Browsing by Author "Shihwandu, Landuleni"

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    Determinants of tax evasion among small and medium enterprises in Windhoek
    (University of Namibia, 2021) Shihwandu, Landuleni; Fombang, Mccpowell
    Today it is widely accepted that Small and Medium Enterprises (SMEs) are the essential catalysts for the economic development of any country; however, researchers have a growing concern on the determinants of tax evasion among SMEs. Using a mixed method design, the study aimed to assess the determinants of tax evasion among SMEs in Windhoek. A questionnaire was used to interview the respondents who own SMEs in Windhoek. Data was entered and analysed in SPSS. Descriptive statistics and regression were used to analyse the data. The study revealed that the economic determinants that influence the tax evasion by SMEs in Windhoek are: penalties, perception on governn1ent spending and fmancial constraints. Tax mentality and tax morale, perception on equity and fairness of the tax system and attitudes of the taxpayer are the non-economic determinants that influence tax evasion. The study found that age, marital status and education has effects on tax evasion. In the study, the researcher also discovered that taxpayers have a negative attitude towards taxation. The study recommends that govermnent must give the consumer a proper subsidy under a competitive firm's market, the consumer will voluntarily and fully declare unit tax so that the firm cannot cheat, and that the cheating and auditing costs can be saved, thus Pareto improving and efficient taxation without evasion becomes practicable. Government should understand the nation's behaviour towards taxes and through the Ministry of Inland Revenue set up strategies that would encourage and enable start up SMEs to pay tax