Effects of religiosity on tax compliance among small and micro-businesses in makola shopping mall, accra

No Thumbnail Available
Journal Title
Journal ISSN
Volume Title
The aim of this study is to examine the level and effect of religiosity on tax compliance among small and micro-business owners in the Makola Shopping Mall, Accra, Ghana. The cross-sectional approach was adopted in the study. Data were administered and obtained from 106 small and micro-business owners using questionnaires and analyzed using descriptive statistics and multiple regression analysis. Generally, the research showed that religiosity has a positive and significant effect on tax compliance. The key findings were that majority of the respondents are religious; actively committed and affiliated to their religion. The study’s finding also showed that the more respondents were religiously committed and affiliated, the more they were likely to be tax compliant. Additionally, the results showed that individuals with high level of religious commitment are more tax compliant than those with low level of religious commitment. Given the positive relationship between religiosity and tax compliance, it is recommended that the Domestic Tax Revenue Division of the Ghana Revenue Authority should encourage religious institutions to continue to highlight their importance of tax compliance from the religious perspective. The policies and actions of the tax authorities should build continuous interest in tax compliance culture. The Ghana Revenue Authority should also put in place simple and conducive systems which will increase tax compliance amongst business owners.
A dissertation submitted to the department of accounting and finance, kwame nkrumah university of science and technology, kumasi in partial fulfilment of the requirements for the award of master of science degree in accounting and finance