Impact Of Ethics On Tax Practices In Ghana

Abstract

All countries depend on taxes to raise money to meet their "expenditure requirements" on a global scale. Private firms, which include both large and small and medium-sized businesses, are a major source of tax revenue in Ghana. Although most firms in Ghana, especially "small and medium-sized organizations," fail to pay taxes and abide by the law. However, few small and medium-sized businesses pay state taxes and abide by tax regulations. Taxation-related issues become more important in light of the growing link between the domestic economy and the global market. It has been noted that multinational firms frequently transfer profits to countries with low tax rates and tax havens to lower their tax obligations. Tax avoidance and evasion are also practices by private persons. Emerging discussions on how to lessen tax evasion and avoidance are crucial in such a situation. Traditional sanctions are frequently used to do this, but the current study investigates the influence of ethics on tax procedures, the role of moral arguments in guaranteeing tax compliance, and the significance of tax literacy. It is concluded that for higher long-term benefits, moral arguments must be included in the conventional penalties system. Therefore, the purpose of this article is to ascertain how ethics affect tax compliance and procedures in Ghana.