Determinants of Tax Compliance in Ghana:

The Case of Small and Medium Tax Payers in Greater Accra Region

  • Ebenezer Teye Okpeyo University of Ghana Business School
  • Alhassan Musah Dominion University College
  • Erasmus Dodzi Gakpetor Dominion University College
Keywords: tax compliance, small tax payers, medium tax payers, ghana revenue authority

Abstract

The study examined the factors that influence tax compliance by small and medium tax payers, the difference in the level of compliance between small and medium tax payers and strategies to improve tax compliance in Ghana. The study through stratified sampling technique sampled 100 small and medium tax payers in Accra and other GRA officials for the study. Data was analyzed qualitatively and quantitatively. The results of the study showed that compliance cost, tax rates, tax audits and morals of taxpayers significantly influenced tax compliance. The GRA also indicated that unions and associations of businesses could help increase voluntary tax compliance of small and medium tax payers in Ghana. The study findings provide evidence that there is a significance difference in the tax compliance level between small and medium scale enterprises. The difference can be largely attributed to the inability of small enterprises to file their tax returns on due dates and also to keep proper books of records of their business transactions. The study recommends organizing workshops for businesses to train them on the need to pay their taxes and keep proper records of their transactions, increasing the rate of audits of businesses, imposing fines and penalties for defaulting businesses.

Author Biographies

Ebenezer Teye Okpeyo, University of Ghana Business School

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Alhassan Musah, Dominion University College

School of Business

Erasmus Dodzi Gakpetor, Dominion University College

School of Business

Published
2019-03-30
How to Cite
Okpeyo, E., Musah, A., & Gakpetor, E. (2019). Determinants of Tax Compliance in Ghana:. Journal of Applied Accounting and Taxation, 4(1), 1-14. https://doi.org/10.30871/jaat.v4i1.935