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An Investigation into Tax Evasion in Ghana

Author

Listed:
  • Robertson Amoah
  • Samuel Yeboah Asuamah
  • Newman Amaning

Abstract

The paper determines the strength of various arguments put out to justify tax evasion in an open but small economy such as Ghana. The study is based on descriptive quantitative cross-sectional survey of HND one marketing students of Sunyani Polytechnic who are the targets for the study. The sample was selected using non probability convenience sampling method. Questionnaires were prepared using the Likert scale covering 17 arguments and were distributed to the students during lecture periods. The results from the data analysed was presented in tables. The results indicate that if the tax system is unfair, large portion of the money collected is wasted, and the money collected gets into the pockets of corrupt politicians, then evasion may be justified. There was demographic (gender, age, religion, employment) differences in some of the arguments for tax evasion. Future research should examine why there are differences in opinions using structural models in causal studies.

Suggested Citation

  • Robertson Amoah & Samuel Yeboah Asuamah & Newman Amaning, 2014. "An Investigation into Tax Evasion in Ghana," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 2(3), pages 115-122.
    • Handle: RePEc:rss:jnljef:v2i3p2
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    References listed on IDEAS

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    1. Robert W. McGee, & Arsen M. Djatej, & Robert H. S. Sarikas,, 2012. "The Ethics Of Tax Evasion: A Survey Of Hispanic Opinion," Accounting & Taxation, The Institute for Business and Finance Research, vol. 4(1), pages 53-74.
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    3. Alm, James & McClelland, Gary H. & Schulze, William D., 1992. "Why do people pay taxes?," Journal of Public Economics, Elsevier, vol. 48(1), pages 21-38, June.
    4. Benno Torgler, 2007. "Tax Compliance and Tax Morale," Books, Edward Elgar Publishing, number 4096.
    5. Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
    6. Benno Torgler & Markus Schaffner & Alison Macintyre, 2007. "Tax Compliance, Tax Morale and Governance Quality," CREMA Working Paper Series 2007-17, Center for Research in Economics, Management and the Arts (CREMA).
    7. Robert W McGee, 2006. "The Ethics Of Tax Evasion: A Survey Of Romanian Business Students And Faculty," The IUP Journal of Public Finance, IUP Publications, vol. 0(2), pages 38-68, May.
    8. Benno Torgler & Markus Schaffner & Alison Macintyre, 2007. "Tax Compliance, Tax Morale and Governance Quality," CREMA Working Paper Series 2007-17, Center for Research in Economics, Management and the Arts (CREMA).
    9. Robert W McGee, 2007. "Ethics and Tax Evasion in Asia," The IUP Journal of Public Finance, IUP Publications, vol. 0(2), pages 21-33, May.
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