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

Authors

  • Daniel Susuawu Finance Directorate, University of Health and Allied Sciences, Ho (UHAS), Ghana, West-Africa
  • Kenneth Ofori-Boateng Ghana Institute of Management and Public Administration (GIMPA)
  • John Kwaku Amoh Faculty of Accountıng and Fınance, Department of Accountıng, 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 those theories 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.

Keywords: Tax, Service, Quality, Compliance, Ghana, Economic Growth, SMEs

JEL Classifications: H2, Q2, Q3

DOI: https://doi.org/10.32479/ijefi.10554

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Author Biographies

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

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

Kenneth Ofori-Boateng, Ghana Institute of Management and Public Administration (GIMPA)

Ghana Institute of Management and Public Administration, Accra, GhanaDepartment of Accounting and Finance, GIMPA Business School, P.O. Box AH 50, Achimota, Accra, Ghana,

John Kwaku Amoh, Faculty of Accountıng and Fınance, Department of Accountıng, University of Professional Studies, Accra, Ghana, West Africa.

John Kwaku Amoh is a Senior Lecturer in Accounting and a Course Lead (Taxation and Computerised Accounting Information Systems) of the Department of Accounting, Faculty of Accounting and Finance of the University of Professional Studies, Accra. He is currently a representative of Department of Accounting on the Accounting and Finance Faculty Board. His teaching and research interests are focused in the areas of Taxation and Public Policy and Computerised Accounting Information Systems. John holds Master of Philosophy (MPhil) in Accounting and Bachelor of Science Administration (Accounting Option) from University of Ghana Business School in 2008 and 1999 respectively. He is currently pursuing Doctor of Philosophy (PhD) programme with Ghana Institute of Management and Public Administration (GIMPA), Ghana, a programme he has been pursuing since August 2015. He is a Chartered Accountant and was admitted into membership in 2008. Before migrating into academia, John gathered over ten years of Senior Level Managerial working experience providing complete financial management of all accounting and finance activities in a fast-paced world-class multinational company. He was appointed as a Lecturer in Accounting at University of Professional Studies Accra in January 2011. John is a learner-centred lecturer who seeks to impart knowledge, inspire and support his students toward the realisation of their respective goals. He is a calm and a highly motivated person.

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Published

2020-11-04

How to Cite

Susuawu, D., Ofori-Boateng, K., & Amoh, J. K. (2020). Does Service Quality Influence Tax Compliance Behaviour of SMEs? A New Perspective from Ghana. International Journal of Economics and Financial Issues, 10(6), 50–56. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/10554

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