Determinants of Tax Audit Effectiveness in Ghana

Abstract

Purpose: The aim of this study is to examine the factors that influence tax audit effectiveness in the context of Ghana.

Design/ Methodology/Approach: The study uses the quantitative approach and survey design. Stratified sampling is adopted to select a sample of 205 auditors from tax auditors in DTRD of GRA. The survey is conducted to obtain primary data by distributing a structured research questionnaire to respondents. A hierarchical regression analysis was adopted to analyze the data obtained using SPSS.   

Findings: Organizational and regulatory factors are significant predictors of tax audit effectiveness, but tax auditor factors have no significant influence on tax audit effectiveness.

Implications/Research limitations: The study extends the literature on tax audit effectiveness and its determining factors, especially in developing countries like Ghana. However, it is limited to only tax auditors within DTRD of GRA.

Practical implications: The study's findings have the potential to influence GRA's top management to enhance their organizational arrangements and management support for tax audit activities, enhancing the process for the state's benefit.

Originality of value: This study brings to bear the major determinants of tax audit effectiveness for enhanced revenue mobilization in a developing country context that are not predominant in existing literature.