Rent Tax Compliance
Rent Tax Compliance
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Abstract on Rent Tax Compliance
The real estate sector is one of the fastest growing sub-sectors in the Ghanaian economy. According to the Ghana Revenue Authority, rent income tax collected from this sector has not been encouraging. This study seeks to determine the factors affecting rent income tax compliance in Tarkwa Nsueam and Sefwi Wiawso Municipalities. The study used quantitative approach. Simple random sampling was used to select 278 property owners as the sample size. Data was collected using a structured questionnaire; coded, keyed and analysed using descriptive statistics: mean, frequency and standard deviation. Inferential statistics including Pearson correlation coefficient and multilinear regression model were used to infer population characteristics from the sample. The findings indicate that; rent income tax compliance cost had a negative effect on the level of rent income tax compliance. However, rent income tax knowledge and education had positive effect on the level of rent income tax compliance, rent income tax fines and penalties had positive effect on the level of rent income tax compliance while perceived opportunity for rent income tax evasion by property owners had a negative effect. Majority of property owners had no knowledge of rent income tax law and most property owners do not know how to declare their rent income for tax purpose. Thus, high rent income tax compliance cost and high opportunity for rent income tax evasion will reduce rent income tax compliance among property owners. Appropriate fines and penalties should be enforced to deter property owners from evading rent income tax. Tax authorities should intensify education on rent income tax compliance, simplifying processes involved in filling rent income tax returns.
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