Corruption Perception and Tax Compliance Behavioural Dynamics: Micro-Level Analyses in Ghana
Corruption Perception and Tax Compliance Behavioural Dynamics: Micro-Level Analyses in Ghana
The study examined the nexus between corruption perception and tax compliance. The study was conceived on the premise that Ghana continues to face tax revenue bottlenecks arising from low tax compliance. A multi-stage sampling technique with proportionate allocation was employed to select a sample size of 887. Out of the 887 questionnaires administered, 755 were received and coded. The data were analysed with partial least square-based structural equation modelling (PLS-SEM). It was found that political and administrative corruption both have a significant negative coefficient on the level of voluntary tax compliance. It is further revealed that both political and administrative corruption have a significant positive effect on enforced tax compliance. The study concluded that corruption inhibits voluntary tax compliance but could still augment enforced tax compliance through coercion and threat of sanctions. Findings from the study imply that segregating tax compliance into its different dimensions and modelling them separately would not only contribute to sound policy formulation but also extend the theoretical implication of the social exchange theory.
CITATION: Seidu, Baba Adibura. Corruption Perception and Tax Compliance Behavioural Dynamics: Micro-Level Analyses in Ghana . London : Adonis & Abbey Publishers , 2024. African Journal of Business and Economic Research, Vol. 19, No.3, 2024, pp. 33–55 - Available at: https://library.au.int/frcorruption-perception-and-tax-compliance-behavioural-dynamics-micro-level-analyses-ghana