TO ASSESS THE FACTORS THAT INFLUENCES SMES IN TAX COMPLIANCE

Abstract

Some of our large companies today grew up from small and medium enterprises suggesting that the future large corporations are the SMEs of today that must be nurtured to ensure their growth. Thus, SMEs are generally perceived to be the nursing for indigenous entrepreneurship which will result into growth of small investments, which would otherwise not have taken place .Therefore, developing economies such as Zambia needs to further the development of its private sector by creating an enabling environment favorable to the growth of small and medium (SMEs), scale industries thereby strengthening the factors that lead to business success, and addressing the problems threatening the existence and advancement of small and medium enterprises, so that they can adequately play the role expected of them in economic transformation. It is a well known fact that the revenue generated from the taxation of individuals and businesses is an important source of income for government. In an economy such as ours, that is struggling to remain afloat, it is even more important.