Dissertation/Thesis Abstract

Towards a Theory of Taxation for Informal Sector Business Owners in Ghana
by Asamoah, Samuel Rockson, Ph.D., Northcentral University, 2018, 187; 13419196
Abstract (Summary)

The overriding presence of informal sector businesses has exacerbated the problem of tax revenue generation in the economies of most developing countries. Business owners in the informal sector have negative opinions and attitudes against taxation and they are unwilling to pay taxes. This has created a gap in knowledge as researchers explore the activities of the informal sector in the economies of developing countries. The purpose of this qualitative multiple case study was to explore and analyze the reasons informal sector business owners have negative opinions and attitudes against taxation. Research participants were drawn from informal sector businesses in the La Nkwantanang Madina Municipal Assembly in the Greater Accra Region of Ghana. The study explored the behavior modification and behavior economic theories to determine why informal sector business owners are ambivalent in their taxpaying obligations. The research questions were answered by interviewing 6 business owners from the informal sector with the aim of drawing up inferences about their perceptions on taxation. Some of the key findings from the study were that taxpayers have negative remarks about their interactions with tax officials because tax agents do not respect and provide the best customer service, agents misuse tax money, taxpayers do not see any benefit for paying taxes, and they are not even sure about how their tax money is used. The findings from the study present stark implications for tax officials to pursue their tax collection activities with utmost care and honor, to gain respect and confidence from the informal sector taxpayers by eliciting positive behaviors of tax obligations from that sector, as well as influencing tax policy for informal sector businesses in developing countries. The recommendations from the study will spiral future research agenda to expand current knowledge about informal sector business owner’s perceptions and attitudes towards taxation, and to develop an informal sector taxation model to assist tax administrators in developing nations about a more congenial way to handle informal sector business owners.

Indexing (document details)
Advisor: Kuhn, John, Bakari, Marie
Commitee: Bakari, Marie, Blyler, Diane, Kuhn, John, Mika, Eva, Oloyede, Joseph, Ruankaew, Thanasak, Shiaw, Horn-yeu
School: Northcentral University
Department: Business and Technology Management
School Location: United States -- California
Source: DAI-A 80/07(E), Dissertation Abstracts International
Subjects: Accounting, Business administration
Keywords: Budget deficit, Informal sector, Optimal tax theory, Tax culture, Tax gap, Tax morale
Publication Number: 13419196
ISBN: 978-1-392-00017-5
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