data analysis followed descriptive research design. Also, this study was conducted through both qualitative and quantitative research approach. The secondary data analysis result shows that many small and large businesses are suffering challenges and this unprecedented coronavirus crisis has caused destruction for many businesses in the globe and it is challenging to survive with reduced revenue, jobs lost and life slowing down and weak marketing performance even difficult to keep a calm head and their business alive. To support these businesses the government should use different mechanisms by cooperating with wealthy peoples and other non-governmental organizations. Besides, the small business owners should manage expectations and communicate with staff, suppliers, banks, and customers throughout this coronavirus frightening. Reduce expenses, be open to their employees about their finances and keep marketing, use different alternatives to deliver their product and recover from the crisis.

scholarly journals Development of Small Business in the Altay Territory in 2010-2015

2019 ◽  
Vol 26 (8) ◽  
pp. 51-60
Author(s):  
S. V. Lesovykh
Keyword(s):  
Small Business ◽  
Russian Federation ◽  
Small Businesses ◽  
Structural Changes ◽  
Federal District ◽  
Business Development ◽  
The Body ◽  
Information Support ◽  
The Russian Federation ◽  
The Government

The article considers main trends in the small business of the Altay Territory according to results of 2011 and 2016 full-scale observations that follow the results of activities of small and medium-sized enterprises in 2010 and 2015.In the introduction, the author argues the relevance of the economic and statistical analysis of small business, which is essential for its support, as it is one of the government’s priority areas of activity at all levels when it comes to solving problems of socio-economic development. There are characteristics of information support of the analysis related to the implementation of the Federal Law No. 209-FZ from July 24, 2007 «On small and medium business development in the Russian Federation» and the Order of the Government of the Russian Federation No. 201-r from February 14, 2009.The body of the article successively focuses on some areas of analysis - from the general characteristics of small businesses to the factual analysis of individual aspects of activities of the economic entities under review (headcount, wages and revenues, fixed assets and the scope of investment activities). The features of small enterprises development by economic activity are analyzed separately. An integrated indicator of structural differences is used to assess the significance of structural changes in small businesses. A cluster analysis of the Altay Territory municipalities was carried out and they were rated according to the small business development level. In addition, the author assessed the contribution of small business of the Altay Territory to the development of small business in the Siberian Federal District and the Russian Federation.The final section of the article draws conclusions from the authors’ own specific analysis that points to both positive and negative trends in the development of small business in the Altay Territory.

scholarly journals A tax compliance risk profile of guesthouse owners in Soweto, South Africa

2019 ◽  
Vol 11 (1) ◽  
Author(s):  
Marina Bornman ◽  
Pusheletso Ramutumbu
Keyword(s):  
South Africa ◽  
High Risk ◽  
Small Business ◽  
Tax Compliance ◽  
Business Owners ◽  
Risk Profile ◽  
Research Approach ◽  
Small Business Owners ◽  
Guest House ◽  
Compliance Behaviour

Background: A conceptual framework to assess the particular tax situation of small business owners identifies three key aspects that distinguish small business owners’ perceptions of their tax obligation. These aspects are: they are likely to perceive more opportunities not to comply than employed taxpayers; they are likely to lack meaningful taxation knowledge and they are likely to frame the paying of taxes as a loss.Aim: The aim of this article was to sketch a tax compliance risk profile of guest house owners in Soweto to suggest strategies to negate those factors that may negatively influence their compliance behaviour.Setting: Tax compliance is a priority for tax administrations, especially in developing countries such as South Africa where small businesses are a high compliance risk group. Small guest houses’ income is usually variable and/or cash-based and not easily verifiable against third-party data, which creates a high risk of non-compliance.Methods: A mixed methods research approach was followed. Empirical evidence in the form of semi-structured questionnaires administered face-to-face with 23 guest house owners in Soweto was statistically and thematically analysed to compile a profile of the tax compliance risk according to the framework for tax compliance behaviour of small business owners.Results: Factors such as age, gender and tax morale show favourable results for tax compliant behaviour. However, perceptions of fairness, perceived opportunity for non-compliance, knowledge deficits, decision frames, industry, business size and social norms embrace a high risk of non-compliance for this population.Conclusion: Information pointing out the factors that could negatively influence tax compliance behaviour in this population was obtained. Strategies for empowering small business owners to comply voluntarily with their tax obligations are suggested and include, for example, taxpayer education and improved communication efforts from the revenue authority.

