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Does Service Quality Influence Tax Compliance Behaviour of SMEs? A New Perspective from Ghana

Author

Listed:
  • Daniel Susuawu

    (Finance Directorate, University of Health and Allied Sciences, Ho (UHAS), Ghana, West-Africa,)

  • Kenneth Ofori-Boateng

    (Department of Accounting and Finance, Ghana Institute of Management and Public Administration (GIMPA), Greenhill, Accra, Ghana, West Africa,)

  • John Kwaku Amoh

    (Department of Accounting, Faculty of Accounting and Finance, University of Professional Studies, Accra, Ghana, West-Africa.)

Abstract

While many factors influence tax compliance behaviour, this study aims to examine the effect of the quality of tax services on the compliance behaviour of small and medium-sized enterprises. The study used the survey to test five hypotheses with the aid of frequency tables, regression and correlation analyses. The study found statistically significant positive effects of reliability, responsiveness, assurance, and empathy on the tax compliance behaviour of SMEs. Secondly, there are varying positive correlations amongst key tax service quality measures. The research has several implications for taxing authorities and policy makers due to its effect on tax revenue generation for economic growth and development. The novelty of this paper lies in its premier attempt to enrich the literature on the tax service quality- tax compliance behaviour nexus with the adoption of Parasuraman et al. (1988) s service quality indicators. In employing these tax service quality indicators, a better understanding is gained into tax non-compliance behaviour, which emanates from poor service quality. The findings provide some insights to taxing authorities and policy makers in drafting policies to enhance tax compliance by improving, digitising and modernising tax administration for maximum revenue mobilisation to drive economic growth.

Suggested Citation

  • Daniel Susuawu & Kenneth Ofori-Boateng & John Kwaku Amoh, 2020. "Does Service Quality Influence Tax Compliance Behaviour of SMEs? A New Perspective from Ghana," International Journal of Economics and Financial Issues, Econjournals, vol. 10(6), pages 50-56.
    • Handle: RePEc:eco:journ1:2020-06-8
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    References listed on IDEAS

    as
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    3. Torgler, Benno & Schneider, Friedrich, 2009. "The impact of tax morale and institutional quality on the shadow economy," Journal of Economic Psychology, Elsevier, vol. 30(2), pages 228-245, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Tax; Service; Quality; Compliance; Ghana; Economic Growth; SMEs;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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