The Effect of Taxation on the Financial Performance of Hass Petroleum, Juba, South Sudan

Abstract

The Study Sought To Analyze The Effect Of Taxation Processes On The Financial Performance Of Hass Petroleum, Juba South Sudan. Specifically, The Study Focused On To Assess The Effect Of Tax Assessment On The Financial Performance Of Hass Petroleum, Juba, South Sudan, To Assess The Effect Of Tax Sensitization On The Financial Performance Of Hass Petroleum, Juba, South Sudan And To Assess The Effect Of Tax Collection On The Financial Performance Of Hass Petroleum, Juba, South Sudan. The Study Adopted A Correlational Research Design To Establish The Relationship Between Taxation Processes And Financial Performance Of Hass Petroleum, Juba, South Sudan. Samples Of 49 Respondents Were Contacted And All Of Them Filled The Questionnaires. The Study Employed Self-Administered Questionnaires To Collect Data From The Employees Of Hass Petroleum, Juba South Sudan. Data Was Coded And Analyzed Using The Statistical Package For Social Science (Spss). As Regards The Effect Of Tax Assessment On The Financial Performance Data Analysis Table Revealed That There Is A High Positive Relationship Between Tax Assessment And Financial Performance Of Hass Petroleum Juba, South Sudan At(R=.585, Sig Value=.000< P-Value.05).The Other Remaining .415 May Be Attributed To Other Factors Such As Taxpayer Identification And Registration. It Was Also Apparent That Hass Petroleum Conducts Self-Assessment Of Tax Before The Authority’s Assessment. As Regards The Effect Of Tax Sensitization On The Financial Performance Data Analysis Table Revealed That There Is High Positive Relationship Between Tax Sensitization And Financial Performance Of Hass Petroleum Juba, South Sudan At(R=.731, Sig Value=.000< P-Value.05). The Other Remaining .269 May Be Attributed To Other Factors Such As Taxpayers’ Educational Background, Number Of Tax Education Seminars Attended. It Was Observed That Large Proportion Of Business Community Is Ignorant About Taxes They Pay. As Regards The Effect Of Tax Collection On The Financial Performance Data Analysis Table Revealed That There Is High Positive Relationship Between Tax Collection And Financial Performance Of Hass Petroleum Juba, South Sudan At(R=.783, Sig Value=.000< P-Value.05). The Other Remaining .217 May Be Attributed To Other Factors Such As Fairness And Justice And Convenience Of Payment. The Study Recommended That Improvements Should Be Made In The Assessment Of Tax Payers. Transparency, Fairness And Well Stipulated Guidelines Should Be Followed By Staff. Sensitization Of Taxpayers Regarding The Importance Of Paying Taxes And Their Obligations Should Be Given More Emphasis Than It Is At The Present. Quality And Timely Information Should Be Availed To Tax Payers And Also Encourage Feedback From The Tax Payers. The Revenue Authority Should Adopt A More Pro-Active Approach Rather Than Reactive Approach In Trying To Collect Taxes. Regular Training Programmes Should Be Instituted To Equip The Staff With Necessary Skills Especially With Regard To Interpretation Of The Tax Laws.