Effectiveness of tax collection in Ghana; is the digitalisation a game changer

Abstract

This study examined the effect of digitalisation on tax collection in Ghana using primary data which was sourced from Ghana Revenue Authority office in Agona Swedru. To achieve this, the study employed the quantitative approach, with the descriptive and longitudinal study being the design adopted for the study. The study also adopted the Unified Theory of Acceptance and Use of Technology, Activity Theory and Fiscal Exchange Theory in explaining the concept of digitalisation in tax administration in Ghana. Further, in handling a sample size of one hundred and twenty-four respondents, the primary data was imputed into Statistical Package for the Social Sciences for descriptive statistics to be done. The study further employed the regression analysis as the estimation of the conditional expectation of the dependent variable given the predictive variables. The analytical results revealed that digitalization has effects on tax collection. Also, there was an early indication from the correlation analysis that, Electronic Payment System, Electronic Tax Registration and Electronic Filing System are strongly and favourably correlated to Tax Collection. The relationship between Tax Identification Number and Tax Collection is significant but adverse due to poor electronic management system in Ghana by GRA. Hence the study concluded that, digitalisation as indicated by the regression analysis support that electronic registration, Electronic Filing of Tax Returns and TIN System has strong association with Tax Collection although Electronic Payment System has small association due to poor internet and technological system. Therefore, the study recommended that policymakers should develop an interest in promoting digitalisation in Tax Administration through funding and public education.