Predictors of tax compliance intentions among self-employed individuals: the role of trust, perceived tax complexity and antecedent-based intervention strategies

ABSTRACT

This study examines the tax compliance intentions of self-employed individuals in the informal sector and evaluates the effect of antecedent-based intervention strategies, trust and perceived tax complexity on tax compliance intention. Using the extended version of the Theory of Planned Behaviour as the theoretical base, the study additionally investigates whether attitude, subjective norms, perceived behavioural control and moral obligation may be good predictors of tax compliance intention. Data were gathered from 725 self-employed individuals in Ghana using a structured questionnaire, and analysed using the structural equation modelling technique. We find from our empirical analysis that although our respondents exhibit greater intention to comply with tax payment duties, most respondents consider non-compliance to be justifiable if the tax rates are too burdensome. Our results further suggest that trust in the tax system, perceived tax complexity, antecedent-based intervention strategies, attitude, subjective norms, and moral obligation are relevant predictors of tax compliance intention.

KEYWORDS:

• Tax compliance
• trust
• tax complexity
• theory of planned behaviour
• informal sector
• antecedent-based intervention strategy‌

Disclosure statement

No potential conflict of interest was reported by the author(s).