Title: Assessing the relative influence of deterrent sanctions, tax fairness perceptions, personal norms and fiscal exchange perceptions on rent income tax compliance in Ghana

Authors: David Kwabla Adegbedzi; Samuel Gameli Gadzo; Holy Kwabla Kportorgbi

Addresses: Department of Accounting, School of Business, University of Education, Winneba, Ghana ' Department of Accounting, School of Business, University of Education, Winneba, Ghana ' Ghana Institute of Management and Public Administration, Accra, Ghana

Abstract: This study examines the relative influence of sanctions, tax fairness, personal norms, fiscal exchange, and trust in government on rent tax compliance in Ghana. Using data from 360 rented property owners, analysed through partial least squares-structural equation modelling (PLS-SEM), the study finds tax fairness to be the strongest predictor of compliance, followed by trust in government, sanctions, and fiscal exchange valuation. Personal norm does not influence compliance. The study concludes that low rent tax extraction in Ghana is driven by unfairness perception of rent tax, low trust in government, and weak sanctions. To improve compliance, the study recommends redesigning rent tax laws to address fairness concerns, enhance fiscal exchange, and implement deterring sanction regimes. This study is unique as it fetches perspectives on rent tax in a jurisdiction that often touts unexplored potentials of rent tax and adopts PLS-SEM technique, enabling relative and concurrent study of influence of multiple variables.

Keywords: rent tax compliance; tax fairness; personal norms; fiscal exchange; trust in government; Ghana.

DOI: 10.1504/AJAAF.2025.143548

African Journal of Accounting, Auditing and Finance, 2025 Vol.9 No.1, pp.42 - 64

Received: 29 May 2023
Accepted: 30 Aug 2024
Published online: 30 Dec 2024 *

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