Factors influencing Rent Tax compliance in the Accra metropolis of Ghana: The moderating role of education

Abstract

This study assessed the factors influencing rent tax compliance among property owners in the Accra Metropolis, Ghana. Specifically, the effects of economic, institutional, attitude and perception, and social factors on tax compliance behaviour of property owners were determined. The multi-stage sampling technique was used to draw a sample of 375 from a total population of 10,654 registered property owners in the Accra Metropolis. Data collected using a structured questionnaire was analysed using frequencies, percentages, means, standard deviations, and the PLS-SEM. The results revealed that economic factors, institutional factors, attitude and perception, and social factors significantly influence rent tax compliance. Furthermore, though education positively influenced tax compliance, it did not show any significant effect on the relationship between the foregoing factors and rent income tax compliance. It was, therefore, recommended that policymakers should explore alternative strategies beyond education like implementing straightforward and user-friendly tax processes to encourage compliance and also involving taxpayers in the tax policy-making process and seeking their input to contribute to a sense of ownership, making individuals more likely to adhere to their tax obligations.