Incidence of Expenses of Compliance with the fiscal vector in the profits of the Legal SMEs of the Piñas Canton, Ecuador

Abstract

The compliance expenses of the tax vector are those costs and time that a taxpayer assumes to comply with tax obligations, the standard of the Ecuadorian tax system has implemented strategies that encourage voluntary compliance, as well as the simplification of processes to reduce them, however, there is still a high cost, which essentially affects SMEs. The present investigation answers the question: How do the expenses of compliance with the fiscal vector affect the profits of the legal SMEs of the Piñas canton, period 2021? Whose objective was to determine the incidence of the expenses of compliance with the fiscal vector in the profits of the legal SMEs of the Piñas canton, period 2021. The Hypothetical-Deductive method was used, of a descriptive type and from a quantitative - qualitative approach. It considered a population of 169 Legal SMEs from the Piñas canton, and the questionnaire was applied to a sample of 67 businesses. The results detail that the sum of the internal and external cost affects the utility, where the highest is the internal cost. It is concluded that the expenses of the fiscal vector are high and the use of external accountants is very common in Legal SMEs.