AN EXPLORATORY STUDY ON THE CHALLENGES OF VAT FLAT RATE SCHEME

Abstract

This project work which seeks to find challenges of the tax administration in the Kumasi was used as a case study. The main purpose of the study was to find out the benefits of tax payers, problems of tax administration in Kumasi. The researcher used questionnaire and interviews to gather data for the study. The findings were that tax administrators lack adequate logistics in their supervisory and monitoring roles. A number of findings were made. Some are; the VAT staff having or no knowledge in accounting and taxation, no motivation and training of staff, tax payers unable to keep proper records, educational level of majority of tax payers being very low. The research work was constrained with the following limitations; limited time of respondents due to the demanding nature of their work. They couldn’t give out detailed information, unwillingness of the Local VAT Service officers to give out certain information which they deemed to be confidential; the semi- structured form of interview technique we used limited our ability to access all the important information that we needed from the officers of the VAT Service. It is recommended among others that the challenges revealed are real and that if the recommendations made are adhered to, the challenges of tax administration will be minimized.