Investigating the Effectiveness of Withholding Tax Laws and Regulations Enforcement Within Bolgatanga Municipality

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.