Bennett, Piyaseeli (1981) Effects of taxation on business in less developed countries with special reference to Sri Lanka. PhD thesis, University of Warwick.

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Abstract

Taxation today
plays a major role
in
economic activity, as
the
prime
source of revenue and as a
tool
of economic management for
government and
as a major recurrent outgoing for business firms
and
households.
Theoretical
analysis of
the impact
of new taxes or changes
in taxation
is
usually conducted with reference to investors
and
business firms
exercising
'rational'
profit
(or
present value) maximising
behaviour
under conditions
where all other relevant
factors
remain unchanged.
Empirical
evidence on
business
response
to taxation is however inconclusive in the case of
developed
economies and sparse
in
relation to LDCs.
This thesis
examines
the impact
of
taxation
on
business in LDCs
at
the
level
of
the individual business firm,
using
the survey technique supported
by
content analysis and ratio analysis of published material.
The
study
is
carried out with particular reference
to Sri Lanka,
a
typical LDC, but the
findings
are also supported
by
analysis of
business
opinion
in two
other
developing
countries.
A
separate examination
is
undertaken of
the
perceptions
of and responses
to taxation
of
MNC business
operating
in LDCs.
The
research results
lead to three
main conclusions.
Firstly, the
perceptions of
business
relating to taxation are seen to be
non-uniform
and
for the most part are related to organisational characteristics of the
business
entities.
Secondly, business
response
to taxation does
not always correspond with
rational profit maximising
behaviour
on the
part of
business
managers.
Liquidity
objectives appear to be
at
least
as
important.
Finally,
perhaps
the
main conclusion
drawn from the
research
findings
is that the impact
of
taxation
on
business decisions is
small and
that
taxation is
not
by
any means a major constraint on
business development;
the main reason
being the presence of other more restrictive environmental
influences.

Item Type:	Thesis or Dissertation (PhD)
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HF Commerce H Social Sciences > HG Finance
Library of Congress Subject Headings (LCSH):	Taxation -- Sri Lanka, Taxation -- Developing countries, Business enterprises -- Developing countries -- Finance, Economic development -- Sri Lanka, Surveys
Official Date:	October 1981
Dates:	Date Event October 1981 Submitted
Institution:	University of Warwick
Theses Department:	Warwick Business School
Thesis Type:	PhD
Publication Status:	Unpublished
Supervisor(s)/Advisor:	Fawthrop, Roger A.
Sponsors:	Fawthrop, Roger A.
Extent:	x, 448 leaves
Language:	eng

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