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Causes and Effects of Failure to File Annual Returns in Developing Countries Based on the Theory of Planned Behavior and Economic Deterrence Theory

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DOI: 10.4236/ojbm.2019.74108    100 Downloads   259 Views
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ABSTRACT

Companies are required by the Companies Act No. 10 of 2018 to file annual returns with the Registrar of companies within ninety (90) days following the year end. However, most companies do not comply with this requirement. Therefore, this study is aimed at determining the causes and effects of failure by companies limited by guarantee to file annual returns with Patents and Companies Registration Agency (PACRA). The research study used a case study in a descriptive form to get in-depth and detailed information on the causes and effects of failure to file annual returns with PACRA by companies limited by Guarantee. The study had a total sample size of 151 respondents with 121 from companies limited by guarantee selected within Lusaka district and 30 PACRA employees from the head office in Lusaka. The study was both qualitative and quantitative using primary and secondary data. The primary data were collected using structured questionnaires using a simple random sampling technique. The analysis was done both qualitatively and quantitatively using the statistical package SPSS. The study findings revealed that, failure to file annual returns by companies limited by guarantee was caused by a number of reasons such as: weak or non-existent penalties, complicated filing process, lack of understanding of the companies’ post incorporation obligations and limited sensitization on the filing requirements for companies. Based on these results, the study made the following recommendations: PACRA should streamline the filing of annual return process to make it easier for the clients to file. Additionally, the penalties for non-compliance should be more punitive in order to deter any form of non-compliance. There is also a need for PACRA to restructure their sensitization programs to ensure that all their target groups are covered.

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Seta, K. and Phiri, J. (2019) Causes and Effects of Failure to File Annual Returns in Developing Countries Based on the Theory of Planned Behavior and Economic Deterrence Theory. Open Journal of Business and Management, 7, 1564-1576. doi: 10.4236/ojbm.2019.74108.

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