Behavioral intentions and sales tax compliance among SMEs in Ghana: The moderating role of patriotism and religiosity

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The purpose of this study was to examine the influence of behavioral intentions of taxpayers on sales tax compliance and examined the moderating role of patriotism and religiosity between behavioral intentions of taxpayers and sales tax compliance among small- and medium-sized enterprises (SMEs) in Ghana, specifically Sekondi-Takoradi Metropolis. In this study, 375 questionnaires were distributed by using stratified sampling technique, which entails dividing the small and micro-sized enterprises (SMEs) into distinct strata. After which 311 useable questionnaires were deemed suitable for analysis. Partial least squares structural equation modelling (PLSSEM) was used to validate the measurement model and structural model and the predictive relevance of the study’s model. The findings showed that behavioral intentions of taxpayers, patriotism and religiosity were positively associated with the level of sales tax compliance. The findings further demonstrated the moderating negative and insignificant effect of patriotism as well as religiosity on the relationship between behavioral intentions of taxpayers with sales tax compliance. The study recommends that authorities should collaborate with community organizations, religious institutions, and local leaders to promote a culture of tax compliance. Engaging respected community figures can influence behavioral intentions positively.
A thesis submitted to the department of accounting and finance, school of business, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the award of the degree of master of science in accounting and finance.