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For decades, researchers of tax systems and taxationas a whole are in a dilemma on the factors affecting taxpayers’ noncompliantbehaviors. Numerous experimental and survey results concluded by taxresearchers have identified characteristics of noncompliant taxpayers becausetax revenues are seen as a major source of income in funding governmentexpenditures. Globalization has called for a huge demand for numerous publicservices thereby forcing governments into increasing tax revenues to financethese projects. The demand of public service by government and taxpayers shiftsthe burden of taxes to taxpayers. The gap between tax revenues and taxexpenditures are swelling thereby ensuring unbalanced government budgets due totaxpayers’ noncompliance. Understanding the causes of tax evasion calls forresearch into taxpayers’ reasons for evading taxes. The main aim of the studyis investigating factors that have a detrimental effect on tax evasion inGhana. In coming out with such factors, this research employed multipleregression techniques and factor analysis. The empirical results obtained fromthe analysis revealed that taxation and fiscal factors, demographic factors,administrative factors and economics factors are the main factors that have asignificant effect on the evasion of taxes.


Factor Analysis, Tax Evasion, Tax Compliance, Ghana

Cite this paper

Ameyaw, B. and Dzaka, D. 2016 Determinants of Tax Evasion: Empirical Evidence from Ghana. Modern Economy, 7, 1653-1664. doi: 10.4236-me.2016.714145.

Author: Bismark Ameyaw1, Dominic Dzaka2



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