Abstract:
ABSTRACT
The study investigated the effectiveness of withholding tax laws and regulations
enforcement within Bolgatanga Municipality. Methods were applied that
included both quantitative as well as qualitative methods. There were 185 Small
and Medium Scale Enterprises (SMEs) in Bolgatanga Municipal selected to
participate in the research using a simple random sample approach Another
method was used to choose seven withholding tax agents and two GRA
officials. The major data source was a questionnaire. Statistical software called
as Statistical Product for Service Solution was used to analyse the survey data,
which included percentages, frequencies and mean and standard deviations.
Rather of relying on interview instructions, theme analysis was employed to
analyse the qualitative data acquired. According to the research, respondents
saw withholding tax as a hardship or a high tax that would deter them from
starting or expanding their firms. In addition, there was a lack of public
knowledge about withholding taxes and a bad relationship between tax officials
and recipients. Bolgatanga's small and medium-sized enterprises (SMEs) are
unfamiliar with withholding tax. Accurate withholding tax collection may be
hindered by a lack of education on withholding tax, the GRA office being
distant from the taxpaying public, the high illiteracy rate among merchants and
the difficulties in identifying taxpaying public. Training workshops or seminars
or conferences for the taxpaying public on withholding tax are advised by GRA
authorities in order to educate and teach taxpaying public on how to calculate
it, submit it, the difference between withholding tax and VAT among other
issues.