scholarly journals Addressing the small business tax compliance burden: Evidence from South Africa

2013 ◽  
Vol 6 (2) ◽  
pp. 263-284
Author(s):  
Sharon Smulders ◽  
Gelishan Naidoo
Keyword(s):  
South Africa ◽  
Small Business ◽  
South African ◽  
Small Businesses ◽  
Tax Compliance ◽  
Compliance Cost ◽  
Record Keeping ◽  
Business Tax ◽  
Cost Studies ◽  
First Time

Small businesses have the potential to grow the economy, generate jobs and reduce poverty, but they face many constraints including high tax compliance costs and burdens. A comparison of the findings and recommendations made in small business tax compliance cost studies conducted in South Africa with initiatives introduced by the South African Revenue Service (SARS), substantiated by consultations with a SARS and a South African Institute of Chartered Accountants official, reveals that SARS has, in most cases, attempted to address the tax compliance burdens identified in these studies. However, SARS has only partially addressed the complexity of the tax law, the lack of software to assist small businesses with their record-keeping and the compliance burden associated with provisional tax. SARS has failed to address the need for a threshold below which no small business tax return is required to be submitted, the inclusion of tax in the school syllabus, the requirement for first-time offenders to attend courses instead of raising penalties and the need for a reduction in the rates of interest and penalties raised by SARS. These initiatives should be considered by SARS and it is recommended that further research into the success and effectiveness of all the initiatives already introduced by SARS be performed.

scholarly journals Addressing the small business tax compliance burden: Evidence from South Africa

2013 ◽  
Vol 6 (1) ◽  
pp. 33-54 ◽  
Author(s):  
Sharon Smulders ◽  
Gelishan Naidoo
Keyword(s):  
South Africa ◽  
Small Business ◽  
South African ◽  
Small Businesses ◽  
Tax Compliance ◽  
Compliance Cost ◽  
Record Keeping ◽  
Business Tax ◽  
Cost Studies ◽  
First Time

Small businesses have the potential to grow the economy, generate jobs and reduce poverty, but they face many constraints including high tax compliance costs and burdens. A comparison of the findings and recommendations made in small business tax compliance cost studies conducted in South Africa with initiatives introduced by the South African Revenue Service (SARS), substantiated by consultations with a SARS and a South African Institute of Chartered Accountants official, reveals that SARS has, in most cases, attempted to address the tax compliance burdens identified in these studies. However, SARS has only partially addressed the complexity of the tax law, the lack of software to assist small businesses with their record-keeping and the compliance burden associated with provisional tax. SARS has failed to address the need for a threshold below which no small business tax return is required to be submitted, the inclusion of tax in the school syllabus, the requirement for first-time offenders to attend courses instead of raising penalties and the need for a reduction in the rates of interest and penalties raised by SARS. These initiatives should be considered by SARS and it is recommended that further research into the success and effectiveness of all the initiatives already introduced by SARS be performed.

scholarly journals Do South African Small Businesses Prefer Conservative Tax Advice To Aggressive Tax Advice?

