A Study on the Dynamics of Computerisation on Tax and Customs Administrations in the Gambia: Challenges and Prospects (A Case Study of the Gambia Revenue Authority

Abstract

The development of tax and customs computerisation has been one of the greatest challenges the tax administration system in The Gambia has been faced with since 1991. Recognising this challenge, the government of The Gambia from the First Republic and the Second Republic, respectively has ideate well-meaning strategic reforms and modernisation programmes all geared to improve the fiscal space and to effectively, and efficiently manage the public revenue with better accounting, audit and enforcement tools. This saw the need to invest in IT infrastructure as a need to catapult an efficient revenue collections system in order to ideate better fiscal mechanisms and tactics of addressing the issues of fiscal corruptions, frauds, tax evasion and avoidance that result to loss of public revenues. However, it has been one of a major battling challenge to the tax administration and continues to be a key challenge, despite the huge investments in the drive towards automation from the conception, development, training, deployment and implementation of modern IT structures and platform. The study set out to examine the nature and prospects of computerisation in tax and customs administration from The Gambia’s tax system perspectives. In addition, this paper investigates the adoption of automation by The Gambia Revenue Authority in the stream of revenue generation and tax administration. The study basically focuses on the role of automation as a key driver of better addressing the pervasive fraud in the tax systems, hence supporting better, effective and efficient administration and collections of government revenues. The study uses a mixed method approach consisting of both quantitative and qualitative methods. This was informed by the dearth of credible statistical data on the implementation of GAMTAXNET as well as that of the ASYCUDA implementation strategies. The thesis therefore, draws on a questionnaire survey and semi-structured interviews all geared to make an empirical inquiry on the GRA’s experience in the sphere of automation. This design method of the research was adopted so as to exhaustively study the variables within the stipulated time for the research proper. The research instruments were self-administered questionnaires. Simple random sampling method was used to select respondents from the sample size of 80 and the response rate was 100%. This was considered satisfactory for a study of this nature. This thesis innumerate some challenges yet to be resolved in the area of the payment, registration and audit modules which were not interrelating seamlessly. Other areas of challenges are e-filing, e-payment and reconciliation for proper revenue management. The results of the study reveal significant positive relationships between automation and tax, and customs administration. From the results conclusions were drawn. Therefore, this study calls for further research to be carried out on the socioeconomic benefits of tax and customs computerisation based on the challenges faced by the tax administration and government of the Gambia as discussed above as well as the current public opposition to the computerisation of the Gambian tax system.