https://ir.unisa.ac.za/handle/10500/14481 2026-05-14T04:08:50Z https://ir.unisa.ac.za/handle/10500/32173 An evaluation of tax compliance among small businesses Ndlovu, Mphagahlele; Schutte, Daniel Purpose: The purpose of this study was to evaluate the tax compliance behaviour of small business owners in order to propose strategies to improve tax compliance for this sector. Motivation: Despite efforts introduced by revenue authorities to improve tax compliance, research demonstrates that small businesses still contribute a fair share to the state revenue gap. Therefore, understanding the tax compliance behaviour of small business owners is an important step towards improving compliance in this sector. Design/Methodology/Approach: The study employed semi-structured interviews to investigate the day-to-day, authentic tax compliance lived experiences of small business owners and tax practitioners in Gauteng, South Africa. Main findings: Three important strategies emerged out of the interpretation of the findings. First, the government must make it easy for small businesses to comply. Second, the deterrence measures ought to be administered in a personalised and systematic manner. Thirdly, the government has a duty to make tax compliance appealing and socially acceptable to the majority of the small business owner community. Practical implications/Managerial impact: The implementation of the three strategies may help improve the day-to-day experiences of small business owners regarding tax compliance, resulting in more voluntary compliance. Novelty/Contribution: The results of this study add to the body of knowledge in the area of small business taxation and illuminate opportunities for future research and debate on this topic. 2026-01-02T00:00:00Z https://ir.unisa.ac.za/handle/10500/32172 The influence of penalties on the tax compliance behaviour of small business owners Ndlovu, Mphagahlele; Schutte, Daniel Purpose: The purpose of this study was to investigate the influence of penalties on the tax compliance behaviour of small business owners. Research design: This study employed a qualitative research approach. An interpretive phenomenological research approach underpinned the study design. The study utilised semi-structured interviews to explore the lived experiences of small business owners in Gauteng, which is the business hub of South Africa. Findings: The findings indicate that to an extent, penalties do encourage small business owners to pay taxes on time. However, the charging of substantial penalties has the potential to discourage small business owners from registering at all for taxes. Furthermore, non-compliance is often a result of cash flow challenges, in which case the penalties become an unavoidable cost of doing business. A lack of skills and basic tax knowledge lead to unintentional noncompliance; therefore, the penalties must be accompanied by training, awareness and education. Originality/Value: There are conflicting results on the influence of penalties on tax compliance behaviour in the literature. This study contributes to the body of knowledge by adding a South African small business perspective. Furthermore, the qualitative approach applied in this study adds to the body of knowledge and provides original contextual descriptions of the lived experiences regarding the influence of penalties on the tax compliance phenomenon. 2022-01-01T00:00:00Z https://ir.unisa.ac.za/handle/10500/32171 Obstacles encountered by tax practitioners Ndlovu, Mphagahlele; Schutte, Daniel Orientation: Tax practitioners (such as accountants and bookkeepers) are important enablers of tax compliance. Taxpayers, particularly small businesses, look to tax practitioners for expert advice because of increasingly complex tax legislation. Research purpose: There is a dearth of studies specifically highlighting the challenges faced by tax practitioners, with most studies focusing on the problems faced by taxpayers or tax administrators instead. The purpose of this article is to understand the obstacles encountered by tax practitioners with their small business clients towards improving compliance and revenue collection. Motivation for the study: Small businesses constitute a sizeable portion of tax practitioners’ clients in South Africa. However, not much is written about the obstacles tax practitioners encounter in their journey of assisting small businesses with tax compliance. Research approach/design and method: The study employed a qualitative research approach through the utilisation of semi-structured interviews. Main findings: Tax practitioners are often not able to charge market-related rates from their small business clients. Small businesses struggle to maintain the data required to file tax returns. Furthermore, tax practitioners experience pressure from dealing with historical tax matters. Lastly, tax practitioners are sometimes faced with resistance from their small business clients wherein they cooperate with tax practitioners albeit begrudgingly. Practical/managerial implications: Through awareness, policymakers and small business owners can help lessen these obstacles. Contribution: This article adds to the body of knowledge, obstacles encountered by tax practitioners in their journey of assisting small businesses with tax compliance. 2024-01-08T00:00:00Z https://ir.unisa.ac.za/handle/10500/32170 Understanding the challenges encountered by small business owners regarding value-added tax compliance Ndlovu, Mphagahlele; Schutte, Daniel Background: South African tax practitioners fulfil a worthwhile advisory role and have unique insights into and emotional responses to the challenges faced by small business owners (SBOs) regarding value-added tax (VAT). Aim: The study aims to understand the insights of tax practitioners around the challenges encountered by SBOs regarding VAT compliance. Setting: A combination of face-to-face and online interviews took place with tax practitioners who service SBOs situated in the Gauteng province of South Africa. Method: The study employed a qualitative research methodology and an interpretivism paradigm. Twenty-two semi-structured interviews were conducted with tax practitioners to gather their insights regarding challenges encountered by SBOs regarding VAT compliance. Results: Tax practitioners generally argue that SBOs struggle with compliance challenges. There is a lack of understanding regarding the basic principles of the concept of agency for VAT purposes. Operational needs often impel the SBOs to utilise the VAT monies for ongoing business concerns. Accounting for VAT on an invoice basis is difficult for SBOs. Also, at the compulsory VAT registration threshold of R1 million, the SBOs are not ready to handle the VAT compliance burden yet. Lastly, there are negative attitudes towards VAT powered by the view that VAT encompasses constant outflows of cash. Conclusion: Tax practitioners have important, yet complicated, interlocutor roles in ensuring VAT compliance. There needs to be a collaborative effort from all relevant role players to improve the day-to-day lived experiences regarding VAT compliance of SBOs. Contribution: The study’s philosophy adds differentiated dimensions around the key challenges facing SBOs regarding VAT compliance with a view towards alleviating these obstacles. 2024-08-06T00:00:00Z