2012 ◽  
Vol 11 (6) ◽  
pp. 697
Author(s):  
Melissa Lubbe ◽  
Gerhard Nienaber
Keyword(s):  
South Africa ◽  
Small Business ◽  
South African ◽  
Tax Evasion ◽  
Small Businesses ◽  
Tax Compliance ◽  
Rural South ◽  
Tax Practitioners ◽  
Tax Relief ◽  
Compliance Behaviour

Taxpayers relationship with tax practitioners may influence tax compliance behaviour. International research has been inconclusive on whether taxpayers prefer conservative tax approaches or more aggressive approaches. There has been only limited research on taxpayers preferences in South Africa. Several tax relief measures are available to South African small businesses as growing enterprises, but such entities may lack skilled tax staff and they therefore rely on tax practitioners. The first objective of this study is to determine whether such taxpayers prefer conservative or aggressive tax advice from practitioners. The second objective is to determine whether small business taxpayers would continue to use their tax practitioners services if they disagree with a suggested tax approach. Questionnaires were sent to 50 small businesses in a rural South African town. The data showed that most participating small business taxpayers prefer conservative advice but will agree with the tax practitioner, irrespective of the type of tax advice offered. As long as the advice does not involve tax evasion, they prefer to retain a tax practitioners services irrespective of the type of advice and their (dis)agreeing with it.

PENGARUH PROGRAM TAX AMNESTY TERHADAP FAKTOR-FAKTOR YANG MEMENGARUHI KEMAUAN MEMBAYAR PAJAK (STUDI PADA WAJIB PAJAK ORANG PRIBADI PELAKU USAHA DI WILAYAH KPP PRATAMA KOTA/KAB BOGOR)

2019 ◽  
Vol 4 (2) ◽  
pp. 267-284
Author(s):  
Dinda Hawa ◽  
Yohanes Indrayono ◽  
Haqi Fadillah
Keyword(s):  
Willingness To Pay ◽  
Citizen Participation ◽  
Quantitative Research ◽  
Tax Compliance ◽  
Sampling Technique ◽  
The State ◽  
Primary Data ◽  
Infrastructure Development ◽  
Tax Amnesty ◽  
The Government

Taxes are the largest source of funding for the state infrastructure development, this requires the citizen participation for their implementation. This can be shown by the obedience and the willingness to pay taxes. Obedience is shown by the willingness of the taxpayer to register, have NPWP, calculate and pay taxes, and also report SPT. Each year the compliance ratio shows an increase, but the realization of SPT is far from the amount of the taxpayer that must submit SPT. This indicates that taxpayers do not have the factors of willingness to pay taxes, especially a lot of taxpayers who save and distribute their funds abroad. So the government issued tax amnesty policy to grow the state revenue, increase tax compliance and taxpayer's willingness to pay and report tax. This study aims to knowing and explaining the effect of tax amnesty program to the willingness of paying tax of the individual entrepreneur tax payers that registered at KPP Kota/Kabupaten Bogor. This study was a quantitative research that used primary data obtained through questionnaire distribution to 100 respondents who are individual entrepreneur tax payer in the city and/or district of Bogor wthe the sampling technique used in this study is convenience sampling or also known as accidental sampling. The data was analyzed by multiple regression using PLS 3.0 for student programs. The result showed that based on Ha accepted, it indicates that there is a positive influence between the tax amnesty program variable on the willingness of paying tax variables, that is tax amnesty has a positive effect on awareness of paying taxe, aknowledging and understanding of taxation regulation, good perception on tax system effectiveness, and tax sanction.  This means that tax amnesty program responded positively by the increasing of willingness to pay taxes.

scholarly journals Tax compliance: an administrative burden for small business enterprises (SME’S)

2016 ◽  
Vol 13 (4) ◽  
pp. 350-361
Author(s):  
Catherine Mpolokeng Sephapo ◽  
Michael Colin Cant ◽  
Johannes Arnoldus Wiid
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Tax Compliance ◽  
Research Approach ◽  
Regulatory Processes ◽  
Policies And Procedures ◽  
Tax Laws ◽  
Red Tape ◽  
Business Enterprises ◽  
The Cost

