The Impact of Informal Tax Education on Reporting Compliance: Mediation Role of General Tax Knowledge Within the Informal Sector of Ghana

Abstract

One of the vital sectors within the economy of Ghana is the informal sector. The sector contributes significantly to the economy but remains largely untaxed, partly due to limited awareness of tax obligations and tax responsibilities. Although, some research work has been conducted in Ghana in relation to broader concept of tax education, tax compliance and tax knowledge within the informal sector, however, empirical investigation into the linkage between general tax knowledge, informal tax education and reporting compliance is rare. In view of this, the purpose of the study is to examine the mediating role of general tax knowledge on the impact of informal tax education on reporting compliance.