Tax Compliance of Small and Medium Enterprises in Bolgatanga Metropolis

Abstract

Tax noncompliance in Ghana has remained a major issue as a result of people's deliberate choice not to register and pay theocratisations. Few research studies have shown conflicting results about the drivers of tax compliance campaigns, and they have been unable to build a systematic framework that promotes individuals to comply with their responsibilities. The lack of clarity on what causes people to comply with tax limits facilitates a good understanding of the tax policy development. Due to this, the research analysed the Bolgatanga Metropolitan Assembly and how the factors influence the tax compliance behaviour of small and medium-sized business owners (SMEs). To accomplish the goals of the research, a sample of 362 from a population of 6044 was analysed using multiple regression. Using a multivariate regression model to evaluate the goals, I discovered that institutional variables had a positive and substantial effect on the degree of tax compliance among SME owners. Additionally, societal issues such as ethics had a favourable and substantial effect on tax compliance. Individual considerations also have a favourable and substantial effect on tax compliance. The research suggested that tax authorities should simplify the onerous procedures that people must through while filing their taxes. In addition, the government should not emphasize the characteristics of respondents while developing tax policy. Individual characteristics, such as age, degree of education, and field of endeavour, do not influence the tax compliance of the self-employed since they have no significant impact on tax compliance.