As is the case in many economies, tax laws are sometimes very complicated and difficult for SME’s to understand and to implement. Tax laws change every year, impacting on the business, its operations and its profitability. It is also a fact that the more a government overspends, misappropriate funds and overall lack fiscal control, the more they will try and recover these “losses” from the taxpayers - including SME’s. The main purpose of the study is to investigate whether small business enterprises are burdened by the administrative processes required in South Africa to comply to with the tax regulations of the country. The South African government has strict policies and procedures in place that all businesses should adhere to. However, the key challenge that many SME’s still face is that of red tape and burdensome regulatory processes and procedures. In an attempt to establish the main objective of the study, a quantitative approach research approach was employed and a significant amount of small businesses were surveyed. From the findings it is clear that the respondents of the survey agree that the tax services registration documentation and process should be made easier. The submission of the registration documents, once understood and completed, is not a big problem for the respondents. The cost of registration does not seem to be a major burden to the SME’s

QUINTILE RANKING OF SCHOOLS IN SOUTH AFRICA AND LEARNERS’ ACHIEVEMENT IN PROBABILITY

2019 ◽  
Vol 18 (1) ◽  
pp. 106-119
Author(s):  
UGORJI I. OGBONNAYA ◽  
FRANCIS K. AWUAH
Keyword(s):  
South Africa ◽  
Public Schools ◽  
Quantitative Research ◽  
Statistics Education ◽  
Bloom's Taxonomy ◽  
Research Approach ◽  
Learner Achievement ◽  
Bloom’S Taxonomy ◽  
Study Results ◽  
The Government

There is some disparity in the quality of education among the various races and provinces in South Africa. Since the dawn of democracy in 1994, the government has tried to bridge the gap using quintile categorisation of public schools and its concomitant funding. The categorisation is based on the socioeconomic status of the community in which the schools are located. This study investigated the achievement of learners in the first four quintiles from one school district on the topic of probability. The study employed a quantitative research approach and used Bloom’s taxonomy as the conceptual framework. A total of 490 Grade 12 learners from seven schools participated in the study. Results showed that learners in Quintile 4 had significantly higher achievement scores than learners in the lower quintiles at all levels of Bloom’s taxonomy except synthesis. Counter intuitively, Quintile 1 students had higher achievement than those in Quintiles 2 and 3 at all cognitive levels of Bloom’s taxonomy, with the exception of synthesis. The educational implications of the findings are discussed in relation to quintile ranking of schools and learner achievement. First published May 2019 at Statistics Education Research Journal Archives

scholarly journals An exploration of women's workplace experiences in the South African mining industry

2020 ◽  
Vol 120 (8) ◽  
Author(s):  
S. Mangaroo-Pillay ◽  
D. Botha
Keyword(s):  
South Africa ◽  
South African ◽  
Quantitative Research ◽  
Mining Industry ◽  
Research Approach ◽  
The South ◽  
Workplace Experiences ◽  
Petroleum Resources ◽  
The Government ◽  
Practical Recommendations

SYNOPSIS Historically, the mining industry, on a global level, was male-dominated, as many governments had prohibited women from working at mines, particularly underground. In South Africa, the government introduced the Mineral and Petroleum Resources Development Act (No. 28 of 2002) (MPRDA) and the Broad-based Socio-economic Empowerment Charter to address the imbalances and rectify previous inequalities in the mining industry. Since the inception of MPRDA, women's representation in the South African mining industry has increased, from 3% in 2002 to 15% in 2018. Although government has good intentions, gender equality in the mining industry remains a challenge. Research on women employed in South African mines revealed that women still face barriers to some extent. This research explores women's current workplace experiences in the South African mining industry. A literature review and an empirical study were conducted. The study followed a positivistic research approach, and a quantitative research design was used. Self-administered questionnaires were distributed at the 8th Annual Women in Mining Conference in February 2017. Based on the data obtained, it became evident that several aspects must still be addressed to successfully accommodate women in the mining workplace. The study offers practical recommendations that can be implemented by mining organizations to improve women's workplace experiences in order to encourage and foster transformation in the mining industry. Keywords: gender, mining industry, mining legislation, South Africa, women in mining.

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