Corruption perception, media reportage of corruption, religiosity and tax compliance in Ghana

Abstract

The study investigated corruption perception, media reportage of corruption, religiosity and tax compliance in Ghana. The study was conceived on the premise that Ghana continues to face tax revenue bottlenecks arising from low tax compliance. This poor tax revenue has continued to negatively affect government budgets, programs and projects and contributed to the growing public debt. Quantitative analytical techniques and survey design were followed in this study. The research philosophy for this study was positivism. Primary data were collected and used for the study. 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). The investigation established that corruption inhibits voluntary tax compliance but could still augment enforced tax compliance through coercion and threat of sanctions. The study demonstrated that media framing could shape tax compliance behaviour amid corruption perception. It was also established that highly religious tax payers honour their tax obligation voluntarily amidst corruption perception. It is recommended that both tax administrators (Ghana Revenue Authority) and the political class should develop and effectively implement an anti-corruption framework including „name and shame‟, and „transparency in the asset declaration‟ through media coverage. Government should partner with both the media and religious bodies to develop positive tax compliance culture.