1Amewuda Abraham | 2David Ackah (PhD)
1St. Johns Grammar School | 2Center for Excellent Training & Consultancy
Email: dashdollar2004@yahoo.com | drackah@ipmp.edu.gh
Abstract
The issue of taxation has generated a lot of controversy and several political conflicts over time. According to its importance, several economic theories have been proposed to run an effective system, identified taxation as a compulsory levy by government through its various agencies on the income, capital or consumption of its subjects, indicated that tax is a legally compulsory transfer of money from the public to the government mainly as a source of government revenue while argue that tax is a payment which cannot be avoided without attracting a punishment and in return of which no gain/quid pro-quo is promised by the government to the tax payer. A tax is an involuntary payment by a person referred to as a tax payer therefore taxes are distinguished by their compulsory nature and by lack of relationships between the amount paid and the values of the basic services received by the tax payers. Taxes are essential (World Bank, 2014). Economists have put forward many theories of tax at different times to guide the state as to how justice or equity in taxation can be achieved
Keywords: Tax Theory, Public Financial Administration, Economic management, Sustainability of SMEs, Development Economics, Challenges Facing the Growth of SMEs