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Article Title:
An Empirical Assessment of Tax Knowledge, Socio-Economic Characteristics and Their Effects on Tax Compliance Behaviour in Sunyani Municipality, Ghana
by Amankwaah Eric, Abina Solomon, Agyei Kwaku Nicholas, Henrrietta Agyeiwaa and Kofi Antwi

Abstract:
The payment of taxes is of significant concern to policymakers in developing nations. Various tax agencies in developing countries have utilised different procedures to quantify the nature of non-compliance, which depends on social and economic behaviour of citizens. This study sought to examine the effect of tax knowledge and socioeconomic characteristics of taxpayer on tax compliance behaviour in the self-assessment system in Sunyani Municipality, Ghana. A descriptive research design was adopted and semi-structured questionnaire was used to collect data. Descriptive method, T-test, ANOVA, and regression analyses were used to examine the tax knowledge and tax compliance behaviour. Three hundred and ninety-nine (399) respondents were stratified and randomly selected as sample for the study. From the study, it was revealed that that knowledge of tax significantly affect tax compliance, regardless of the fact that the level of knowledge of the tax varies essentially among respondents. It was discovered that there is a positive association between tax compliance and socioeconomic characteristics (gender, gross monthly income). Other variables like age, religion, and level of education have no correlation with tax compliance behaviour. Tax knowledge assumes an essential part in expanding tax compliance behaviour in the self-assessment system. The factors that affect tax compliance have been of immerse interest to tax authorities and policy makers in their quest to improve tax revenue in the developing countries. This paper assesses the effect of tax knowledge of individuals on tax compliance behaviour in the self-assessment system in Ghana. This paper provides valuable information to individual taxpayers with the necessary skill-sets and knowledge abilities to enable them to comply with the Ghanaian income tax requirement. Tax authorities will know the behaviour and complying features of taxpayers to help to complete the three-fold goals of the self-assessment system.

Keywords: Tax Knowledge, Tax Compliance, Tax System, Income Tax, Self-Assessment System, Socio-Economic Characteristics

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