TAX COMPLIANCE BEHAVIOURS AMONG SELF-EMPLOYED PERSONS IN THE CAPE COAST METROPOLIS

ABSTRACT This study examined the influence of non-economic factors such as socioeconomic factors and psychological components which have the tendency of influencing tax compliance. The study was based on the Fisher tax compliance model. A partial modification of the model was done by incorporating an important tax compliance determinant – “Tax Knowledge”. The effect of perceived tax fairness, tax knowledge, and tax complexity in tax compliance decisions among a sample of 350 self-employed persons in Cape Coast metropolis was explored. Descriptive correlational design was adopted in the study. The data was analysed by multiple regression, ANOVA and Chi square methods which were undertaken with SPSS software. The findings revealed that simultaneously, perceived tax fairness, tax knowledge and tax complexity influence taxpayers’ compliance decisions. While the partial test showed that both tax fairness and tax knowledge affect the tax compliance among SMEs taxpayers in Cape Coast while the tax complexity/ structure did not give any significant effect on tax compliance. The results of the study suggest that tax knowledge is a key factor which determines tax compliance levels of the self employed especially in the self assessment system. It is, therefore, recommended that tax education programmes be designed for the self employed to help improve on their tax knowledge