Mending the tax net in Ghana a perspective of tax officials

Abstract

The purpose of the study focused on exploring areas of mending the tax net from the tax officials’ perspective. The theoretical framework for this study was anchored on the deterrence theory and principal-agent theory. The study adopted a qualitative approach using a case study and thematic analysis to analyse responses. A sample of twelve (12) respondents consisting of tax officials at Swedru GRA office was purposefully selected for this study. Three main objectives were set to explore this study; knowledge of various loopholes in the tax system, various tax reforms that have contributed to mending the tax net and contemporary strategies to improve tax compliance. The study's findings indicated that tax systems that contain tax loopholes include; income tax, property tax and tax on domestic goods and services. Again, Covid-19 Health Recovery Levy Act, Financial Sector Recovery Levy Act, Energy Sector Levy (Amendment), and Electronic Transfer levy Act) are various tax reforms that have contributed to mending the tax net. Contemporary tax compliance strategies include; responsible accountability, digitization and formalized stakeholder engagement. The study recommended that GRA consider amending systems supporting income tax, property and domestic tax. Robust systems should be adopted. Again, actual tax rates are to be charged on these various tax forms. Outrageous tax rates are an indication of an unforeseen tax loophole. The study suggested a quantitative approach, and other geographical jurisdictions confirmed research results at Swedru GRA office.