Effect of Taxpayer Knowledge and Taxation Socialization on Taxpayer Compliance: The Mediating Role of Taxpayer Awareness

Abstract

This study dives into the complex dynamics of taxpayer compliance, investigating the interactions between knowledge, taxation socialization, and awareness in the context of fiscal control. To recognize the critical significance of taxpayer compliance to ensure economic stability, the study emphasizes the symbiotic relationship between legal requirements, societal influences, and individual comprehension. The study plays a critical influence on social norms and the moderating role of taxpayer awareness. The study prioritizes an enhancement to compliance modalities by giving theoretical underpinning and raising significant recommendations for government, tax officers, and researchers to ensure economic growth and development. The study used a structured questionnaire through purposive sampling to choose two and eleven (211) taxpayers within the Kumasi Metropolitan. The study revealed a positive correlation between tax knowledge and compliance. This study shows that socialization on taxpayer compliance has a positive significant impact. The effect of tax knowledge and tax socialization on taxpayer awareness is crucial, resulting in improved compliance. The study recommends efforts to improve tax socialization, counseling on the relevance of paying taxes; and intensifying educational agendas to raise residents’ understanding of taxation. Finally, the findings show the proactiveness and the potential to significantly enhance tax compliance and knowledge among Ghanaian taxpayers.