Abstract:
This study examines the factors that influence tax evasion among Small and Medium Enterprises in Ghana. It examines the nature of SME activities in the country, and looked at the reasons for tax evasion among SMEs. For the objectives to be achieved survey method was adopted and a questionnaire was designed and administered to two hundred and forty (240) taxpayers. The study concluded that tax evasion rate among SMEs was at the high side and also the nature of the SMEs does not affect tax evasion. Factors such as high tax rates, ignorance of taxpayers,' inadequate tax education, inadequate tax personnel, poverty, misuse of tax revenue, and loose tax laws contribute to tax evasion among SMEs. The study recommends intensification of tax education, transparent revenue management, reasonable tax rate, enhanced tax payer awareness, poverty alleviation, as means of reducing tax evasion and challenges of taxing Small and Medium Enterprises in the Country.
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