Empirical evidence on SMEs’ tax management

Abstract

The aim of this study is to analyse the approaches that Moroccan SMEs adopt with respect to taxation using survey data. After the major approaches were identified from the tax management literature and were extracted by applying the principal component analysis to the survey data, we conducted a confirmatory factor analysis to determine the tax management approach of Moroccan SMEs. Our study suggests that Moroccan SMEs adopt a proactive approach to taxation and consider it as a decisional component of their overall strategy.

Keywords:

• tax management
• SMEs
• strategy
• Morocco
• decision making

JEL Classification:

• M41
• M21

Notes

¹ The recommended threshold values are: (i) GFI >0.90, (ii) CFI >0.90 and (iii) RMSEA <0.l0 (Roussel et al., 2002).