An Analysis of Determinants of tax compliance by Small and Medium Enterprise in Harare

ABSTRACT

This research carried out an analysis of the determinants of tax compliance by Small and Medium Enterprises (SMEs) in the Magaba area, Harare. The main objectives of the study were to assess the level of tax compliance among SMEs in Harare and establi sh SMEs tax

determinants that aff ect their level of compliance . The study used both qualitative and

quantitative information. Primary data was collected through the use of questionnaires which

were given to SMEs in the Magaba area, Harare to fill and throu gh face to face interview with 4

owner SMEs who were randomly selected. The results indicated that the level of c ompliance

among SMEs was very lo w. The study then concluded that most SMEs were not voluntarily

willing to pay tax The study recommended that t he tax authorities should make an effort to

educate the SMEs about issues concerning tax. However the researcher also recommended that

stiffer penalties should be given to those who evade paying tax. The area that is recommended

for further study is the determination of how tax calculations should be simplified and redrafted to suit the ordinary laymen.