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Taxes are major sources of government revenue required to finance state machinery. However, the Ghanaian economy, recognised as an emerging market, is predominantly characterised by the informal sector and largely dominated by small and medium scale enterprises (SMEs), is not properly regulated resulting in poor and delayed tax compliance culture. This phenomenon adversely affects the needed revenue for developmental projects. Consequently, a need arose to educate taxpayers about their civic obligations of paying taxes. This paper, thus, aimed at testing the effect of tax education on tax compliance among SMEs within the Techiman Municipality of Ghana. This paper used an online survey to collect valid responses from 297 respondents using purposive and simple random sampling techniques. Partial Least Square – Structural Equation Model (PLS-SEM) approach was adopted in assessing the measurement and structural models. This study reports that electronic media taxpayer education positively (? = 0.523, t-value = 4.466, P-value = 0.000) affects tax compliance; print media taxpayer education significantly (? = 0.230, t-value = 2.232, P-value = 0.026) influence tax compliance; and stakeholder sensitisation programmes significantly (? = 0.236, t-value = 1.991, P-value = 0.047) impact on tax compliance. The researchers thus recommend that tax authorities within the Techiman Municipality should intensify taxpayer education amongst SMEs as they tend improving tax compliance to shore up government revenue. This study will provide government feedback concerning policies that should be carried out and the requisite education or training that needs to be embarked on to enhance voluntary tax compliance among SMEs in Ghana.
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In-Text Citation: (Amaning et al., 2021)
To Cite this Article: Amaning, N., Anim, R. O., Kyere, A., Kwakye, G., & Abina, S. (2021). Tax Compliance among Ghanaian SMEs: How impactful is Taxpayer Education? International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(1), 40-58.
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