Abstract
This study examined the factors that influence the number of tax stump purchased in Twifo-AttiMorkwa sub-tax district in Ghana. Data were collected from taxpayers in the study area who qualify for tax stamps using the interview schedule. In total, 305 taxpayers were interviewed. The study employed negative binomial regression model to examine the factors that influence the quantity of tax stamp purchased. It was found that the taxpayer’s level of education, the perceived importance he/she attaches to tax payment, guilt feelings and other tax administration factors, including the application of sanctions, the rate of tax audit and distance to tax office were key predictors of tax stamp purchases. This study, therefore, recommends that tax auditors should go round at least at the beginning of every quarter to inspect the number of tax stamps that taxpayers have bought. The study also recommends that Ghana Revenue Authority should apply sanctions promptly when taxpayers default payment.
Highlights
Taxes play a major role in the development of a country
Based on the findings of the study, it can be concluded that the expected log count of the number of tax stamp purchased per year in the study area are explained by the level of education, perception about the importance of tax payment, application of sanctions, guilt feelings, tax audit and distance to tax office
Among these determinants, the application of sanctions, income of the taxpayer, educational attainment, and perception about the importance of tax payment had greater effects on the expected log count of the number of tax stamp purchased per year
Summary
Taxes play a major role in the development of a country. They are a major source of government revenue in developing countries, including Ghana. A critical observation of this study revealed that the author failed to analyse the extent to which each factor influenced the number of tax stamp purchased by tax payers. It is this gap that has created the platform for this current study The authors in this current study observed that the analytical tool (binary log it) used by Amponsah [4] failed to help him analyse the extent to which each factor influenced the number of tax stamp purchased by taxpayers. In their opinion, the generalised model for estimating a count variable (in this case tax stamp purchases) is the Poisson regression. H1: Distance between taxpayer‘s place of business and tax office has effect on the number of tax stamp purchased
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