TITLE:
Determinants of Tax Evasion: Empirical Evidence from Ghana
AUTHORS:
Bismark Ameyaw, Dominic Dzaka
KEYWORDS:
Factor Analysis, Tax Evasion, Tax Compliance, Ghana
JOURNAL NAME:
Modern Economy,
Vol.7 No.14,
December
14,
2016
ABSTRACT: For decades, researchers of tax systems and taxation
as a whole are in a dilemma on the factors affecting taxpayers’ noncompliant
behaviors. Numerous experimental and survey results concluded by tax
researchers have identified characteristics of noncompliant taxpayers because
tax revenues are seen as a major source of income in funding government
expenditures. Globalization has called for a huge demand for numerous public
services thereby forcing governments into increasing tax revenues to finance
these projects. The demand of public service by government and taxpayers shifts
the burden of taxes to taxpayers. The gap between tax revenues and tax
expenditures are swelling thereby ensuring unbalanced government budgets due to
taxpayers’ noncompliance. Understanding the causes of tax evasion calls for
research into taxpayers’ reasons for evading taxes. The main aim of the study
is investigating factors that have a detrimental effect on tax evasion in
Ghana. In coming out with such factors, this research employed multiple
regression techniques and factor analysis. The empirical results obtained from
the analysis revealed that taxation and fiscal factors, demographic factors,
administrative factors and economics factors are the main factors that have a
significant effect on the evasion of taxes.