ProjectClue.com WhatsApp or Call Us

projectclue whatsapp icon07030248044

Project Topic:

RENT TAX COMPLIANCE IN GHANA (A CASE STUDY OF BOLGATANGA MUNICIPALITY)

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 69 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   9,231 people found this useful

Project Department:

TAXATION UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

CHAPTER ONE

INTRODUCTION

1.1. Background of the study

The Ghana Revenue Authority (GRA) is stepping up the collection of tax on rent income from owners of residential and commercial properties following the re-launch of the tax in Accra.Though it has been in the statute books since 1973, compliance with the tax, which is charged at 8% of gross rent income, has not been encouraging and the GRA said it will increase efforts to collect the tax, especially since the real estate sector is witnessing a boom.

It has become necessary, after assessing the performance of the tax on rent income as a percentage of total GRA collections, for us to re-strategize to ensure that the tax takes a respectable position among the tax types, said George Blankson, GRAs Commissioner-General. There is a strong believe that there is a boom in the real estate sector. Unfortunately, the tax revenue from this sector does not correspond to the boom we are experiencing. Available data show that the contribution of rent income tax to total direct tax collections was 0.42% in 2011, representing GH15.92 million out of GH3.75 billion in direct taxes. In 2012, the tax contributed 0.32%, representing GH17.48 million out of GH5.4 billion. As a share of total GRA collections, rent income tax registered 0.14% in 2012.

We are very much determined and committed to enhancing the contribution of the tax to total GRA collection in 2013 and beyond, said Mr. Blankson, adding that the Authority will ensure full implementation of the renewed directive by collaborating with public bodies and private organizations to enable it gain access to relevant information for assessment purposes.He said the GRA will engage with institutions such as the Electricity Company of Ghana, Ghana Water Company, the Lands Commission, Ghana Real Estate Developers Association, Ghana Institution of Architects and the Ghana Institute of Engineers who deal with property owners.

Speaking at the event, Minister of Finance Seth Terkper said the re-launch of the tax is timely and has come at a period when the nation needs to mobilize every available tax revenue to cover rising expenditure.He said the 2013 budget is focused on revenue generation through expanding the tax-base and improving the efficiency of tax administration.Any new initiative in this regard is therefore welcome. For me, the re-launch and the emphasis that is being given to the tax on rent income is an indication of the preparedness of GRA to broaden the tax-base. I charge the GRA to come up with many new ideas in this direction, he said.

Even though the housing sector is one area where the tax potential is huge, we have not derived much revenue from this sector for various reasons. Therefore any fresh initiative which aims at breaking the barriers and increasing compliance is very much welcome and appreciated, he added.The rent income tax law, LI 1698, also obliges institutions and corporate bodies to withhold the tax whenever paying rent to property owners.

The GRA said it is targeting companies, financial institutions, partnerships, educational establishments, medical establishments, corporations, government agencies, consular offices, and international organizations in its renewed attempt to improve collection of the tax.

1.2. Statement of the problem

Knowledge about taxation, the benefits of taxation and the dangers of non-compliance remain a key impediment to tax compliance in many countries. Countries such as the US, Canada, Japan, New Zealand, Australia, the UK and Malaysia have all been implementing a continuous tax education for taxpayers and children as future taxpayers (Palil, 2010). Various countries such as the USA, the UK and Australia also have developed interactive websites, disseminated leaflets together with tax returns, opened call centers’, created advertisements or supplied reminders via television and radio (e.g. to remind taxpayers of deadline dates for filings)

1.3   Objectives of the study

1. To ascertain the level of rent tax compliance of the people of BolgatangaMunicipality in Ghana.

1.4   Research questions

1. Do the people of Bolgatanga Municipality comply with rent tax in Ghana

1.5   Research hypotheses

  • : The people of Bolgatanga Municipality do not comply with rent tax in Ghana.
  • : The people of Bolgatanga Municipality do not comply with rent tax in Ghana.

1.6   Significance of the study

Most tenants and landlords in Ghana are avoiding outright non-compliance by not submitting returns or pay taxes at all instead they had irregular payment and tax reduction. This study hope to find throw light on the need for compliance on rent tax as taxation is the primary source of revenue for governments throughout the world to implement their social and political agendas and to deliver services to the citizens

1.7   Scope/Limitations of the study

This study covered the rent tax compliance inBolgatanga MunicipalityGhana.

Limitations of study

  1. Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection through the internet, questionnaire and interview.

Time constraint- The researcher simultaneously engaged in this study with other academic work. This consequently cut down on the time devoted for the research work.

