This paper seeks to determine the extent of knowledge about gift tax in Ghana using the Accra-Tema Metropolis as a sample population. It further seeks to ascertain the extent of compliance with Gift Tax in Ghana. If the level of compliance is low, then to find out reasons for non compliance in order to ascertain the applicability of Fischer’s tax compliance model in Ghana. Finally, the paper aims at contributing to the very scanty literature on tax compliance in Ghana. In order to achieve the above objective, the researcher used a direct method of measuring tax compliance, which involves the use of direct surveys of taxpayer behavior. Furthermore, a cross sectional data on individual tax returns filed for the years of assessment 2009 to 2012 was also used. The results indicate a very low awareness rate of Gift Tax; consequently, the compliance rate is also very low. The respondents cited lack of knowledge as the main reason for failing to comply with the tax. Educational level and the low detection rate were the other principal factors cited for non-compliance. The Fischer tax compliance model was thus accepted as explaining the non compliance nature.

Gift tax, Ghana, compliance