1.8   Definition of terms

Rent: A tenant's regular payment to a landlord for the use of property or land.

Tax: A compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.

Tax Compliance: The action or fact of complying with a wish or command.

 

REFERENCES

Atawodi, W., & Ojeka, S. (2012) Factors That Affect Tax Compliance among Small and Medium Enterprises (SMEs) in North Central Nigeria. International Journal of Business and Management, 7(12), 87-96.

Braithwaite, V. (2003). Perceptions of who‘s not paying their fair share. Australian Journal of Social Issues, 3 (8), 335-362.

Carnes, G. A., & Cuccia, A. D. (1996).An analysis of the effect of tax complexity and its perceived justification on equity judgments. Journal of the American Taxation Association, (18), 40–56

Fraenkel, J.R., & Wallen, N.E. (2000). How to Design and Evaluate Research in Education. New York: McGraw-Hill Publishing Co.

Institute of Economic Affairs (2012). Informal sector and Taxation in Kenya: The Budget Focus Issue No. 29 September 2012.

Get the complete project »


Instant Share On Social Media:


Can't find what you are looking for?
Call (+234) 07030248044.

OTHER SIMILAR TAXATION PROJECTS AND MATERIALS

A COMPARATIVE ANALYSIS OF TAX EFFECTIVENESS IN NIGERIA AND GHANA

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 70 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   3223 engagements

CHAPTER ONE INTRODUCTION BACKGROUND OF THE STUDY From the days of Pharaohs in Egypt to modern day government, tax and taxation has always been part of society. There have being various reasons as t...Continue reading »

A STUDY OF TAX COLLECTION AND REVENUE MOBILIZATION A CASE STUDY OF ENUGU SOUTH LOCAL GOVERNMENT COUNCIL

 Format: M ::   Chapters: 1-5 ::   Pages: 36 ::   Attributes: Table Of Content, Questionnaire, Data Analysis  ::   5460 engagements

ABSTRACT Local government, being the third tier of government, has not performed maximally in the provision of infrastructural development.How can an innovation be introduced towards enhancing effecti...Continue reading »

ADMINISTRATION OF PERSONAL INCOME TAX IN ABIA STATE

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis,Abstract

CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF STUDY Tax which is a major source of public revenue has been defined as compulsory levy imposed on individual and firms by the government. Payment of tax...Continue reading »

ADVANTAGE OF VALUE ADDED TAX IN TERMS OF REVENUE GENERATION

 Format: MS WORD ::   Chapters: 1 - 5  ::   Pages: 69 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   6022 engagements

ABSTRACT The study was focused on the importance of value added tax in terms of revenue generation. A core study of federal Inland Revenue service Enugu office. Data were collected from primary and se...Continue reading »

AN APPRAISAL OF PAY-AS YOU EARN SYSTEM OF TAXATION IN NIGERIA (A CASE STUDY OF NSUKKA LOCAL GOVERNMENT AREA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 31 ::   Attributes: Questionnaire, Data Analysis  ::   5631 engagements

ABSTRACT The purpose of this research work is to describe the practical approach to an appraisal of pay-as-you-earn system of taxation with referee to Nssuka local government area. To guide this stud...Continue reading »

AN APPRAISAL OF TAX AMNESTY IN NIGERIA (A CASE STUDY OF FEDERAL INLAND REVENUE SERVICE (FIRS), ABUJA)

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 84 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   2518 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY Tax is one of revenue instrument in a country that exists since long time ago. In the bible, there are some stories that are related with tax. ...Continue reading »

What are looking for today?

WHAT OUR CUSTOMERS ARE SAYING:
  • 1. Abubakar Sani from Nigerian Investment Promotion Commission said "I had a wonderful experience using ProjectClue, they delivered not only on time, but the content had good quality. I recommend ProjectClue for any project research work.".
    Rating: Excellent
  • 2. Ogunniran Olawale from Ekiti state university said "Projectclue is really safe and reliable Quick access to project works Nice customer service Fast delivery of request Recommend this toy fellow students ".
    Rating: Excellent
  • 3. Fahat Nasir from isa kaita college of education dutsinma said "Fish farming a solution unemployment ".
    Rating: Very Good
  • 4. Ajimbi Oluwarotimi from Theology school osun said "Good ".
    Rating: Very Good
  • 5. Clement Abdullahi Ogiji from National Open University of Nigeria said "I am a living witness and have recommended project clue to a lot of students, so far none have been disappointed, very reliable and, trustworthy and dependable".
    Rating: Excellent
  • 6. Jhuee from Sultan national high school said "Good quality. I recommend project clue for any project research work.".
    Rating: Excellent